Distribution-led businesses have been running loyalty programs for decades. While a few companies are reaping good ROI on these loyalty programs, others still need to be made aware of how to make the best out of these loyalty and reward schemes. A reliable tech stack is a must-have for enterprises to experience the full benefits of a Digital Channel Loyalty Program.
A good tech stack or digital loyalty software ensures that best practices like regular communication and feedback, compliance with regulations, and real-time performance tracking are in place. In this article, we’ll dive into 5 benefits that enterprises have experienced with digital loyalty programs.
5 Digital Loyalty Program Benefits for Enterprises
A traditional loyalty program pushes channel partners to sell more products while a digital loyalty program works like a pull. It enables businesses to branch out expansion opportunities by collaborating closely with their channel partners, which was not possible traditionally. Channel partner loyalty programs backed by tech enable businesses to:
- Drive Loyalty
- Grow Organically
- Increase Their Basket Size
- Access More Control
- Gamify The Process
- Drive Loyalty – It is a competitive world out there. Not only there is a competition to win customers, but brands fiercely compete with other brands in securing the most loyal retailers, distributors, and influencers. Incentivizing your channel partners appropriately and exceeding their expectations can be a competitive advantage.Businesses strive to win channel partners’ attention with engaging loyalty programs. Thanks to the efficient tech stack which works as a catalyst for high-performing channel loyalty programs. Enterprise loyalty programs help businesses leap beyond the conventional rebate programs by including cash, and non-cash rewards. Also, such programs are designed only after thoroughly studying the needs, motivations, and capabilities of channel partners.
- Grow Organically – A well-planned enterprise loyalty program is like an alliance between your business and channel partners that operates on a give-and-take approach. Implementing a well-thought channel partner loyalty program can help you increase partner retention, and get loyal partners onboard in a shorter span. While you spend money to nurture relationships with your channel partners, your business also grows organically through them.
- Increase Basket Size – Channel partners help businesses expand to new geographies, introduce new SKUs in the market, and achieve their sales targets. During prime seasons, distribution-led businesses rely heavily upon distributors and retailers to capture market share and win customer’s trust. Attractive incentives motivate channel partners to make larger sales for the brand which ultimately increases the company’s revenue. This happens when businesses run personalized channel loyalty programs that take into account individual channel partner needs and desires. When consumers get more value from your products, they tend to buy more. Similarly, when channel partners experience value from the rebate programs you run, they tend to participate religiously.
- Access Control – The magic behind tech-enabled channel loyalty programs is that different departments can interact with the program in different ways. Additionally, businesses can launch a local version of the program if needed. With more access to controlling loyalty and reward schemes, brands can create local campaigns and rewards. Additionally, at an administrative level, different departments can have role-based access to maintain full control over the experience and content of enterprise loyalty programs.
- Gamify The Process – Traditional loyalty programs for channel partners lack the hook that drives loyalty, engagement, participation, and sales. To fill in the spots, gamified experience is the foundation of a digital channel loyalty program. When the process of completing targets is gamified, channel partners actively participate and set new benchmarks for sales targets. This in turn rewards the business with increased per partner revenue.
Integrating tech with loyalty programs has proven to be immensely beneficial to distribution-led businesses because they can now closely collaborate with their channel partners and come up with innovative deals and products based on data-driven strategic decision-making.
As lucrative as these benefits are, businesses must understand what type of loyalty programs suit them. Poorly structured loyalty programs are as good as not having any. To make the best of your partnerships with channel partners, build the kind of program that falls in their best interest.
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