Herding channel partner loyalty is a fairly challenging affair. You're juggling incentives, trying to boost engagement, and hoping to see a real return on your investment. It is no doubt a pretty tough gig.
However, what if you could simplify and streamline the entire process of channel partner loyalty with a unified software? That’s where a holistic and customisable loyalty rewards management system like 1Channel comes into the picture.
The right loyalty management tool will not only understand the challenges of channel management but also enable you to unlock the full potential of your partner network. If you want to maximise the ROI with a channel partner LMS, there are certain practices that you can put in place.
1. Don’t Just Throw Rewards Around: Align the Incentives with Business Goals
Consider a scenario in your mind where you launch your coveted loyalty program that has amazing rewards structure. However, despite the good incentives and transparent loyalty program, your channel partners aren’t pushing your premium products and are prioritising your competitors over you.
The worse of the situation is when the channel partners are simply gaming the system to simply rack up the points without actually driving sales. Sounds frustrating, doesn’t it?
However, why does it happen? Primarily due to misaligned incentives. So, if you wish to maximise your ROI from the loyalty programs, you need avoid handing out incentives and perks blindly. Instead, encourage and steer the channel partners towards behaviour that drives actual business growth.
How to Maximise ROI?
- Define clear objectives by aligning the incentives to specific KPIs (key performance indicators) that matter.
- Prioritise incentivising unique factors like high-margin products, new customer acquisitions, cross-selling, upselling, etc., instead of only rewarding volume sales.
- Introducing milestone-based and tier-based rewards program makes the channel partners hungry for bigger rewards, thereby pushing and motivating them.
2. If It’s Complicated, They Won’t Care: Simplify the User Experience
Irrespective of whether you like tech or not, no one has the time to spend hours trying to figure out how to redeem their rewards on the loyalty management system, especially not your channel partners.
Elements like clunky interfaces, endless paperwork and wait times for redeeming the rewards are the red flags your channel partners will most likely not entertain. Not only will they lose interest fast, they will also switch to the next best thing – aka your competitors.
One thing that you have to keep into consideration is that your channel partners and last mile advocates are already juggling multiple products and brands. If your loyalty program feels like extra work, they will focus on easier, more rewarding alternatives.
How to Maximise ROI?
- The first step to solve this issue is by making the enrollment process of the channel loyalty program seamless with a mobile-friendly and mobile-first interface. The less blanks your channel partner has to fill, the more interested and inclined they’d be to your programs.
- We currently live in the world of automation, so the easiest way to maximise ROI is by automating rewards tracking. Instead of making your channel partners having to upload the invoices manually or chase down approvals, automate the entire process with 1Channel’s LMS so that the rewards are updated instantly.
- Diversity in your rewards program is paramount, especially including components like cash, discounts, merchandise, travel perks etc. Every channel partner is different and so are their aspirations related to the rewards.
3. Make the Channel Partners Feel Valued: Recognize and Reward More than Sales
Businesses undoubtedly rely on their channel partners for driving sales. There’s no two ways about it. However, driving successful sales isn’t the only work that the partner network is putting in.
If you want to make the most out of your loyalty rewards management system, you have to see your channel partners as more than sales people. They are also your brand advocates, relationship builders and problem solvers.
So, only incentivising your channel partners for the sales they make prevent you from building deeper relationships with them, which, in turn, translates to long-term loyalty.
How to Maximise ROI?
- Beyond sales, reward non-sales accomplishments too. This includes recognising your partners for attending training, resolving customer issues, referring new clients, etc.
- At the end of the day, your channel partners are human beings who get excited over unexpected rewards. Offering surprise incentives like a festival bonus, birthday gift, or exclusive access to a new product launch can foster emotional loyalty, which goes beyond points.
- Gamification is one of the best ways to make the most out of your loyalty management program. You can introduce components like leaderboards, badges, achievement levels, etc. to keep the partner network motivated and even foster healthy competition.
4. Don’t Let Communication Become Background Noise: Listen to Your Channel Partners
If your channel partners don’t like your loyalty program, let them be vocal about it. If your channel partners don’t know about your business’ loyalty program, communicate that to them instantly.
One of the primary reasons most common reasons businesses aren’t able to make the maximum out of their loyalty programs is due to lack of communication between them and the channel partners. Many businesses launch a loyalty program with great fanfare and then go silent—only to wonder why engagement drops after a few months.
The key is to remain dynamic, make changes, and make the whole ordeal enticing enough for people to not only explore but stick around as well.
How to Maximise ROI?
- Often, loyalty programs take a backseat in the minds of the channel partners. If it’s out of sight, chances are that it will be out of mind too. That’s exactly what you need to address with personalised reminders and notifications.
- You can send monthly performance summaries, along with channel partner rewards at the end of the month, based on their performances.
- Traditional emails often get ignored. Use push notifications, WhatsApp messages, or SMS alerts to ensure partners don’t miss updates. This way, you get to churn the most ROI out of your loyalty program without any complications.
5. Don’t Set It and Forget It: Measure and Adapt with Data and Analytics
If you think a loyalty program is a one-time setup, you are already setting things up for failure. Your loyalty management software needs to be customisable and adapt to the needs of the expanding business and channel partner network.
Not just that, if you aren’t taking your time to analyse which rewards are driving engagement and which ones are being driven out to the curb side, you are simply leaving money on the table.
How to Maximise ROI?
- The use of data is crucial for tracking key performance metrics like redemption rates, partner engagement levels, average transaction values, and churn rates. This allows you to gauge the effectiveness of the rewards program.
- If this is your first rodeo with loyalty management tools, consider conducting A/B testing to experiment with different rewards structures, point expiration policies and bonus incentives.
- The easiest way to optimise your loyalty program is by taking the feedback of the channel partners. Ask them what they love, what frustrates them and what they want more of. This data allows you to tweak the programs accordingly.
Drive Revenue Engine with 1Channel Loyalty Management System
A comprehensive loyalty rewards management system is an investment you don’t want to shy away from. With the right moves and optimisation, these loyalty programs can transform your channel partners into engaged, loyal advocates who actively push your brand.
Given that there are so many factors at play, the key is to hone the best practices that ensure your LMS drives real business value, all while strengthening your channel relationships.
Interested in taking your channel partner loyalty program to the next level? Book your free demo with 1Channel today!
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