The terms channel partner loyalty programs and B2B Customer loyalty programs aren’t new. Over the last few decades, businesses that dealt with trade partners, such as dealers, distributors, stockists, wholesalers, resellers, and anyone who assists them sell their products to end customers, devised innovative strategies to reward their loyalty and create enduring relationships with them.
That led to the inception of the contemporary channel partner loyalty program as we know it today. Today, in a time of a globalized and highly-competitive economy, the terms are more relevant than ever before when several businesses are finding out ways to capture the attention of sales channel partners.
Using that, you can reward your channel sales partners, incentivize them to do more business with you, and create enduring relationships. By keeping your trade associates happy, you’ll win their loyalty, build brand awareness, register more sales, and enjoy a greater market share than your competitors.
In the contemporary globalized and highly-competitive economy, where a majority of B2B companies are devising strategies to capture the attention of top channel partners and retain their loyalty, the programs are more relevant than ever before.
At LoyaltyXpert, we have crafted a wide range of tailored and effective channel partner loyalty programs by leveraging our sophisticated loyalty program software that gave a massive competitive edge to our clients and enabled them to remain ahead of the curve.
If you’re looking to stay ahead of the competition and keep your sales channel partners loyal to your business for good, then this blog post is going to be extremely insightful and valuable to you.
Why do you need a Channel Partner loyalty program?
A channel loyalty program is a potent way to win loyalty and create long-standing relationships with direct and indirect channel partners. Here’s why you need a well-crafted channel partner loyalty program:
To enhance engagement with channel partners
A channel loyalty program is extremely ideal to enhance engagement with all your sales partners. Apart from encouraging and motivating your trade associates, it enables you to understand their buying patterns as well as analyze the profitability scope. A Salesforce study revealed that close to 85 percent of channel partners are more likely to do business with a company that better understands their business objectives.
To drive channel revenue
A well-crafted and tailored channel partner loyalty program can enhance channel revenue by supporting higher growth in the revenue of specific products and services. As per recent data, effective channel partner programs can enhance channel sales partners’ sales volume, revenue, and profits by up to 40 percent.
An Incentive Research Foundation study found that over 43 percent of companies use at least one non-cash channel reward, while 81 percent of best-performing businesses used non-cash loyalty programs. These non-cash loyalty programs accounted for a growth of 32 percent in channel revenue and a 30 percent rise in market share.
Another study reveals that businesses that use non-cash rewards for their channel partners register an average yearly revenue growth of 10 percent compared to other businesses averaging just three percent.
To encourage the adoption of new products or solutions
A new product or technology can be a breakthrough for your business but it may not be that exciting for a majority of your channel sales partners. In the absence of a strong incentive program, most of them are more likely to resist or be indifferent to, the new changes than embrace them. That’s where an effective channel loyalty program can help.
By providing your trade associates with attractive rewards, a well-designed channel partner loyalty program will encourage them to adopt and engage with your new products and solutions. Apart from that, your channel partners will be happy to participate in various controlled marketing programs.
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To empower channel partners to take ownership of sales
For a manufacturer, making sure that his products or solutions make their way to the target customers is their biggest objective. After developing the products and services, they need to ensure that their offerings reach the market and that’s where channel loyalty programs come into play.
A well-devised channel loyalty program empowers channel associates to take complete ownership of the sales. With the program, they feel like a part of your company and act as an extension of your sales team. Not only that, but they also act as your brand advocate and influence customers’ purchasing decisions in your favor.
To gain a competitive edge
A well-established channel loyalty program can provide your business with a competitive edge in more than one way. As trade associates become more satisfied with your loyalty rewards, they are more likely to give priority to your company compared to other competitors manufacturing similar products and solutions.
To provide trade associates with useful resources and expertise
A well-crafted channel partner loyalty program provides a wide range of resources, expertise, and finances. The resources include marketing support, technical support, market training, and much more, which will enhance trade associates’ and channel partners’ knowledge about your company.
To enhance market credibility and brand recognition
Channel loyalty programs can enhance your business’s market credibility, brand recognition, and brand value by leaps and bounds. When channel sales partners get good rewards and incentives from a company, they will promote it more and spread the good word to all their customers and partners. This will give you more credibility, and recognition, as well as enhance your brand value.
Taking everything into account
Channel partner loyalty program is extremely important for B2B companies and manufacturing businesses. If you are a B2B company or a manufacturing firm, then it’s critical to have a strong association with your channel sales partners and reinforce their loyalty. That’s where we at LoyaltyXpert can help you achieve just that. By designing customized and effective channel partner loyalty programs, we will keep your trade associates loyal and connected to your business. Call us to know how we will make that happen.