Digital technology transforming the channel loyalty solutions
Today’s modern world is ruled by modern technologies and trends. No business or industry at this time is keeping itself away from this digital transformation. Digital technology has made it very convenient for businesses to boost their sales, and launch marketing campaigns for their products.
Even the customers or channel partners are updated on the digital trends being followed in the industry. The availability of digital technology to each and every one has changed the dynamics of the marketing industry completely.
Not just the B2C, but the B2B industry is also following the digital transformation and has updated their channel loyalty solutions. Have a look at how involvement of digital technology has altered the channel loyalty solutions.
Channel Loyalty Solutions
In the B2B industry, products are made available to the customers via a complex string of various channel partners being involved. These channel partners play a crucial role in establishing the supply chain for the business. They are the direct link between the manufacturer and customer.
Just as businesses are rewarding and recognising the loyal customers, a similar trend is being followed with the channel partners. As these channel partners are the direct link for a customer for any business.
Here are some of the most common channel loyalty solutions being implemented over the time:
- Discount Coupons
Distributing discount coupons to the highest contributing retailer or channel partner is one of the most common practices being followed by companies. These discount coupons allow the channel partners to make purchases from either the same company or from a different one as a part of reward.
You can integrate My Choice of Gift from RewardPort and introduce online vouchers with a wide range of options to choose from and exciting deals.
- Free Gifts
Most common approach observed in the FMCG industry is distribution of free gifts to the loyal channel partners as a part of the channel loyalty solutions. These free gifts are usually merchandise from the company to further enhance their marketing and create brand awareness.
- Recognition Programs
Leveraging the digital channels, companies have started this trend to provide recognition on their digital platforms for the loyal channel partners and motivate them to give their best.
- Incentive
Offering incentives as a part of channel loyalty solutions is one of the traditional approaches that is being used even today.
Why use Channel Loyalty Solutions
One of the most common questions is why should a company invest in channel loyalty programs. The answer is quite simple here- to boost the sales and motivate the channel partners to make more sales.
Channel partners are one of the most important parts of the B2B businesses as they are the face of the company to their customers. They represent the companies, and can highly influence the buying habits of the customers by recommending them a different product.
Here are some of the most common benefits of using a channel loyalty solutions:
- Increased customer base
When a channel loyalty program is executed it provides an extra boost for the channel partners to increase their sales and hence they try to expand the customer base by recommending the specific brand to any new or old customer.
This indirect approach of increasing the customer base is quite effective as generally customers get influenced by these channel partners and tend to buy the products suggested by them.
- More product sale
To get the recognition or any other form of incentives from the company, channel partners try their best to make more and more sales by recommending the product to a large number of customers which increases the sale of the company and helps these channel partners to get their boost.
- Increased revenue
Expanded customer base leads to higher sales which results in increased revenue for the company. If the company is getting some amount of profit, the same is reflected for the channel partners.
Hence, having a strategic channel partner solution is crucial for the company.
- Brand awareness
When channel partners are motivated to make more sales and in return are getting some form of rewards or recognition it allows them to generate awareness about the brand and start putting some extra efforts to ensure higher sales.
- Motivation to channel partners
Channel loyalty solutions allow companies to provide channel partners an extra motivation to make more sales which is then reflected in the incentives or recognition that they are being offered.
- Better Marketing
Implementing a strategic channel loyalty solution allows the company to have an extra set of hands for marketing efforts. The efforts taken by the channel partners to market the brand and the product on a verbal level creates a bigger impact rather than the marketing campaigns run by the company.
Digital Transformation Changing Dynamics
As discussed above, digital transformation has changed the face of the industry and is still renovating the traditional practices in place. Adopting the digital transformation processes, businesses are making progress and embarking upon a new journey of exploring the market from a new perspective.
This has allowed businesses to run more marketing campaigns, on-board more channel partners, and offer better loyalty programs to channel partners and even to direct customers. A simple act of recognition or motivation goes a long way for the channel partners. If you want your business to have a strong customer base, maintaining a channel loyalty program is a must.
Below are listed few methods adopted by businesses for incorporating digital transformation in their channel loyalty programs.
- Reward Points
As an act of recognition, channel partners are awarded certain reward points that are credited to their digital profile. These points can be redeemed to buy from a selected catalogue and pick their own gifts.
