An Incentive Research Foundation (IRF) report suggests that businesses that invest in channel partner loyalty management experience 32% increase in revenue and 30% increase in market share.
With the rising competition across varying industries, holding onto your loyalty channel partner network is a lot more necessary than many businesses deem necessary. But here’s the catch: loyalty isn’t built overnight, and in B2B ecosystems, it’s even more complex.
If you are intrigued about how the right loyalty management program can enhance channel partner retention, you are in the right place.
Why Retaining Channel Partners & Advocates Is a Bigger Challenge Than Customer Loyalty?
The prospect of CRM and customer loyalty is a common subject that most businesses are aware of. Think of it this way - getting an individual customer to buy a product again is easier than convincing an entire network of distributors, retailers, resellers, or last-mile advocates to stay loyal to your brand.
But, why is that the case?
They have multiple options, meaning that your competitors are likely offering the channel partner network with similar products, often at similar or cheaper price points.
They care about profitability, meaning that if a different brand or business is offering the channel partner better margins, why wouldn’t they jump on that offer?
They want recognition and not just commissions, highlighting the fact that partners often crave exclusive benefits, recognition and long-term value besides the standard monetary incentives.
The right loyalty management system (LMS) will proactively address these challenges and offer a structured, transparent and automated loyalty program that caters to the best interest of the channel partners and last mile advocates.
How an LMS Elevates Retention & Engagement for Channel Partners?
The concept of a well-curated loyalty program is not just a theoretical thought. Instead, they are becoming the driving force behind many business’ growing sales and partner loyalty.
But, how does an LMS supercharge engagement and build long-term loyalty among the partner network? Following are a few pointers you need to keep in mind:
1. Making Rewards More Than Just Cash Incentives
To better understand this, let us look into an example.
You are a distributor working with two brands – Brand A and Brand B. Brand A is extremely prompt with their loyalty programs and rewards, offering a flat commission directly to your bank account whenever you hit a sales target. Brand B, on the other hand, offers a mix of rewards. Beyond the standard monetary incentives, they also surprise you with exclusive business-class tickets to an industry event. Which brand would you be more inclined to promote and stick with in the long run?
Most likely Brand B.
This highlights the importance of curating loyalty programs that offer more than cash incentives. You want to offer a “choice” by being versatile with the rewards including options like experiential rewards like VIP events, international trips, luxury gifts, etc. or early access to new products.
Making your rewards more aspirational instead of just financial makes your channel partner network feel valued and keep them more engaged.
2. Gamification to Keep Your Partners Hooked
“There is nothing like a good competition to push you even further,” is a phrase that applies to every aspect of our lives, including the loyalty programs that you have in place for your channel partners.
In fact, the thrill of winning is hardwired into human psychology. With 1Channel’s LMS, which is designed and developed with gamification at its heart, you get to make the entire experience quite fun and engaging for your channel partners instead of it feeling like another job.
Components like leaderboards, challenges and missions and badges are a few amazing things you can consider adding to your loyalty programs to keep your partners motivated while reinforcing brand affinity—a win-win for both parties.
3. Data-Driven Personalisation
Consider two scenarios and two emails being sent out to your channel partners.
"Dear Partner, you’ve sold 5,000 units this quarter. If you hit 7,000, you’ll unlock a 20% extra incentive and an all-expenses-paid trip to Singapore!"
Now compare that to:
"Dear Partner, thanks for your sales efforts. Keep going!"
Which one out of the two is more likely to inspire action? Undoubtedly the first one, right? This explains the importance of a well-rounded loyalty management program.
A well-integrated LMS will help businesses track partner performance, preferences, and engagement levels, enabling them to offer personalised incentives that truly cater to the interests of the channel partners. You will realise that when a channel partner is assured that the loyalty program is tailored just for them, it automatically boosts the engagement levels.
4. Offer Exclusive Benefits Using Tier-Based Loyalty Programs
People love unlocking higher statuses—whether it’s a frequent flyer program, premium credit card, or elite shopping membership. The same concept applies to channel partners.
Leveraging a loyalty management platform like 1Channel where customisation is at the forefront, you get to curate programs that includes tiered loyalty bonuses where the partner network gets the incentives to grow their business with you because each level unlocks better benefits.
An example of a tiered loyalty program is:
Silver level – Basic cash benefits, early access to deals.
Golder level – Higher commission rates, premium customer support.
Platinum level – Business expansion support, exclusive retreats, global networking events.
A channel partner that’s new and has just started working for your business will likely start from the “Silver” level and work hard to climb up to the “Platinum” level to unlock exclusive benefits.
This gamified progression system ensures partners aspire to climb higher, staying invested in the long-term growth of your brand.
5. Turn your Channel Partners into Brand Evangelists
To boost channel partner engagement via loyalty programs, you need to encourage advocacy and referrals. The more they preach about your business, the better are their rewards and better are your sales – there’s no one losing in the process, so why not?
Whenever a channel partner brings new referrals, reward them with incentives that truly make them feel valued for their contribution. Not just that, you can also showcase your channel partners on your business’ website, displaying their success stories and truly recognising and rewarding their influence.
When your channel partners feel great about the recognition, it transforms them into voluntary ambassadors, extending your brand’s reach organically.
Loyalty is a Long-Term Investment, Not Just a Perk!
Investing your money on a loyalty management program will yield maximum returns for your business by not only retaining the channel partners but keeping them hooked to your brand. When your distributors, retailers and last mile advocates are raving about your brand, it translates positively into your brand’s sales too.
If you’re looking to redefine engagement, boost retention, and create a loyalty program that actually works, 1Channel’s Loyalty Management System is built exactly for that.
With 1Channel, you can automate rewards, get real-time insights and drive long-term partner loyalty. You can book your free demo with us and build a loyalty that lasts.
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