The Importance of a Channel Partner Loyalty Program

Channel Partner Loyalty

Channel partners are that indispensable link of your indirect sale sequence that is responsible for driving a significant chunk of your business’ revenue. To ensure the smooth sailing of this aspect of sales, you have to have all your channel partners actively onboard. However, often at times accomplishing this feat is not as simple as it seems.

Like every other business process, this too has its own set of challenges that need to be overcome. But trust us when we say that it’s nothing too big that cannot be accomplished through a well-formulated loyalty program.

Rewarding channel partners is important. If you’ve never considered doing so before, here are 3 fundamental reasons to make you rethink that decision:

The Co-Marketing Objective

You as a business need to realise that you’re in this together with your channel partners. When they lose customers, you do too. A channel partner loyalty and/or incentive program can be used for mutual advantage here. Think collective marketing – where both your channel partner’s and your businesses are being promoted. Customised products are an inexpensive yet effective way of stamping this presence on the target markets. You pay for their promotion and they take your products and services to the target markets.

A Hint of Competition

In a situation where you have multiple channel partners, brewing up some competition between them can bring positive results in terms of indirect sales for you. An incentive where you reward with a cruise the channel partner(s) that brings the highest sales for you in a month can go a long way in encouraging healthy competition among the partners. They each may try to outshine the other in an attempt to win the reward. This “reward” or “incentive” could be absolutely anything that will motivate the channel partners to put in some extra effort for better results.

The Creativity Aspect

Rewarding your channel partners can encourage them to be more creative with their jobs. See, it’s not just about increasing the indirect sales of your product or services. The whole idea is to achieve that in the most optimal and profitable way. This is where, a little extra in the form of a channel partner loyalty reward such as a special bulk buying discount for the partners who’ve shown increased creativity and improvement in marketing your products or a small chuck of your overall marketing budget to help them further improve on what they’re already doing – will bring out the creativity.

It is important for businesses to realise that this relationship between the business and its channel partners is one that requires constant nurturing. It is a scheme that is mutually beneficial and every effort put into improving this relationship will only promote better channels for indirect sales.

Hence, it is important for businesses to develop robust reward and incentive structures for their channel partner loyalty. It’s a two way street – you have to give some to get some. When you show them you care about them and their business as much as you do for yours – things significantly change – for the better.

Do you have a channel partner loyalty program?
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This article has been provided by the creative team behind Power 2 Motivate


  1. Because channel partners are your company’s front end to the customer, rewards are a must, but it can easily turn into a money loosing machine. I’ve been in some large companies and saw that half of the partners brought 10% of the customer base, which was insignificant but encouraging for growth.
    Bottom line, reward if you can afford the investment.

    Good article.

  2. This is very enlightening, I totally agree that channel partners requires constant nurturing because without them you will struggle in business so it is a win-win situation. Then also giving incentives which can stir competition can yield great results indeed. I will definitely get channel partners for my business. Thanks

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