This allows the channel partners to feel more valued and connected as now they can pick the items which they truly need, instead of getting some random items from the company which might not be useful for them.
- Financial Rewards
The world has made its transition to the digital world, and offering any financial rewards directly to the digital wallet of the channel partners is a much better and secure way of offering recognition.
- Premium Memberships
A lot of brands require you to be a premium member to avail their services, this can allow the channel partners to feel valued, and motivated. This enhances their working capacity, pushing them to work harder.
DigiFlix by RewardPort is one such program that allows you to offer your customers memberships of 50+ OTT platforms for their entertainment and make them feel valued.
RewardPort Channel Loyalty Solutions
With advanced technology traditional methods are also required to be updated as per the trends. This transition that this whole world is making from using the conventional approaches to now incorporating the digital portals and methods is changing the world.
This transition has not only made it simpler for brands to run their marketing campaigns but also allowed customers, and channel partners to have easy access to resources. To successfully complete this transformation, choosing the right partner for your business campaigns is necessary.
RewardPort is one of the leading loyalty programs solution providers to offer you channel or digital customer loyalty programs and increase the sales and revenue of your company. Get in touch with our experts today to integrate the best and customisable channel loyalty solutions in your business.
9 Types of Channel Partner Programs for Rapid Business Growth
Most of the successful B2B companies are investing more time, money, and effort in running and leveraging channel partner incentive programs. Some top companies even run multiple-layer channel partner programs to encourage different channel partners. As per a study, more than two-thirds of channel partners have reported that they have more choices in rewards and incentives than ever before. By running the right channel partner program for your partners, you can take your B2B business to the next level.
Apart from boosting sales, effective channel incentive programs also focus on improving partner satisfaction, boosting brand awareness, and achieving other business goals. If you are planning to start some effective channel partner programs for the growth of your company, you can consider the following programs:
1. Sales Performance Incentive Funds
SPIFs (Sales Performance Incentive Funds) are the funds that you offer your channel partners to encourage their sales teams. Your channel partner can use these funds to offer performance-based incentives to their sales team members when they achieve a specific target or perform extraordinarily. Offering SPIFs under your channel partner program can be extremely effective in boosting sales, achieving short-term goals, and driving sales during the off-season.
Some key benefits of offering performance incentives include staying ahead of the competitors, increasing sales momentum, and boosting sales for particular products/services. To make a SPIFs-based channel incentive program successful, you need to ensure that your channel partner’s sales team understands the incentives and the incentives are valuable for them.
2. Value-Added Incentives for Resellers
Value-added Reseller Incentives are the rewards or benefits that you offer your channel partners when they add some value to your existing product. The value addition can be done by the channel partner in any form. Anything that they do to enhance your existing product, such as adding an extra feature, integration, or offering additional warranty, etc, comes under value-addition.
As per a study, value-added channel incentive programs can help you increase the overall sales of your business by 6% to 9%. Running channel partner programs based on value-added incentives can have dual advantages for your business. Along with improving the value of your existing products or services, these programs help you boost your brand’s market penetration
3. Market Development Funds
Companies or manufacturers provide their channel partners with MDFs (Market Development Funds) to help them improve their marketing efforts. By offering MDFs, you can encourage your channel partners to run better marketing campaigns for your brand. This also allows them to put more effort into boosting your brand awareness. You can offer MDFs to increase the overall sales or to boost the sales for a particular range of products.
Marketing development funds, if used wisely, can be very effective in improving your brand reputation and staying ahead of your competition. For example, channel partners can use this fund to purchase radio advertisements, run offline/online marketing campaigns, organize webinars, and participate in trade shows.
4. Channel rebates
Rebates are a type of refund or cashback that the channel partners receive after achieving specific sales targets. Offering rebates under your channel partner program is one of the most effective ways to encourage your partners. When you offer some refund or cashback on achieving certain targets, they will definitely try to achieve the target by influencing their buyers and putting more effort into boosting your sales. The rebates percentage is not the same for every channel partner but it is decided on the basis of order frequency and other factors. They can earn the benefits and even transfer the same to their customers.
5. Deal Registration Incentives
Deal registration incentives are the rewards and benefits offered by vendors to their channel partners for bringing new leads. The channel partners need to close the deal before a pre-specified time period in order to receive the incentives. The more registrations they bring in, the more rewards and incentives they earn. Through a deal registration-based channel incentive program, you can reward your channel partners who play an important role in the success of your business and increase partner satisfaction.
