6 Benefits of Loyalty and Rewards Program Across Various Industries

A recent GRG India report states that businesses that implement comprehensive channel partner reward programs boost their sales revenue by 32% and market share by 30%. These numbers indicate a dire need for businesses to adapt the right loyalty management software for driving channel loyalty and improved sales efficiency.

With so many different industries around us like FMCG, healthcare, automotive, retail, etc., it is time that brands recognise the contribution of those at the frontline – channel partners, retailers, and influencers.

If you are planning to implement a holistic loyalty and rewards program for your business, understanding the benefits of it across several industries would streamline the implementation process further. This 1Channel guide will walk you through all those insights.

4 Ways Industry-Specific Loyalty and Rewards Programs Are Beneficial

The harmonious functioning of our lives relies on the specific industries and their smooth operations. While, as consumers, we see and buy the final product displayed on the shelf, we often don’t realise the role that the back-end support systems across these industries play.

Businesses are starting to recognise that, which is where the targeted loyalty campaigns are gaining more and more traction. Following are a few reasons why:

1. Industry-specific loyalty programs build trust and solidify partnerships with the distributors and retailers.
2. It equips the last-mile advocates or influencers with the tools and motivation they need to promote the products.
3. It drives engagement and a healthy competition among the channel partners and influencers through gamification and tiered incentives based on performance.
4. It monitors and optimises the loyalty efforts based on the needs of the unique distribution channels.

6 Benefits of Industry-Specific Loyalty and Rewards Programs

Coming to the main question of the hour, “How do loyalty schemes benefit businesses working alongside channel partners and influencers?” According to an Incentive Research Foundation study, businesses that have personalised loyalty programs experience a 40% jump in their sales volume.

In short, when the channel partners feel appreciated, it translates to better sales and brand loyalty.

Following are a few benefits of the industry-specific loyalty and reward programs:

1. Incentivising Performance with Targeted Rewards and Bonuses

One of the most important aspects of implementing a loyalty management program is to ensure that the rewards are provided in a transparent and fair way. This is where performance-based reward programs come into the picture. We have to keep into account that every industry has unique needs and performance requirements from their channel partners, retailers and influencers, which is why the loyalty programs need to be tailored to that.

For example, in the retail industry, the channel partners can be rewarded for meeting their monthly sales target. In the construction or manufacturing industry, the influencers can be rewarded for successful recommendation and sales of products and so on. Linking the rewards with performance fosters a sense of healthy competition, which is pretty amazing to drive business growth.

2. Leveraging Data-Driven Insights to Optimise Partner Engagement

Not just for appeasing the performance and hard work of the channel partners and influencers, the right loyalty management software also provides access to real-time data insights, which allow the businesses to understand the channel partner’s behaviour, track their sales patterns and also recognise the engagement trends.

To give an example, in the FMCG industry, the detailed reports and data on the LMS provides the business a clear understanding of which retailers and distributors are moving the maximum inventory and reward them accordingly for their exceptional performance. Access to this data also allows the businesses to focus on high-yielding partnerships and build stronger connections with them.

3. Gamification to Drive Friendly Competition and Engagement

Across different industries and sectors, the inclusion of gamified elements such as leaderboards, point scoring, and achievement badges are driving engagement among the channel partners and the influencers. Think of it as a way to foster a healthy competition among these individual stakeholders by adding an element of fun into the mix.

Be it the retail associates trying to reach their target to win an amazing coupon discount or an automotive dealer trying to unlock new and exclusive vehicles for their showroom before his competitors, gamification makes the whole process of loyalty and rewards program fun.

4. Implementing Tiered Loyalty Structures for Exclusive Benefits

When it comes to industries, there is an aspect of multi-tiered networks that involve channel partners and influencers, set out in different tiers of the network. The introduction of tiered loyalty programs is a great way to encourage the individual people in the tiered network to get access to benefits and rewards according to their performance.

For example, rewarding high performing partners with exclusive rewards motivates and pushes the other people in the loop to work towards that same goal. These rewards can be in numerous forms, like in healthcare, leading distributors could receive advanced product training or first-look deals before their competitors, providing them a head start.

5. Real-Time Tracking of Partner Contributions for Transparent Reward Distribution

Another one of the biggest benefits of a loyalty program management software is that it creates a sense of fairness and transparency. Instead of “rewarding” the channel partners and the influencers in the shadows, businesses can now reward them based on their performance and the efforts they are putting to drive the business’ growth.

In the hospitality industry, proper LMS can keep a check on the performance of the booking agents and provide them rewards to appreciate their efforts. Furthermore, in the FMCG industry, the businesses can applaud and reward the channel partners, especially distributors, when they reach sales milestones. These small efforts lead to improved partner loyalty.

6. Flexible Reward Redemption for Increased Partner Satisfaction

Last but not the least is flexibility with how the rewards are redeemed. For businesses that want their channel partners to feel valued, there is a need to provide them with the autonomy to choose how and when they want to redeem their rewards and use them. This leeway and the customisation are available with 1Channel loyalty management software.

Not just the convenience for the channel partners and influencers, the personalisation aspect also increases partner satisfaction and loyalty, which leads to improved sales outcomes.

1Channel LMS: Transforming Partner Loyalty Across Industries

The introduction and integration of industry-specific loyalty and rewards programs is revolutionising how brands engage with their channel partners and influencers. Be it the performance-based rewards or access to flexible and personalised loyalty programs, these tailored solutions are empowering brands to drive sales success and growth.

If you are ready to take your business a step ahead, implementing 1Channel’s customisable loyalty management software can be a gamechanger.

Book your free demo today!