Channel Loyalty Program - A vital piece of your business.
A channel loyalty program is a crucial pillar and a vital element in the growth strategy of your business. It is concentrated on building the connection between a brand and its business partners. This has become critical for a brand to succeed in a competitive environment.
Why do Businesses need it?
A Channel loyalty program is a compelling way to create dependable, enduring relationships with your stockists, dealers, influencers, resellers, and retail partners. They are critical for brands to remain in a cut-throat competition. The competition is stiff and multiple brands are competing for the attention of distributors, influencers and retail partners. A well-thought-through channel partner loyalty program can undoubtedly influence the enthusiasm, and urge the channel partners to recommend and sell your products and services. It can also uncover new sales and business opportunities, as well as help, get new partners that will help in building your distribution network.
A Channel loyalty program is a compelling way to create dependable, enduring relationships with your stockists, dealers, influencers, resellers, and retail partners. They are critical for brands to remain in a cut-throat competition. The competition is stiff and multiple brands are competing for the attention of distributors, influencers and retail partners. A well-thought-through channel partner loyalty program can undoubtedly influence the enthusiasm, and urge the channel partners to recommend and sell your products and services. It can also uncover new sales and business opportunities, as well as help, get new partners that will help in building your distribution network.
The pitfalls in running the Channel Partner Loyalty Programs
Winning the channel partner's loyalty is difficult but it’s not unachievable.
Winning the channel partner's loyalty is difficult but it’s not unachievable.
- The first and foremost pitfall most businesses do is concentrate massively on transactional and financial rewards.
- The second is that "a not so completely thought through loyalty program". Half-hearted stakeholder buy-in and zero awareness about the program. It’s recommended to have a dedicated person to monitor the Channel loyalty program and track the sales and revenue impact to the leadership team regularly.
- The third is that not tailor-making the rewards and incentives for each segment. One more important point to note is that businesses should have clarity about the action they want to encourage; it could be different for a distributor than a reseller.
- The fourth one is not attaching measurable goals like an increase in sales, revenue or higher market share to your channel loyalty program to ensure its success.
- The fifth one is the complicated construct of the program. The victory of the channel loyalty program depends on how impeccably we can weave into the routines of the partners. Right from the signup, earning the points to hassle-free burn via multiple options.
- The sixth one is that not taking advantage of the data and not tracking the overall health check of the channel loyalty program.
- The Seventh one is leaving it on 'Auto-pilot' mode. Most businesses treat channel loyalty programs as independent entities that can function on their own once it’s launched. Unfortunately, this leads to the decline and eventual failure of a program.