6. Cooperative Incentives
Cooperative Incentives or Co-Op funding is another effective strategy used by businesses to motivate their channel partners. With these incentives, companies aim to encourage their channel partners to achieve their own objectives. You can offer cooperative incentives to your channel partners for their loyalty and regular purchases. All the actions performed by the channel partners that help you achieve your business objectives should be incentivized under a cooperative incentives-based channel partner program.
7. Loyalty Rewards for Partner Retention
Loyalty rewards, as the term suggests, are offered to loyal channel partners and are aimed at boosting channel partner loyalty. The aim of channel partner loyalty programs is to build and sustain long-term relationships with channel partners and encourage them to stay loyal. Under such programs, you can offer continuous rewards and incentives that are valuable enough to make your channel partners feel encouraged.
8. Training Incentives
You can offer training incentives to your channel partners in the form of subscriptions to learning programs, access to the tools they need for sales, etc. Everyone wants to grow their personal skills while doing a job. If you provide your partners’ sales team with an opportunity to learn more and more about their field, you can make them feel valued while encouraging them to increase sales. Provide them access to learning and certification programs, tools, etc, and reward them on completion of the training.
9. Referral Incentives
Referral incentives are also one of the most widely used strategies under channel partner programs. Under these programs, you incentivize your channel partners to bring more potential channel partners on board. B2B referral programs for channel partners work similarly to the programs that B2C brands run to attract more customers through referral contests.
Why Choose RewardPort as Your Channel Partner Program Manager?
RewardPort is one of India’s top reward and loyalty solutions companies. With low-cost rewards starting at as low as Rs. 10 and a team of experienced marketing professionals, RewardPort becomes the first choice for many businesses when it comes to choosing the right channel incentive management company. They have a wide range of reward options suitable for every business type. After understanding your business objectives and channel partners’ requirements, RewardPort can help you run the most effective channel partner program.
Frequently Asked Questions: -
Channel partners are the resellers, agents, vendors, retailers, or service providers that tie up with a company to sell their products and services. They help businesses in increasing their market reach and boost the overall sales.
Channel partners are paid on a commission basis. The more revenue they generate for a company, the higher commissions they receive.
Having potential channel partners can benefit your business in many ways. They can help you expand your customer base, boost sales, promote your products, and make your marketing campaigns more successful.
5 Critical Motivational Drivers for A Successful Channel Partner Program
Channel partner programs aim to motivate and engage channel partners to build more value for customers. Channel partnerships, when strong enough, can bring incredible growth to your business that could not be possible otherwise. Onboarding the best potential channel partners is fine, but how do you ensure the success of your partnership?
Zoom, the leading video conferencing platform, drove over 70% of the company’s growth through channel partners during Covid Pandemic. It was possible due to their channel partners’ referral program. This is how well-structured channel partner programs can make your partnership a success.
A channel partnership should be mutually beneficial. With every additional year of partnership, it becomes stronger and adds more value to your business. Therefore, it is essential to keep your channel partners motivated and loyal for a longer period.
What is a Successful Channel Partner Program?
A Successful channel partner program ensures that you and your partner are on the same page. Along with boosting your sales, it should add value to your B2B customers and end users. Motivation plays a significant role in keeping your partners committed. Most businesses believe that the commission they pay to their channel partners is enough to motivate them. They are mistaken here.
Consider your channel partner as your additional sales team. Put in every possible effort to make them perform splendidly. You need to invest money, time, and effort in your channel partner just like you invest in your internal salespersons. The efficiency and profitability of your channel partners depend on their lifetime value. To increase their lifetime value, it is essential to keep them encouraged.
Motivation is a principal factor for a successful channel partner program. It helps a business utilize its partners to the maximum. Here are the top 5 motivational drivers for channel partners:
1. Money & Rewards
Money is the most common factor of motivation for every business. To keep your channel partners motivated for a long time, you must invest in them. Make sure that your investment is in correspondence with the efforts your partners put into your business.
The best way to use money as a motivating factor is to help your partners reduce their marketing costs. You can do it through joint funding for advertisements, joint ventures, etc. Don’t just throw money at your channel partners. But also ensure that you can measure the impact of this money.
