Channel Partner Retention
Offering additional value and recognition can secure current channel partner relationships for the long haul. This gives you the ability to fend off competitors on price alone with emotional connections.
Channel Partners are often the way to market, and there are initiatives available to brands to influence promoting your products.
Structured right, channel partners program can drive growth or you can reward their loyalty with a points based system.
Many B2B supply chains revolve around Channel Partners. They enable brands to reach their end-consumer and depending on your industry, would typically identify as wholesalers, distributors, retailers or resellers.
Achieving preferential standing amongst these channel partners can make or break your business’ chance of success.
With more than 73% of commerce happening through sales channels, incentivising partners has become standard practice since it hits two important business goals at the same time—building a strong relationship with partners and driving an increase in sales numbers.
They control the customer conversation and database, so finding ways to get your products promoted by channels partners is crucial.
By implementing a sales channel partner programs B2B companies can gain others benefits such as brand loyalty and better market position, all while keeping partners motivated to prioritise your brands over your competitors.
There are two primary levers available to brands when seeking to influence a change amongst your channel partners; you can incentivise the act of achieving growth targets within a set timeframe or reward their loyalty with an always-on points-based system. Each option has specific functions to solve specific issues plaguing your business:
Which is right for your business?
Our channel partner program design approach is “strategy first, rewards second”. We take the time to understand your sales channel and determine which model will work best with your business goals and objectives to solve your current pain points.
Offering additional value and recognition can secure current channel partner relationships for the long haul. This gives you the ability to fend off competitors on price alone with emotional connections.
Channel partner sales start at a certain baseline. Loyalty bonus offers and promotions can drive channel partner to increase frequency or new product. Building up from a starting point and gain growth.
Channel partner insights into your customers and how they engage with your business is a powerful outcome of channel loyalty programs. These insights let you speak to a large audience one-on-one.
Whether your business is after growth on top of last year’s figures or seeking a baseline with incremental gains, channel partner incentives with specific sales targets can encourage more sales.
Often channel partners need a reason to switch. If your product range is similar to competitors on price, quality and range, a target growth incentive can be the reason to change their share of wallet.
The width of a product range held within distributor or wholesaler programs is a critical element of sales growth. Implementing a channel partner incentive around high-margin product families is essential.
Set Strong Business Goals
Carrying out a channel sales program without a business goal is like sailing off without a map. Before delving into the specifics, it is crucial to set a business goal and plan strategies that will help achieve them as the first step.
This business goal should be data-driven, measurable, and attainable. Defining them upfront and communicating them effectively to all stakeholders will guide the program execution and ensure that it runs smoothly from start to finish.
Having this roadmap is imperative in establishing the program direction and success indicators. It will also help focus the attention on what matters most for the business and align the program to what is most beneficial for the partners.
Stick to Straightforward Program Mechanics
It is tempting to be creative when it comes to creating channel partner program mechanics. Avoid this at all costs!
Overcomplicating the mechanics of channel incentives not only discourages partners from participating but can also potentially create unnecessary confusion in implementation and forecasting.
Sticking to simplicity, is always recommended. It gives focus on the program, and it also assists your sales team selling the incentive program into the participant.
Laying out a straightforward model of how potential participants will earn their incentives, how they can monitor their progress, and how they can redeem their rewards can boost motivation to engage in the program.
Offer the Right Rewards
The rewards offered to relevant channel partners sales staff and business owners not only need to be valuable enough, they also need to be right and strategic. It may be easier to lean to the usual, but enticing incentives such as rebates or cash reward don’t always cater to the goals of the sales channel.
Cash as incentive rewards have the least emotional impact of all the rewards. Research continual points to offering real tangible rewards as they best way to create incentive engagement and outcomes.
Whether you land on merchandise, branded Visa reloadable cards or incentive travel. the channel partner earn rate must be given consideration. Aligning to the channel partner and their place in the sales chain is key.
Find the Perfect Timing
Getting the perfect timing is always important in marketing strategies. The timing of a channel sales program should consider your business sales cycles. Seasonal period, new product launches or model run out, key sales moment that the strategy can maximize.
Short-term incentives, channel sales programs or promotions can be beneficial in boosting new products, while long-term ones are most suitable for customer loyalty building giving partners consistency and something to look forward to, which as a result creates a good relationship with them.
Dates do matter. Is it a slow season, and the partners could use an extra push with greater rewards? Or is it a busy season, and simplicity and overall channel program achievement is more crucial, staying out of the channels partner’s way to focus on their business!
Measure Performance Metrics
Ensuring the success rate of channel incentive programs doesn’t end with setting the right objectives and implementing the ideal mechanics with valuable rewards. It is of great importance as well to measure performance with relevant metrics, analyse them, and outline recommendations on how to accomplish even better results.
Our continuous learning process and experience in B2B aligned industries have enabled our account management teams to deliver the formula for winning B2B loyalty programs, incentives and rewards programs in Australia and New Zealand.
Analysing results not only provides a clear overview of whether or not the campaign delivered the desired results, it will also set a benchmark for future sales partner campaigns.
Being well-informed of what works and what doesn’t through numbers and data can guide decision-making processes moving forward, creating benefits and addressing pain points for both the business and its channel sales partners.
Got questions about B2B incentive & loyalty programs, reward options or travel incentive & events ideas?
No question is too big or too small. We’d love to help you, whether that’s a potential B2B loyalty program design or a delivery of an engaging reward option. Give us a call or fill out the form below and we’ll be in touch soon.
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