5 real examples of best-in-class channel partner incentive programs
By: ITA Group
What you need to know
- Channel partner incentive programs can be a powerful tool to address market changes—if they’re done right.
- The best channel partner incentive programs combine segmentation, personalization and efficiency to boost engagement, sales and customer satisfaction.
- Lessons learned from industry examples and your own data can help you improve your program's ROI.
While evolving markets can challenge organizations and their partners, one thing remains consistent: channel partner incentive programs are a powerful tool to face changes proactively.
The best incentive programs are flexible enough to meet changing needs while aligning with overall business objectives. Whether you’re looking to increase sales, motivate middle performers, be more competitive in crowded markets or build loyalty within your reseller network, the right incentive solution creates measurable results.
What separates the best solutions from the rest? Innovative, data-driven strategies and a tailored approach to meet partners’ needs.
These five real examples of industry-leading channel partner incentive programs have proven their ROI in partner engagement, sales and customer satisfaction. Each provides key takeaways you can use to optimize your own program.
1. Improving stagnant sales
The challenge
A Fortune 500 financial institution was facing stagnant loan volumes across automotive, RV and marine dealerships. Top-performing dealers were overworked, and middle- and low-performing dealers weren’t engaged by the cash-for-contract incentive the institution had been running. Over three years, their loan volume per dealer declined so drastically that 52% of enrolled partners contributed no business. Leadership knew it was time for a new program.
The strategy
The new comprehensive incentive program used data to determine three main goals:
- Re-engage underperforming dealers
- Retain top-performing dealers
- Increase overall loyalty for all participants
They accomplished these goals by segmenting dealers into three earning tiers based on prior loan performance. Each tier was given a unique sales goal and tailored opportunities to help achieve them. Dealers were inspired by the attainable goals that still stretched their potential. New loans earned points that were tracked via a user-friendly platform, so dealers knew where they stood in the program. Custom communications and multimedia campaigns kept the momentum going while highly personalized rewards engaged participants.
The impact
- 254% ROI over 9 years of operation
- Enrolled dealers performed 95% higher than nonenrolled partners
- 89% of participants reported increased motivation
By changing incentive programs, the institution revitalized dealer relationships and achieved billions in increased loan volume.
Related: Dive deeper into how segmentation lead to this financial institution’s skyrocketing loan volume
2. Growing market share
The challenge
Driving channel partner loyalty among 14,000 sales reps while also expanding into new markets was no easy task. This global tech hardware manufacturer’s challenge was made harder by its outdated, manual program that frustrated partners. The effort to participate and lackluster rewards caused them to disengage. And it was starting to impact overall loyalty and the manufacturer’s ability to build market share.
The strategy
Their solution started by fixing the clunky old technology. A new real-time, tech-driven platform was designed to:
- Automate the sales claims process
- Offer customized reward catalogs tailored by location and language.
- Introduce gamification to make earning more fun
The scalable platform and reward catalogs allowed regional customization across 44 countries and translated communications into nine languages. The new claims process allowed instant reward approvals, which meant participants got their rewards faster and easier. Earning caps were removed to encourage unlimited participation. Restrictions were common in competitors’ programs, so this change brought huge new levels of engagement. The combined improvements elevated the overall partner experience, making it so they’d want to do business with the manufacturer before any others.
The impact
- 4:1 ROI on program investment
- 29% growth in submitted claims
- Significant increases in partner loyalty
By focusing on speed, personalization and the partner experience, this program created robust global growth.
Related: Learn more about how this manufacturer made it easier for partners to do business with them
3. Improving customer satisfaction by motivating service teams
The challenge
Lagging customer satisfaction scores. Disengaged service staff. No motivation to improve. A top automotive manufacturer found its customers were going elsewhere rather than using their authorized dealerships’ service teams. Existing incentives rewarded consistency alone without inspiring middle-performing (and underperforming) team members. Without program changes, those in the middle wouldn’t have a reason to change their behavior. They needed a push to motivate them to excel.
The strategy
Data analysts looked at years of program data to restart the service team’s engagement. Rather than consistency, the new program would focus on:
- Segmentation to tailor rewards for different dealer tiers
- Strategically timed promotions to elevate training and service goals
- New stretch goals aligned with customer satisfaction ratings
It emphasized how to improve the service team experience, which would in turn improve the customer experience. Supported by a flexible technology platform and real-time reporting, the manufacturer continually refined the program based on what was working. The new, relevant rewards, especially for completing training, motivated more partners than ever before.