Investing in your channel partners is the greatest way to make them feel valued. Don’t think of this investment as your loss. Partners who are valued become loyal and loyal partners can bring incredible growth to your business. Adding rewards or incentives to your channel partner program encourages your partners, even more, to perform better. RewardPort, being the top rewards company, can help you build the perfect reward/incentives program for your channel partners.
2. Access to High-Quality Sales Tools
Most businesses do not provide their channel partners with high-quality professional sales tools. As channel partners are also driving sales to your business, you must offer them the same tools that your internal sales team has. If your channel partner is selling your products in new innovative ways, you might need to support them even more than your direct sales team. Make sure to provide top-quality selling tools, such as competitive data sheets, sales scripts, testimonials, usual brochures, etc.
Your products should be convenient for them to sell. Let us understand it with an example. Suppose company A has two channel partners named B and C. A must go to 10 places to sell B’s product and only 2 places to sell C’s product. Which one would company A prefer? It would be C’s product.
It’s not about going to places, you just need to understand how a complex system can make the task difficult for your partners. Sales tools are necessary but not enough. You must also provide the necessary sales support to your partners. Make sure that they can contact your qualified staff whenever they have some technical or other issues. To get the most out of your channel partnership, you need to put in the maximum effort.
3. Education Programs and Certifications
Everyone loves to learn while earning and so do your channel partners. Education programs that provide theoretical knowledge and practical skills to your channel partners can be extremely motivating. You can design education programs that give your partners a thorough knowledge of your products/services.
These programs can include texts, videos, presentations, etc. To make these programs interesting, you can add challenging tests in between. This ensures that your partner is aware of your product’s features, and they can answer any question asked by the end customers. But how do you encourage your partners to enrol in these programs? Just add some relevant incentives to it. RewardPort can help you build an incentive program that rewards your partners for achieving different milestones under your education program.
Adding certifications to your program can make it more exciting for your channel partners. Just make sure that the certification is interesting, but also challenging at the same time. It is important to give your partners a sense of pride when they complete a certification. Many companies keep such certifications as one of the eligibility requirements for their channel partners.
4. Happy Customers
It makes your channel partners happiest when they get repeat customers because of your product. For this, you need to make sure that your end customers always love your products or services. Happy end user means happy channel partner and consequently, happy you. It can be one of the biggest motivating factors for your channel partners.
5. More Leads
Passing on qualified leads to your channel partners also acts as a great motivating factor in a channel partnership. You need to understand your customers first. Understanding the interests of your customers helps you devise a better marketing plan. When your partner gets more qualified leads from your business, they automatically are motivated to stay loyal to you.
Benefits of a Successful Channel Partner Program
A successful channel partner program ensures stronger partnerships, which further has several advantages as follows:
- Expand your brand’s reach as you also get access to your partner’s customer base.
- Generate more qualified leads.
- Reduce customer acquisition costs as your channel partner is also promoting your product.
- Boost your revenue with indirect sales.
- Strong relationships with customers you get through your channel partner.
Rewards for Your Channel Partner Program
It is completely sensible to incentivize your channel partners’ efforts toward your business growth. Appreciating your partners for their commitment encourages them to stay loyal to you and perform even better in the future.
RewardPort can help you build a channel partner loyalty program keeping in mind the best practices. RewardPort makes your channel partner programs more engaging with gamification. Additionally, your long-term channel partner programs need continuous monitoring to stay updated for new situations.
Continuous improvements allow your channel partner program to remain relevant and ahead of the competition.
Frequently Asked Questions: -
A channel partnership is an initiative where two businesses come together to sell each other’s products and services along with their own. There are many benefits of becoming a channel partner as listed below:
- Generate more qualified leads for your business and increase conversion rates.
- Reduce marketing costs.
- Reduce customer acquisition costs.
- Expand your market reach through channel partners.
The requirements for becoming a channel partner can vary for different companies. You can identify suitable companies and approach them to become their channel partner.
You can start by identifying the relevant brands/businesses and understanding their requirements for channel partners. Also, various brands often launch channel partner schemes you can participate in.
