Channel partner engagement is a priority among companies that rely on partners to distribute, market and sell their products. B2B loyalty and incentive programs are a great way to capture your channel’s attention and business. If channel partners feel more connected to your business, or more motivated by an incentive you’re offering that your competitors are not, you’ll see the net result in increased sales, often over a long-term run.
The Channel Partner Relationship
Channel partners can be amazing assets! Tending to this special relationship is critical to outshining your competitors in the same field. Distributors often carry competing product lines. Turning the attention to your brand can be tricky, but in the long run it’s very beneficial.
For our clients with distribution channels to consider, we’ve seen great growth when they’ve introduced a B2B loyalty or incentive program. Programs can reward partners for going through product or steps-to-the-sale training, in addition to increasing their purchasing and selling habits. When our clients help their channel partners grow their own businesses, a solid and loyal relationship starts to take hold, which pays dividends well into the future for both of them.
Tangible Channel Partner Contributions Worth Incentivizing
Loyalty and incentive programs are all about motivating behavior changes that positively affect your business. Your participants are rewarded for meeting new goals, which brings ongoing incremental sales increases to your business. How and why you motivate your distribution channel is critical to a successful relationship. Here are some reasons why you should consider implementing an incentive or loyalty program this year:
1. Market Expansion
Strategic partners offer market expansion into new geographic regions and customer segments. They can provide access to industry verticals without requiring a huge upfront investment. The goal here is growth. A channel partner’s established networks reduce barriers to market entry, thereby facilitating more growth in a shorter amount of time. Engaging with these new networks through a B2B reward program can help you find a foothold in a new territory.
2. Increased Sales
The basis of any loyalty or incentive rule structure is capturing increased sales. The equation is often very simple: Partner meets stated goal and they get stated reward. Loyalty programs reward from dollar one and often include tiers that correlate with amount of activity. Participants can level up or down depending on their ongoing purchasing habits. Incentive programs often have goals that stretch the normal behavior of a customer’s yearly purchases and rewards them for meeting or beating the stated goal after a predetermined stretch of time. Both programs’ rules need to factor in what will motivate the participant, while bringing in increased sales and gross profit.
3. Brand Awareness & Loyalty
When you’re one brand among dozens vying for the attention of distribution partners, offering an incentive program can be what shines a light directly on your company. Perhaps one of your competitors is running a group travel incentive to the Bahamas. Sure, it’s a great destination, but in your industry it’s a pretty common one. Offering a fresh new destination can turn heads to your program pretty easily. Adding in customer exclusive events or training throughout the year can also create engagement opportunities that become reasons channel partners choose to buy more of your products. Keeping your brand top of mind is a great way to increase sales and loyalty.
4. Product Launch
An incentive or loyalty program is a great way to introduce the latest and greatest! A product launch could add a bonus element to an existing program, or it could be the reason to start a program in the first place. Ramping up excitement is critical to a successful introduction. A short-term incentive can produce sales on day one. A long-term incentive can ramp up the rewards for increased sales quarter over quarter or year over year. New product training events and access to company executives are engaging elements that can help bring in sales immediately and set up a landscape for a beneficial partnership long into the future.
5. Product Focus
Some of your product lines might be more profitable for you than others. A B2B incentive or loyalty program is a great way to steer share of wallet toward the categories that have the best margins for your company. You can still reward on any sale, but by rewarding more heavily on certain skus, you can create more demand for the products that bring in the highest gross profits.
Plenty of Reasons to Reward with Channel Partner Incentives
If your channel partners are vital to your company’s success, you definitely want to explore the use of channel partner incentives to grab and keep their attention. For them, it shows how much you value their partnership. For you, it creates incremental growth potential on a continuous basis.
We have a library of information on our blog page regarding B2B programs, including the best rule structure elements, how to keep your program flexible and measuring ROI within channel programs. We are here as your resource from pre-launch through re-launch every year. Our experts at Motivation Excellence can discuss the best options for your particular situation. We look at your goals, audience, budget, and current and potential sales data, among other things to create a solution custom-built to your business. We know how to Inspire Extraordinary Performance with the people who mean the most to the success of your business. Let’s connect to get started!
