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Tonnex International - Reseller Rewards Company/Industry Overview Tonnex International is a wholesaler of 100% genuine OEM computer consumables focused on innovation and diversity of their operations. In their industry the market forces are for the most part based on price and as a result the level of competition means that the core product offering becomes quite indifferent from one wholesaler to another. As such the concept formulation for a reward program; Reseller Rewards was developed in 2006. Note: Prior to program launch Tonnex had an annual turnover of approximately $10m with a customer base of approximately 350 resellers.
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| Program
Objectives
The objective for the 1st 12 months was varied. Tonnex wanted to increase their customer base to 600 resellers and due to the increased loyalty they were projecting that this program would provide, they were forecasting a turnover of $20m at the end of the first 12 months. The program also had the objective of enhancing Tonnex’s branding strategy to position themselves in the marketplace as an innovative business providing real rewards and value added services for their resellers.
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| Project
Development
Based on these objectives there was a careful program design around branding, education, exit barriers and achievable rewards for the diverse range of resellers they had on their database. The campaign branding and promotion was also carefully designed to defer any "me-too" programs by competitors. Furthermore, due to the nature of their business Tonnex opted for a hybrid campaign which integrated both web and paper based program participation. This hybrid approach was designed to include resellers who typically resisted an internet approach to business but at the same time provided them incentives to participate on-line again as part of an over-arching strategy to get more customers on-line. Achieving this would provide a more efficient and consistent level of communication to these customers as part of Tonnex’s marketing communication strategy.
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Program Results At the end of Tonnex’s 1st year of Reseller
Rewards Tonnex had over 800 Resellers Registered on the program
and even more importantly they achieved an increase in revenue of
just over $15m well exceeding the $10m increase in turnover objective. Tonnex are now in the 3rd year of their program with Reseller Rewards XL with over 1,300 registered resellers assisting Tonnex reach and exceed their financial targets year on year Tonnex have factored the program in as part of a long term strategic growth plan. Want to find out more about a custom built reward program for your business – Click here
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