Loyalty Programmes & The Brands Acing It
Brands are creating a true partnership where they are aligning rewards to benefit both partner profitability and the brand's core strategic goals
Loyalty programmes – what are they and why do they seem to be all the rage? There are endless posts on LinkedIn and other platforms comparing things like credit cards, vouchers, passes and many more basis the type of rewards and cashbacks they are offering. While loyalty programmes have been in existence forever, there has been a seismic shift towards the importance given to them and the way consumer buying behaviour has been influenced by the quality of the programs, rather than owning or purchasing basis the ease of availability. The importance given to these programs can be highlighted by the fact, that today consumers are even ready to buy more premium options as they offer better rewards making them worthwhile in the large scheme of things. Brands today create programmes for all buyers and cater to all buyer personalities including age, spending capacity, urgency to buy and more.
Let’s deep dive to understand what these loyalty points are and why companies offer them.
Loyalty Programmes 101
At their core, loyalty programmes incentivise customers to continue showing their love for a particular brand. The more you engage with that brand as a customer and spend money on its products or services, the more points, miles, cashback, or other rewards you earn.
It's a simple but powerful concept - give customers a reason to keep coming back instead of straying to competitors. Once you've racked up a nice rewards balance, you get to redeem those hard-earned points for awesome perks like free products, services, upgrades, exclusive experiences, and more.
For companies, loyalty programmes are a wildly effective way to increase customer retention rates and boost profitability. Keeping existing customers is so much easier (and cheaper) than constantly having to find new ones. Plus, loyalty members tend to increase their spending once invested in a rewards program.
These programmes also provide a goldmine of data insights into customer behaviour. Companies can analyse loyalty data to understand shopping patterns, pricing responses, brand affinity and more. With those insights, they can personalise experiences, improve marketing effectiveness and make smarter strategic decisions.
However, implementing successful loyalty programmes requires a thoughtful, nuanced strategy tailored to your brand's unique customer base and partner ecosystem. It's not just a matter of saying ‘Join our programme, earn points’. There's an art to blending aspiration, value and exclusivity.
Top Channel Partner Loyalty Programs
For brands that sell primarily through third-party resellers and channel partners, keeping those partners loyal and invested is critical. Just like traditional consumer loyalty initiatives, these reward partners for behaviours that positively impact the brand.
Here are four examples of standout channel partner programmes:
PepsiCo
PepsiCo recognises the critical role retail partners play in its success, leading to the launch of the Pepsi Blue Club - an innovative loyalty platform rewarding partners and boosting engagement. The Blue Club resolves previous challenges like low participation, uninspiring rewards and cumbersome manual processes.
Channel partners earn points in real-time for every PepsiCo product sold, eliminating inaccurate record-keeping. The expansive rewards catalogue features over 400 options spanning electronics, appliances, and luxury travel experiences. Partners can conveniently browse detailed product information and redeem on the mobile-friendly platform.
Havells
The Sampark Loyalty Program by Havells is a reward program designed specifically for the company's channel partners. It aims to strengthen the relationship between Havells and their channel partners by offering them points for their purchases and encouraging them to keep Havells products at the forefront of their offerings.
Every time a channel partner buys designated Havells products, they accumulate points. The standard earning rate is 1 point for every rupee spent, but bonus points might be offered for specific products or promotions. The Havells Sampark App is the key to managing everything related to the program. Channel partners can register, update their profiles, and, most importantly, track their accumulated points through the app.
Action TESA
The Action TESA loyalty program is called TESA CONNECT, an app designed to reshape the landscape. This comprehensive ecosystem unites carpenters, contractors, channel partners, and influencers under one powerful platform. TESA CONNECT is more than just an app; it's a one-stop shop brimming with features that empower channel partners.
Streamlined, efficient, and powerful, TESA CONNECT cuts through the clutter, offering everything you need from influencer engagement and seamless payouts to enhanced analytics for Action TESA.
TESA CONNECT translates to maximised sales, with a platform designed to empower channel partners. This feature-rich platform boasts 18+ user categories, 50+ functionalities, and a thriving community of over 100,000.
Jio BP
The Jio-bp ‘RewardMeter Program’ is a one-of-a-kind loyalty programme specifically designed for truck and commercial vehicle drivers (bus, tempo, cab). By filling up diesel at Jio-BP stations, drivers can earn points on every litre purchased. These points can be redeemed for a variety of rewards right after their very first transaction. The program offers benefits like mobile and DTH recharges, e-vouchers, exciting gifts delivered to their home, and even a chance to win a bike or other prizes.
Enrolling in the program is simple and can be done with a one-time password on your phone. Additionally, you earn points regardless of how you pay, whether it's cash, card, UPI, or even a fleet card.
Conclusion
A common thread across all great partner loyalty programmes? They align rewards to benefit both partner profitability and the brand's core strategic goals. It's about creating a true partnership where everyone wins.
By offering a compelling mix of rewards, recognition, and development opportunities, you can create a program that fosters long-term, mutually beneficial partnerships with your channel network.
(The author is Abhinav Jain, Co-founder & CEO of Almonds AI)
