When a well-curated loyalty program can boost brand awareness by 71% and customer satisfaction by 55%, the need for a good loyalty program is unmatched.
However, consider this scenario. You have spent months crafting the perfect rewards program for your channel partners, leveraging the best loyalty management system. It promises incentives, rewards, easy reimburses, etc. But, once you launch the program, the reality hits.
Adoption is sluggish, the channel partners seem to be confused and the entire loyalty program system seems like a headache more than a game-changer for your business. Challenges when implementing a loyalty program are common.
Its how you address these issues and navigate through them to turn the tables is what matters. We are here to break it down in this exclusive 1Channel guide.
1. Lack of Buy-In from Channel Partners
The classic case of "Why should I care?" When you launch your loyalty program, that’s usually the very first thing that your channel partners will enquire about. What is it in for them? Why should they consider your loyalty program over your competitor’s?
From handling multiple brands to juggling sales quotas, your channel partners and last mile advocates are working overboard. So, if your loyalty management software doesn’t show them immediate benefits and perks, they won’t engage.
Why does it happen?
- Your rewards likely don’t align with their personal needs.
- They are finding better benefits in other loyalty programs.
- The program feels like another “corporate initiative.”
How to fix it?
Just because it’s a challenge doesn’t mean it doesn’t come with a resolution. The key is to present your loyalty program as a well-rounded program.
Instead of saying, "Earn points and redeem rewards," say, "Increase your earnings by 20% while selling the same volume."
Furthermore, in the present world of customisation, you can’t expect every channel partner to settle for the same reward. So, assess their interests, workflow patters and contribution and reprogram the rewards to align with their interests.
If another distributor boosted their sales by 30% using your program, highlight that. People trust proof over promises.
2. Complex and Confusing Onboarding Process
There is a classic saying, “Penny wise, pound foolish,” which literally translates to if its too much of a hassle, it’s not worth it.
Your channel partners and last mile advocates are here to support your business in its sales and growth journey. They aren’t here to spend weeks trying to configure and learn the basics of a loyalty program or the software. Its just not worth their time.
So, a complicated onboarding process is usually a common challenge business have to deal with when implementing a loyalty program management. If the partners have to jump through hoops to sign up, understand the system and claim their rewards, they will drop it.
Why it happens?
- The registration process is complex or too long.
- The software has a complex user interface and user experience, requiring extensive training.
- There is no human back-end support for quick resolutions.
How to fix it?
There is a common training process in the B2B world called the “KISS” method, translating to Keep it stupid simple. This means having a registration process that requires an email or phone number and password for logging in.
A great way to overcome the channel of onboarding is with instant gratification by introducing welcome bonuses. Also, if needed, ensure that the software you are using has guided tutorials for the channel partners to access.
Don’t forget about having a dedicated support team on the backend to assist the partners if they are stuck somewhere.
3. Failing to Spark Genuine Partner Participation
As a business owner, you want your efforts to yield results. This applies to the loyalty management system you have in place. But, what if the opposite happens?
Your program is live, but the numbers are underwhelming. What gives? You’d be surprised to know that the lack of partner engagement is usually 80% of the time why loyalty programs fail.
Why it happens?
- The rewards you are offering aren’t intriguing or exciting enough.
- The program feels passive, meaning that it lacks gamification and good interactivity.
- There are no push notifications or reminders for the channel partners to check in.
How to fix it?
The best way to overcome the engagement echo chamber is by introducing gamification in the loyalty program with features like leaderboards, tier-based rewards, and achievement badges. Sometimes, a healthy competition is what provides the push and leverage.
You might not understand the significance of a short nudge in the form of push-notification like SMS, WhatsApp, or email but they enable your channel partners to check their progress and redeem rewards.
Lastly, humans love “limited time” rewards and bonuses. So, to make your loyalty management salesforce more engaged, introduce seasonal rewards program.
4. Tracking and Claiming Rewards is a Hassle
Your ultimate goal with a B2B loyalty program is successful redemption of the rewards by the channel partners. But, what if your reward system is clunky?
Put yourself in their shoes. How often does it happen that you have a cashback reward but the redeeming process is so complicated and lengthy that you don’t even bother. Your channel partners might be facing a similar issue.
Why it happens?
- The rewards redemption process is complicated and lengthy.
- Claims require manual approvals every step of the way.
- There’s lack of transparency, meaning that the partners have no idea when they will get access to their rewards.
How to fix it?
The process of rectifying these challenges is simple – automation. Prioritise and implement instant redemptions of the rewards and eliminate frustration.
Also, your channel partners will pay more attention to your loyalty management system when there’s transparency. So, if a cashback will take 3 days to process, communicate it upfront. Also, a unified dashboard with all the progress and the rewards is a great way to keep things rolling without losing motivation.
5. Fraud and Misuse of the System
There are reports that depict that loyalty fraud now accounts for up to 31% of all online merchant fraud attempts. Not just in the customer loyalty space, the issue is quite prevalent in channel partner loyalty as well, if the right measures aren’t taken.
From fake claims to duplicate accounts, the issues are extensive. Not only does it affect the ethos of a business, it is bound to drain your loyalty program’s budget eventually.
Why it happens?
- There is no verification process for the sales claims.
- There are loopholes in the system that allow manipulation.
- There are no fraud detection mechanisms in place.
How to fix it?
The first step is to integrate a fraud detection system that will flag down suspicious activities like multiple claims, etc.
Also, having two-step verification process for the claims with invoice uploads, geo-tagging sales, or linking rewards to actual purchases, can effectively reduce the chances of fraud. Ensure that you are capping how many rewards a single partner can claim in a given period.
Navigate the Channel Partner Loyalty Program Journey with 1Channel
There’s no doubt that implementing a loyalty management system for your channel partners and last mile advocates can be a complex undertaking. But, does that mean you shouldn’t attempt it?
Despite the challenges, the right loyalty program has the capacity to drive sales, augment sales and put your business in the spotlight. Who would want to miss out on that? Let 1Channel’s loyalty management platform take over all the burden off your shoulder.
From addressing the challenges to building long term loyalty, we make it work for you.
Let 1Channel team be your guide. Book your free demo with us.
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