Why B2B Channel Loyalty Programs Are Evolving Beyond Rebates and Points
What Is Changing The dominant model for B2B channel loyalty programs over the past two decades has been the rebate or points accumulation structure: partners earn financial rewards based on purchase volume, which creates a revenue-linked incentive for purchasing behavior. This model is operationally straightforward and commercially intuitive. It is also increasingly insufficient as the primary engagement mechanism for channel relationships in markets where partner mindshare is genuinely competitive. What Is Driving the Change According to Demand Gen Report B2B Channel Loyalty Trends Analysis 2023 partner satisfaction with traditional rebate-based B2B channel loyalty programs declined from 67 percent in 2019 to 51 percent in 2023. The satisfaction decline reflects partners' growing expectation of business support alongside financial incentives. Partners report that the most valued elements of supplier relationships are business development support, co-marketing resources, a...