Some incentive programs are magnetic. The experiences feel valuable, and the partners feel valued. But when programs struggle to get engagement, let alone maintain enrollments, there are often clashing strategies doing more to repel partners rather than retain them.
We recently conducted a market insights study to understand how channel partners view program experiences and what impacts engagement. Based on hundreds of responses, we have insight into what’s really going on behind the scenes when participants leave their programs.
The Top Four Program Pitfalls to Avoid
Regardless of the mission, every partnership starts with a shared purpose: To create win-win opportunities. But when participation is a lift and performance is hard to measure, it could mean certain obstacles outweigh the original value prop.
So – what are the retention killers? We asked channel partners to explain.
Our survey revealed these four primary reasons for channel partners quitting programs:
1. Rewards were too hard to earn or took too long
This was the number one reason for incentive program dropouts, and it needs to be on your radar. Incentives are a great engagement tool, but they can also backfire if partners associate them with a never-ending chase.
The only rewards worth working toward feel reachable and proportionate to the effort involved. Partners don’t expect an effortless path to rewards, but they expect fair earning opportunities.
Finding the reward-challenge sweet spot is part science, part program design. Collaborating with a third-party team can be a big help here. These experts can assist with mapping the right behaviors to the right incentives so you and your partners get maximum value.
2. The communications and offers weren't relevant
Program communications can either help or hurt engagement. Partners don’t want messages simply reminding them your company still exists. They want clear updates that keep them in the loop and give them advantages in your program.
Personalized communications are the most effective. If your program’s offers and communications feel copied and pasted, partners’ experiences will, too. Create distinct partner groups to tailor communications, rewards and growth opportunities to the right individuals. This will make your opportunities feel hand-selected and boost partners’ interest.
You should also limit outreach to the essentials: product release information, supporting resources, program or company happenings that impact partners’ roles, progress or training notifications, earning alerts and specific action items.
3. Rewards weren't appealing
Our survey revealed that variety and choice matter most to partners regarding their incentives. But if competing programs are also aiming to speak partners’ language, you need to be fluent in their favorite reward types.
High-performing programs go beyond transactional rewards and relationships to write their loyalty story. By offering a mix of monetary and non-monetary reward types, programs give partners freedom and flexibility (i.e., ingredients for a rewarding, long-term partnership).
Let partners choose their own adventure in your program with various reward options, such as points currency, access-based or business-building rewards, solo or group travel experiences, or other personally meaningful options.
4. Rules weren't clear or were confusing
Rules aren’t usually exciting to most of us, but they are to channel partners. Earning rules are like a reward treasure map, helping participants know exactly how to navigate and what actions lead them to gold. The trick is defining rules that partners will be able to follow.
When we asked channel participants to describe their ideal program rules, their response was clear: “Very simple sales goals.” If partners can visualize their journey – and know they’ll be able to GPS it with things like progress trackers and clear updates from you – the benefits of putting your brand first will speak for themselves.
Does Your Incentive Program Have an Invisible Exit Sign?
Could these complaints be coming from your partners?
The best part of knowing program pitfalls is that you can avoid them AND do the exact opposite. Are rewards too hard to earn? Provide more freedom and flexibility. Do communications seem too generic? Personalize and provide regular progress updates. Are incentives not compelling? Add more variety to your current mix. Are the rules too confusing? Simplify them.
For your program to be a resource for partners where they know sticking with your business is in their best interest, engagement can’t be your only objective. You need to nurture the longevity of your partnership.
As you manage everything from the health of your partnerships to your program investments, remember that every critique is a chance to add value that will keep participants coming back.
