Doing indirect sales is one of the most common and profitable parts of the business. This is where Channel Partner Loyalty Programs come into play, and companies need to handle it well. It is very important to engage adequately with the channel partners to drive sales from them.
There are many such Partner Loyalty Programs companies partake in globally, like Singapore. And they manage to gain a lot of revenue out of it too, with modified business models, a good business incentives solution, and more. In this article, you would get a better picture of a Partner Loyalty Program in Singapore, and how it works.
What is Partner Loyalty Program?
The main detail about a channel partner is that they distribute the services and goods that the manufacturer produces. Indeed, these companies get into a commercial partnership and relationship with the producers. And they receive rewards in exchange for continued loyalty and business. This is, in essence, what a partner loyalty program is all about.
Moreover, companies adopt many types of channel partnership programs with their channel partners. Like, the channel partner sells their (vendors) products and services via an intermediary storefront. Also, your channel partner can directly sell or promote your products too. The third type of channel partnership occurs when the channel partners sell items with you, like in an up-sell manner.
All in all, most companies use these programs to get more sales and improve brand loyalty. They do so through support, training, and incentives. And to ensure the best productivity out of a program, it is important to plan it well and promote the brand regularly.
The Benefits of Partner Loyalty Program
There are different types of Partner Loyalty Programs available and they are all advantageous in many ways. These programs are useful for increasing revenue, selling products, bringing in new consumers, and more. For a better understanding of why the Partner Loyalty Programs work in Singapore, consider its benefits.
- To increase revenue
First and foremost, the Channel Partner Loyalty Programs give a great boost to revenue growth. Indeed, you would notice increased sales of services and products due to the help of the channel partners. This, of course, is helpful for each of the partner loyalty program participants. To clarify, the vendors would sell more things and gain profit from it. And their partners would also profit from the sales and grow their businesses.
- Showcase Expertise and Resources
Channel partners can use the various resources of the vendor owing to this program. Some of them are through market and product training, marketing assistance, technical support, campaign templates, co-opted funds, etc. Altogether, this improves their business condition.
- Improving the range of product and services
When creating a range of services and products, one should make sure that the quantity is enough for mass production. But, they all need to be well-made too, up to customers’ standards, cost-effective, and completed within time-limit. Plus the manufacturer also needs to make sure that they are using only the necessary amount of resources.
In this situation, too, channel partner programs are beneficial. Indeed, because of this, the partners can improve the range of items they are selling. Plus, they work together to meet the demands of the customer. And the joint effort ensures less time or money going to waste.
- Market Credibility
A lot of the channel partners, especially the new and smaller ones, gain better reputation when they partner with bigger vendors. The customers trust these brands more since they now associate them as reliable service providers. After all, bigger vendors would work with high-quality companies; so, they must be good.
So, the credibility of the channel partners improves in the market and they can cross-sell more too. Plus, they can also access particular licenses and certifications after gaining recognition as a trustworthy brand.
- Access to New Markets
Sure, Channel Partner Programs are great for growing revenue and improving sales. But, another benefit you would notice is that this allows the participating companies to enter new markets.
To elaborate, you as a vendor cannot reach into every customer pool, since you may not provide the services they are looking for. However, your channel partner may, and that would bring them in. Your partnership would prompt these customers to check out your offers too.
How to Reward your Channel Partners
The vendors can give a partner reward to their channel partners, for many reasons. Primarily, they do so to maintain their relationship, and also to motivate their partners to work more intensely. And the main things they focus on to choose the incentives they should give is their loyalty level and selling history.
Of course, you, as a manufacturer, can give various types of incentives when you realize that you should. It is a sign of appreciation and would also improve their relationship with you. Thus, you should create a personalized incentive program for them, like many companies in Singapore have.
Some incentives include featuring them on your website, giving your branded company items, or giving them a reloadable Debit Card. More specifically, you can give a percentage of the sale to them through such Digital Debit Cards. Using these, the channel partners can buy anything they want directly from the retailers. So, they would appreciate working with your brand more since they would associate this special reward with your company.
You can also give cash-related bonuses; though, personalized rewards are more of a norm now. Plus, you may also hand out vouchers and gift cards to them.
Furthermore, many brands customize their rewards more carefully, providing better choices to those who are most loyal. For this, they use AI tools to assess who are the best partners based on points and tier-ranking. Consequently, they can provide incentives, based on their performance and priority. It’s a tool to motivate others to work better too.
Other incentives you can offer include gifts, meals, city breaks, recognition awards, a personalized letter from the CEO, etc.
Overall, good Partner Loyalty Programs can help expand your markets, improve sales, and enhance a partner relationship. So, it is important to examine it seriously and create a good program in Singapore.