Besides sales volume, companies should also focus on the long-term aim of sustaining the relationships they have established. They say, “you must spend money to create money.” Staying true to this statement, you can incentivize your top-performing partners once they reach their sales targets. Incentive programs can pivot from rewarding growth to retaining the talents that you can’t afford to lose.

To keep them, reward their commitment. Else, your competition might poach them.

Benefits

• Increases partner retention: Loyalty programs make partners feel valued, encouraging them to continue doing business with you.
• Attract new partners: A well-designed loyalty program may assist a company in attracting new partners. New partners can quickly join your partner program with points or discounts, helping you boost sales.

Challenges

• Market saturation: Many firms use comparable loyalty programs, making it challenging to retain your top partners. Developing a unique loyalty program based on competitive advantage is difficult.
• No control over partner leaving: Despite giving incentives, partners may want to leave because of circumstances that aren’t under your control. For example, they might be getting a better opportunity, network expansion, etc.

Example

Dell’s partner program rewards resellers for their purchases with benefits such as a loyalty program which provides an opportunity to earn marks (points) that they can exchange for e-vouchers against future Dell orders or co-branded marketing materials.

Implementing a point-based reward system may seem like a daunting task, but with Xoxoday it’s a cakewalk. Xoxoday integrates with a variety of performance tracking systems for enabling rewards and incentives. Explore Xoxoday integrations today!