7 Symptoms of Failing B2B Loyalty Program for Trade Partners

Loyalty programs for trade partners or also known as B2B loyalty programs have seen a significant surge in popularity in recent years.

From FMCG to financial sectors, companies across industries are leveraging these programs to recognize the efforts of their trade partners like distributors, retailers, dealers, sales canvasser, store owners and more, strengthen partnerships, and ultimately drive revenue growth.

When designed effectively, B2B loyalty programs can deliver substantial benefits to businesses. However, many programs fall short of their potential due to poor execution.

The Symptoms of Failing B2B Loyalty Program

As an important investment in business, you certainly don't want all the effort that has been put into creating and running loyalty programs for distributors and retailers to fall apart, right?

To help you take the right steps to rescue your loyalty program, first, identify the symptoms of a failing B2B loyalty program through this brief guide:

1. Low engagement

According to MIT Sloan, only about half of loyalty program members actively participate.

If the level of involvement of distributor partners or retailers in your brand loyalty program is low, it could be a sign that your loyalty program may have technical problems that prevent distributors or retailer partners from being active in the program.

Potential causes:

• Incentive schemes that are overly complicated
• Reward options that are unattractive or irrelevant to their needs
• Poor communication or lack of promotion about the program

2. No noticeable revenue increase

The ultimate goal of the B2B loyalty program is to encourage distributors and retailers to remain loyal and make repeat purchases, ultimately driving business growth.

However, if your program hasn’t resulted in a noticeable increase in revenue, this could be a sign that it needs optimization.

What to reassess:

• The process of earning reward points
• The sales targets set for distributors
• The appeal of reward options, such as gold bars, electronics, or vehicles

3. Your product is not on the front shelf

Every day, retailers and grocery store owners are approached by companies who want their products to be displayed on the front shelves.

If your B2B loyalty program is running smoothly, securing prime shelf space should be easier, as your distributors and retailers earn points for every purchase. The faster your products sell, the more frequently they will reorder and accumulate reward points.

However, if your products aren't visible on the front shelves, it's time to evaluate your loyalty program. Identify why distributors or retailers might be less inclined to stock your products prominently. Don’t forget to maintain strong relationships with your partners to keep the momentum going.

4. Low participation in exclusive events for channel/trade partners

You may have lined up exceptional speakers and organized exclusive events for your trade partners, but if sign-ups are low, there’s likely a deeper issue.

Whether it's distributors, retailers, or resellers, if they show little interest, this could be a sign of low engagement overall. It may also indicate that your loyalty program isn’t resonating as expected.

5. Declining earn-to-redeem rate

If you notice a drop in both the rate of reward point accumulation and redemption by members of your loyalty program, it’s a clear sign that your reward offerings need an update.

When partners overlook the available rewards, it indicates that they no longer see value in your program. This reduced engagement can also suggest that your distributors are not as loyal to your product as before. Worse, it may mean they are considering switching to your competitors.

6. Your loyalty app receives a low review/star

A poor rating on platforms like the Play Store or App Store can have several causes, but one of the main reasons is often poor user experience.

If your loyalty app is riddled with bugs or difficult to navigate, users will likely become frustrated, leave negative reviews, and may even start looking to competitors for a smoother experience. Ensuring your app is user-friendly and glitch-free is crucial to keeping your partners engaged.

7. Low motivation from your internal team

Focusing on customers and trade partners is important, but neglecting to engage and motivate your internal team can be just as damaging. If your team is disengaged or lacks passion, it will be difficult to run a successful loyalty program.

A loyal and motivated internal team is essential to delivering the best experience for your partners and ensuring the program’s success.

How to Revive Your B2B Loyalty Program

It’s always a good idea to revisit and refresh your B2B loyalty program for distributors or retailers before it loses traction completely.

Start by revising key aspects of the program, such as the process for earning reward points, the targets that must be met, the selection of rewards, and improving your communication strategies to better promote the program.

Additionally, consider partnering with a trusted B2B loyalty & reward platform like Tada. We offers an end-to-end solution that simplifies the process of acquiring new distributors, retaining existing ones, and providing a wide variety of attractive reward options.

Request a free demo today to discover how Tada has successfully helped major brands incentivize their partners through our comprehensive loyalty and rewards platform.