We often say that when you run a channel partner network, it’s as though you have two distinct sets of customers: your end customers and your channel partners.
You’re almost certainly not the only provider out there competing for your partners’ business and loyalty. So, why should they partner with you in particular? Even if they do choose to partner with you, they’ll probably partner with a couple of other providers too. Why should they favor you over your competitors?
A channel partner loyalty program can increase your channel revenue.
You probably already put a lot of effort into attracting new partners and signing them up to your partner program. That’s only half the battle, however. Once you’ve signed up a new partner, you need to make sure that they remain a partner, and find ways to encourage them to push your product or service over your competitors. Enter the channel partner loyalty program; a loyalty program specifically designed to increase your channel revenue.
First, choose between a breadth-based or a depth-based program.
According to Gotoclient, there are two main types of channel partner loyalty programs:
· The goal of a breadth-based loyalty program is to expand your channel by attracting new partners.
· The goal of a depth-based loyalty program is expanding your market share in existing partners and increasing their turnover.
In general, breadth-based programs require one-to-many communication and a set of standard rules and rewards that apply without exception across the board. In contrast, depth-based programs tend to include only a small number of selected partners, requiring a more tailored, one-to-one approach for each relationship. Which program style is best for your organization will depend on your particular goals.
Apply best practices for best results.
Gotoclient outlines some key best practices to follow when building your channel partner loyalty program:
· Embrace simplicity. Ensure that your program rules, goals, and expectations are easy for partners to understand and follow. Consider using an online portal or PRM system where partners can track their status.
· Communicate with your partners. Loyalty programs work best when partners are actively engaged, so make clear, ongoing communication is a priority. In addition, provide training if necessary.
· Track partners’ success. Track partners’ success rates to compare actual results against expected results. Adapt your program to improve problem areas and close gaps.
Set program goals and measurable KPIs.
Define a set of goals for your loyalty program, and make sure that they are specific and measurable. The nature of your particular goals will define which KPIs are most relevant for measuring success. For example, in a breadth-based program, partner registration rates would be a valuable KPI. Channel partner lifetime value or channel retention rates might be better KPIs for other loyalty programs.
Select participating partners and implement training where necessary.
Especially in a depth-based program, it’s important to carefully select which partners will participate in your loyalty program. Choose partners who have a good knowledge of your brand and product, show high commitment and engagement levels, and have capacity to increase current sales volumes. Offer additional product and sales training to participating partners for best results.
Offer partner incentives.
Check out our article, Four partner incentive programs for modern ecosystems, for a comprehensive look at incentive strategies that can be implemented as part of a channel partner loyalty program.
Use a Partner Relationship Management system to manage your channel partner loyalty program.
A good PRM system is an essential tool for managing an impactful channel partner loyalty program as it improves your ability to smoothly onboard, educate, and engage your partners. In addition, this article from Allbound recommends choosing a PRM system that allows you to gauge partner loyalty and engagement by tracking the following metrics:
- Portal login frequency
- Training starts and completions
- Content engagement
- MDF utilization and outcome
- Prospect page activity from both partners and potential customers
- Competition participation
Show your partners that you care about their success.
At the end of the day, the more successful a partner is, the more likely they are to stick around. At the heart of all your efforts to encourage channel partner loyalty and sales, there should be a clear commitment to supporting, guiding, and helping your partners. Let your partners know that their success is important to you, and deliver on your promises. A flourishing, mutually beneficial partnership will follow.
Set your partners up for success by giving them a new sales channel in the form of a private, eCommerce-enabled marketplace.