5 Channel Partner Loyalty Programs You Can Start Today
The secret to success in a cut-throat retail market is to shift a brand’s relationship with its trade partners from a strictly transactional one to one that is more humane. Designing a mutually beneficial scheme and incentive structures, maintaining swift and reliable two-way communication, transparent pay-outs, and fostering emotional connections through customised rewards and experiences are the most crucial aspects of this partnership.
RewardPort considers all these criteria as it builds and manages the ideal loyalty programs using our knowledge across industries.
To strengthen ties with the proper channel sales partners and to execute the perfect channel partner program the right channel loyalty platform is crucial. Our loyalty solutions are built with advanced features. With our assistance, you may inspire your resellers, distributors, and dealers and maintain their lifetime interest in your brand.
Our features are enlisted below:
Low-Cost Rewards with a Rs. 10 Start
You will receive high perceived value rewards that begin at low expenses for channel partner programs.
A Variety of Awards
We provide a tempting variety of goods and services in the following categories: experiences, health & wellness, entertainment, travel, physical goods, and at least 15 more.
Last Mile Delivery
Pin codes are provided throughout India.
Served by Own Cannels
Channel partner programs can be delivered through a variety of channels, such as online, offline, app-based, SMS-based, and web-based.
Options for Instant Rewards
Everyone enjoys rapid satisfaction, and there are many options available.
Options for Digital Rewards
Choose from digital incentives including OTT platform coupons, e-learning credits, home exercise and yoga apps, and more.
Curated Rewards According to Style
Rewards are chosen to fit your target audience’s lifestyle and to significantly improve their day-to-day experience.
Platform Technology
Gamify your programmes with fun features like a virtual lucky draw, a digital scratch card, and more.
Program Based on Tiers
For dealers and channel partners, you can run a well-designed tier-based program that encourages participants to accrue more points and claim more prizes.
A Relationship that Involves all Stakeholders
- Emotional: We consider the feelings of dealers and channel partners and communicate with them.
- Financial: We make sure that the channel partners eventually reap financial rewards.
- Rewarding: Programs are made to guarantee that channel partners and dealers are rewarded for their devotion.
Types of Campaigns That Can Be Executed
Retailer Program
The retail sector is rapidly evolving. They have a lot of information to learn and a lot of things they need to do. Whether it’s keeping up with the most recent developments in omnichannel retail, interacting with their most devoted followers on social media, or comprehending how technology and mobile are reshaping how businesses accept payments. For your retailers, RewardPort develops programs to boost their performance.
Dealer Program
A dealer program is an internet marketing campaign where we, the manufacturer, and your dealers are the focus. This implies that B2B marketing specialists assist your dealers with their B2B web promotion. Increasing the demand for your items at your dealers is the goal. So, this solely applies to your items. We continue our B2B-specific marketing initiatives in the interim.
Recognition Program
Employee motivation programs encourage workers to perform well by rewarding them for their effort and commitment. They are intended to uphold high standards of conduct, give staff encouragement, and feedback, and recognise significant accomplishments in public.
Channel or Trade Loyalty Program
A long-term organised incentive program to give trade partners more financial rewards is known as a trade or channel loyalty program. It is a potent method for creating devoted, lasting bonds with trade/channel partners like resellers, dealers, etc.
Influencer Loyalty Program
Keep current influencers enthusiastically committed to supporting your cause. Influencer loyalty programs will help you recruit and retain influencers and create a troop of them for your promotional needs.
This partner program grows stronger when you develop a unique channel for the influencers and gather data over time. Utilise influencers to connect with a growing client base.
Conclusion
Channel partner programs help you maintain a motivated and happy army of business partners. RewardPort is a rewards platform which can help you start your desired channel partner program quickly and as per your budget.
RewardPort’s modern approach to incentives allows you to target the younger generation of channel partners more easily. At the same time, you can also monitor and track the performance of your incentive program.
Related Article: How to choose the right loyalty partner for your brand?
Frequently Asked Questions: -
Yes, you can refer prospects to your partner's website. A prospect can be anyone, i.e., your existing customer, business partner, or client, and referring prospects is one of the best ways to generate more leads for a particular website. As per some studies, leads get generated five times faster through referrals.
The time or commitment required to participate in a partner program is not fixed, but it varies depending on several factors. The more committed you are, the higher your revenue projections.
There is no direct fee charged for becoming a partner, but there might be an annual membership fee associated with every plan. So, the cost to become a partner depends on the plan you choose.
