For smooth sailing of any business, the secret weapon is loyalty. Not just from the customers but also from the “invisible” and “backend” stakeholders who keep the wheels running – aka the channel partners.
Surprisingly, a report suggests that a well-aimed and personalised loyalty program for channel partners and influencers lead to 18%-30% surge in spending and visit frequency, which is equally beneficial to drive sales and growth of a business.
Are you doing everything you can to keep your business’ channel partners running smoothly and efficiently? Or are you letting it sputter and stall? Understanding the different types of businesses that can benefit from the loyalty management system makes all the difference.
So, which businesses stand to gain the most from a channel partner and advocate-focused loyalty management system? Let's dive in!
1. Fast-Moving Consumer Goods (FMCG) Businesses
Every single one of us have a favourite product that we use on a day-to-day basis. Think of your shampoo, for example. How often do you stop to think how its availability is streamlined on a daily basis, especially with the stocked shelves?
Behind the scenes, there’s a complex network of distributors, wholesalers, and retailers working tirelessly. So, it’s safe to assume that channel loyalty is everything for an FMCG business.
The right loyalty program for the distributors, retailers and last mile advocates of an FMCG company enables them to prioritise your business’ products over your competitor’s. With the right incentives, suddenly your product is front and center in the marketplace. Sounds like a great deal, doesn’t it?
2. Automotive and Spare Parts Industry
Our cars comprise numerous individual parts, which come together to operate in harmony, enabling us to travel from one place to the other. When was the last time you paid attention to one of the spare parts in your car (unless it has been giving you grief)?
While the thought of a spare part might not be as important for you, these small components constitute the business model of majority of the dealers and mechanics in the automotive and spare parts industry.
Dealerships and mechanics often have a choice of where to source their parts. A loyalty management system ensures your brand stays top of mind. In short, when you reward your mechanics and the people in the automotive industry, you basically reward the growth of your business.
3. Pharmaceuticals and Healthcare
The importance of the right loyalty management software in the healthcare industry has more to do with trust and compliance than minting out profits. The channel partners, in this industry, primarily include the distributors, pharmacies, medical representatives, etc., who play a crucial role in getting life-saving medications to the end-users, aka the patients.
Given the stringent regulations and constantly rising competition in the market, pharmaceutical companies can’t afford inefficiencies. This explains the kind of hard work and dedication each member puts into running the entire operation smoothly.
Rewarding them on a personalised loyalty management platform like 1Channel’s, incentivises their performance and instills motivation and a sense of fulfillment in them too.
4. Technology and Electronics
Another integral industry that benefits from a well-structured and rewarding loyalty program is the tech and electronics industry. Be it distributors, retailers, integrators or even the mechanics responsible for the repairs, every stakeholder in the industry are pivotal in helping tech brands expand their reach.
To ensure a steady push to your brand, it is mandatory for businesses to offer attractive incentives that cater to the best interests of the channel partners and influencers. Long gone are the days of vouchers and coupons since reports suggest that 73% of channel partners showcase disinterest in that.
So, the key is to curate a loyalty program that is in the best interest of the stakeholders in the tech and electronics industry.
5. Construction and Building Materials
Cement, steel, tiles—these might not seem glamorous, but they form the backbone of every construction project. And, guess what? The dealers, contractors and distributors get to decide which brand they’d use in their projects.
So, as a business dealing in the construction industry, leveraging the best loyalty management software is not a matter of “choice” but a necessity. A loyalty program can create a direct connection between manufacturers and contractors, bypassing layers of middlemen.
The best way to reward them is through discounts, tools, resources, or even paid trips out to construction expos for better knowledge.
6. Telecommunications
Telecom is all about networks—both the technological kind and the human kind. There are several key players that drive the growth of a telecom brand including dealers, retailers, installers, technicians, etc.
For example, if you want a retailer to promote and sell more of your SIM cards, your business needs to curate a loyalty program that is in their best interests and rewards them for the hard work they’d be putting in to drive the long-term revenue for your telecom business.
With the right loyalty management system, you’d be able to reward the partners for SIM activations, customer retention efforts and even upselling of the premium plans.
7. Travel and Hospitality
When you think of loyalty programs and travel and hospitality industry, the first thing that usually comes to mind is customer loyalty management software. However, the smooth operations of this industry rely on a lot more people that work in the back-end.
Think about travel agents or corporate booking managers, for example. A good loyalty program will encourage them to recommend your hotel chain, airline or travel packages, further propelling your business’ growth.
The kind of rewards you include for these key stakeholders can vary and be highly personalised – from upgraded commissions to free stays in luxury hotels – the sky is the limit.
8. Agriculture and Agri-Tech
The agri and agri-tech industry is booming and expanding at an alarming rate in the present day, so is the reliance on the channel partners like dealers, distributors, stockists, etc.
Implementing a well-curated loyalty management program encourages a lot of benefits for the business including bulk purchases of seeds, discounts on repeat business, motivating the high-performing partners, etc.
The right loyalty program will provide your brand with an upper hand, making it more favourable for the channel partners to use and recommend.
The Big Picture: Trust & Long-Term Partnerships with 1Channel Loyalty Management
The typical "buy-10-get-1-free" punch cards for customer loyalty doesn’t yield the same benefit in case of the channel partners and influencers. In their case, you have to prioritise a loyalty program that truly rewards their work and contributions and foster a stronger sense of community and trust.
So, there you have it – eight types of businesses that can significantly benefit from a loyalty management system designed for channel partners and last-mile advocates.
At 1Channel, our customised loyalty management software simplifies the whole process for you, enabling you to focus on growing your business with the help of your channel partners by your side.
Thinking about grasping this opportunity for your business? Book your free demo today!
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