The impact
- Improved customer satisfaction indices across nearly 900 dealerships
- Enhanced engagement among dealership employees, fostering better service experiences
By tailoring the incentive program to service staff, the manufacturer directly influenced their end customers’ loyalty and satisfaction.
Related: Discover more about the flexible technology and strategic segmentation behind this manufacturer’s channel partner incentive solution
4. Competing in a crowded market
The challenge
Referrals matter in crowded markets. The word of a trusted friend or family member means more than any ad a company might run. Faced with high customer churn, a leading telecom company knew incentivizing referrals would be essential. They needed a way to increase referrals from all segments of their business—employees, customers and channel partners—if they hoped to increase revenue and take back market share. The problem? Their current incentive lacked both a centralized system and a streamlined referral process.
The strategy
Working with ITA Group, the company:
- Developed a scalable referral platform to manage 5 audience types
- Automated referral workflows to improve efficiency
- Maintained program momentum with regular touchpoints
Tailoring earning structures by audience type allowed them to make sure each received meaningful communications and rewards. The highly customizable technology, with automated processes on the back end, made it easy for participants to get their rewards quickly. Plus, the updated process rewarded them for referring more people, creating a positive feedback loop.
The impact
- $2 billion in revenue from 1 million referrals
- 11:1 lifetime ROI
By streamlining the platform, improving the participant experience and automating processes, the company created higher-quality sales opportunities and incremental business growth.
Related: Find out more about how the telecom company used technology to create tailored experiences for multiple audiences
5. Increasing loyalty within a partner network
The challenge
Like many companies, this leading retailer in the building supply industry wanted to grow its market share and increase customer lifetime value. The timing, however, was tricky because they were in the middle of a market recession, with nearly 600 stores in 40+ states to manage. Brand leadership knew there was great potential in a contractor loyalty program to drive growth, so they engaged ITA Group’s experts to help develop a profitable and effective solution.
The strategy
The retailer decided on a strategy that focused on:
- Tiered award structures (e.g., trips or points) to balance rewards and encourage sustained engagement
- A tailored web platform with personalized views for participants, program managers and admins
- Ongoing data analysis to target the right segments, goals and award structures
- Consistent engagement through segmented, multichannel communications
The new award tiers encouraged sustained engagement among participants. Real-time reporting and on-the-go accessibility gave every participant access to program information when they needed it most. Because of the data capabilities, leaders could make confident decisions about how to optimize the program for the best results. This caused stronger relationships, new partnerships and broader brand awareness across the channel.
The impact
- $82M annual sales revenue average and $15M in annual growth margin
- 447% average ROI over the program's lifetime
- Increased purchases by targeted customers by 187% compared to nontargeted groups
By tiering their program and offering segmented, multichannel communications, the retailer has sustained year-over-year sales growth for over a decade.
Related: Get the full breakdown of how this program’s segmentation resulted in decades of sales growth
Key takeaways for building a best-in-class channel partner incentive program
Across all the examples, there are common principles that define the best programs.
- Segmentation: All partners, regardless of whether they’re top performers or ones who have fallen dormant, crave a relevant experience. Tailor your incentives and messaging based on partner performance tiers to ensure they get the right messages at the right times.
- Personalized rewards: Partners want to feel seen and appreciated. Offer rewards that resonate with your audience (e.g., culturally relevant options for global teams, a wide variety of reward options, unique experiences).
- Timeliness: Speed matters in incentives. Reduce the gap between performance and recognition by using platforms that enable instant rewards.
- Unified platforms: Streamlined processes help make the experience smooth for both participants and program admins. Consolidate your messaging and incentive management to make this easier and ensure clarity across multiple product lines or regions.
- Data-driven program adjustments: Nothing is perfect from the start, but your data will help you get there. It helps you adjust for any market changes so your program stays relevant. Continuously analyze redemption trends and partner behavior to refine your program and maximize ROI.
When executed correctly, channel partner incentive programs can transform how your organization engages partners, drives loyalty and increases revenue. What lessons from these best-in-class programs will you apply to your own program?
With these inspiring success stories in mind, it’s time to reimagine your incentives strategy. Our latest guide on selecting a channel incentive solution will help you ask the right questions to find your best incentives platform and provider.