Why Channel Partners Rewards Program is Necessary for Your Business?
Channel partner engagement program is one of the best business strategies for cohesive growth, increase in bottom-line & expansion.
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Why Channel Partners Rewards Program is Necessary for Your Business?
Channel partner engagement program is one of the best business strategies for cohesive growth, Strategic Relationship Management, increase in bottom line & expansion. It is necessary to have a solid foundation to establish your brand in the targeted market. To achieve these Channel Partners play a crucial role.
Who are channel partners and why should the company engage with them?
If you are a business that involves the manufacturing and distribution of products, you will work with companies or associates who will buy your product, stock them and market them to the local business.
C&F Agents, Distributors, Dealers, and Retailers all these different businesses are your channel partners who are part of your supply chain.
Having an aggressive approach only to push your products/services down the sales channels might be effective in some cases, but it doesn’t guarantee long-term sustainability and it won’t motivate any partners to go the extra mile to make your offers (Products or Services) to reach its final consumer in this present fierce competitive market.
Managing your channel partner is not an easy task with traditional rewarding approaches such as cash credit or discounts on bills.
To overcome this, companies do make a lot of effort to keep channel partners associated with their sales channels motivated and use B2B Rewards Programs.
If you consider it in the Pareto principle, roughly 80% of your results come from 20% of the cause. That means if you lose any two-channel partner you may lose eight loyal customers.
How to make a channel partner to be engaged with your sales channel and become a part of your business for a long time?
A rewarding channel partner is easy, as you can always give discounts in some circumstances. But it never adds any emotional values which make them feel like coming back to you in the future, in that case, your rewarding process should be kind of memorable and it should make them feel like they are an important entity to you. Giving away some gifts or vouchers in a while isn’t enough. You need to set a sort of rewards reward program where they can get motivated to promote your brand frequently and they should feel a kind of affinity or affection towards your brand.
Let’s review a case study on the Channel Partner Rewards Program to realize the full benefits of this initiative.
Our Client is one of the leading enterprises in the optical and optoelectronic industry. They wanted to organize a league for their channel partner such as opticians striving for excellence in their practice, where the company can reward them based on their performance according to the target set under various segments.
The idea was to make opticians a part of their business as valued partners and support them to succeed by connecting and rewarding the special group of opticians under one program.
Based on the above requirements of our client, we designed a comprehensive program that was implemented on our cloud with business connectors to the client’s ERP System.
Implementation Methodology
- L1. Rewards Cloud System was set up with integration to the customer’s ERP System and access to the partners was provided using a white-labeled micro-website.
- Partners could log in to the microsite using a secure login and access all transactional and redemption-related data in real time from any location.
- We integrated an online redemption catalog with one of the leading e-retailer’s for an easy and convenient method of redemption (Digital Redemption).
- Simplified targeted communication based on different tiers for highly effective communication with different segments of opticians such as Classic, Elite, Supreme, and Royal club
- Points get credited to the respective optician’s ECP account at the end of every month.
- Reward catalog for customers, which made it easy for customers to make a distinction of products mapped to the partner.
The Results
- Because of the league organized by our client, opticians started to promote the brand more than of the competitor, which resulted in sustained sales growth.
- The brand was promoted with an exclusive focus on customers’ products. That made them stand out among their competitors.
- L1. Rewards now act as a tool to grow business and customer base.
- They reduced the cost of marketing expenditures.
- L1. The rewards program has improved product performance and customer morale throughout the year.
- They have improved targeted monitoring among various segments based on different tiers. Now channel partners can be frequently alerted as to where they stand in their respective targets.
- Now they can easily analyze and take the action based on market insights generated through our L1.Rewards program.
Conclusion:
If we analyze the progress after implementing the channel partners engagement program it clearly shows that the approach towards rewards awards has changed a lot in recent years.
We feel that the most effective approach to keeping your channel partners engaged with your business is to organize a league under different segments and alert channel partners frequently on rewards points that are added to their rewards accounts.
Since you have a custom option to integrate products catalog along with various eCommerce websites for rewards point redemption, you not need to worry about vendors buying additional products for rewarding rewards points.
If you are thinking to boost your sales through a channel engagement program same as our clients, mail us at talktous@loylt.works for a demo. We can assure you of a custom channel engagement program that suits your business.