The length of a partnership agreement depends on how strong the partnership is. It can be as low as one year for some partners, whereas for others, it can go up to three years or even longer. It depends on what plan you choose and how often you want to get it renewed.
Why Do You Need Digital Rewards for Channel Partners’ Program?
The world is becoming more digital. Digital has gained an influential position with consumers of almost all sorts whether it is business-to-consumer goods or business-to-business transactions. Businesses must embrace digital to keep up with the market trend and consumer growth. This includes not only posting their information online but also digital engagements in the form of rewards to aid in the success of their incentive programs.
What are Digital Rewards?
Digital rewards are incentives delivered via an encrypted link or QR code to motivate behavioral outcomes and increase engagement with a specific audience. Digital rewards provide incentive program managers with a variety of delivery transfer options as well as real-time reporting and analytics.
This type of reward is typically available instantly, is simple to use, and the redemption process is encrypted to ensure a secure transfer to the qualifying participants.
What is the purpose of a digital rewards platform?
A digital rewards platform is one way a company can adapt to the digital age. It differs significantly from traditional rewards marketing, which employs physical rewards such as vouchers or coupons. Physical rewards are limited in versatility and convenience, and they can be misplaced, torn, or lost.
A digital rewards platform improves customer retention as well. It provides a reason for customers to be loyal, and loyal customers are good news for any business because they spend up to 67% more than new customers. It even allows for referrals, as customers can be rewarded for telling a friend about your company.
When to Use Digital Rewards Platform?
Consider what your company could accomplish with a digital rewards platform. It is beneficial not only to cultivate customer loyalty, but also to anyone with whom your company is involved.
If your company has:
– Distributors located across the country, hundreds or thousands of kilometers apart, can be easily rewarded when they meet their targets.
– If you have a large number of branches or thousands of employees, you can instantly reward them on their birthday or working anniversary.
– With many clients spread across the country, you can reward the VIP client group.
Why Are Digital Rewards Beneficial?
Everyone in your channel partner incentive programs has one thing in common: they don’t want to wait to be rewarded. Your incentive program participants will have to wait, sometimes for several weeks, from the time they redeem their reward to the time they receive it. This is typically the case with merchandise, mailed prepaid cards, or checks.
Virtual gift cards and virtual prepaid cards do not have this issue. Considering the demographics of your channel partners you can choose the appropriate reward options for them with RewardPort. Few of the popular reward options are:
- VacPac for vacation packages
- AirPac for air travel benefits
- Sweepstakes with multi category rewards
- Cine Rewards
- Free Bucks for direct cash benefits
To offer digital rewards properly for your channel partner incentive programs or others, you will need a few things, including the right reward options, a good reward management system, and incentive management software.
How Can You Put Digital Rewards to Use?
Digital rewards are frequently used in incentive program schemes such as instant win games, sweepstakes, point accumulation, and code redemption programs. They are intended to persuade customers to perform an action or engage in a qualifying behavior. After completing the action, the participant receives points, a token/code to redeem in a game or a reward product. It’s straightforward and effective.
- Review participant engagement regularly to ensure that they are reaching their full potential
- Change the mechanisms for delivering rewards based on program and participant preferences
- Be careful not to appear spammy by being overly enthusiastic in communications and notifications
- Ascertain that your program has well-thought-out scripts and touchpoints
The rewards available through this digital process include name/brand gift cards, prepaid cards, merchandise, and experiential opportunities. The participant begins the process by receiving a text, email, or completing a scan or form. The digital component of the process connects the reward to simplified reward issuance and real-time reporting.
When it comes to engaging your participants, the possibilities for types of rewards associated with the digital process are limitless and working with the right technology provider ensures a frictionless redemption process. What incentives does your company have to offer?
Frequently Asked Questions: -
Each digital loyalty card is associated with a customer's online account. Unlike physical loyalty cards, which require brands to manually record every transaction and offer, digital cards save time by allowing for instantaneous changes.
Yes, in most cases, as long as you don't have a balance and the annual fee (if any) is less than the value of the rewards you earn each year. In any case, knowing how to get the most out of your rewards credit card is beneficial.
Gift Cards are purchased as "cash value" items for the purpose of gifting. While reward cards are intended for customers to earn points and redeem reward offers.