For brands functioning through a channel network, growth is more than simply acquiring new customers. Distributors, dealers, retailers, resellers and other channel partners all influence market reach, product availability and sales performance. However, many companies continue to use transactional incentives to sustain these relationships. 

A B2B loyalty program can help a business drive repeat purchase, improve partner engagement and build a stronger distribution network. The key is to make participation less complicated by introducing simpler engagement, practical and meaningful rewards, and making the program performance measurable. All research quoted in this blog point to a clear challenge that channel partners want more than incentives. They also want growth opportunities, smooth operations and an environment in which their contribution is recognised.

• 46% of companies surveyed for Benepik’s Channel Partner Loyalty: Trends & Challenges Report 2025 reported low channel partner engagement. 

• 49% of distributors in ‘KPMG’s India CX Report 2025: FMCG’ could switch to brands that offer better opportunities for scalability. 

• 42% of companies in ‘Benepik’s Channel Partner Loyalty: Trends & Challenges Report 2025’ identified complicated reward redemption as a channel loyalty challenge.  

B2B relationships have longer sales cycles, repeat orders and multiple stakeholders. A dealer can decide what products to promote, a distributor can impact the availability of the product and a retailer can affect the final purchase decision.  

Thus, incorporating partner engagement into a company’s growth strategy.  

Incentive alone might not cover reasons for partner disengagement. If rewards are hard to redeem, communications are sporadic or partners cannot see how their efforts translate into benefits, programs can lose relevance.  

Benepik’s Channel Partner Loyalty: Trends & Challenges Report 2025, covered by The Economic Times in July 2025, found that 46% of companies struggled with low channel partner engagement. The reported causes included complicated redemption processes, poor communication and manual incentive management. 

These findings suggest that a B2B loyalty program needs to address the entire partner experience, from enrolment and earning rewards to tracking progress and redeeming benefits.  

Source: The Economic Times – Benepik’s Channel Partner Loyalty Report 2025

Several findings from recent research help explain why B2B loyalty programs need to move beyond sales incentives. 

According to Benepik’s 2025 channel loyalty report, 46% of companies reported low engagement from channel partners. 

The results indicate a practical problem. Companies can spend a lot on incentives and still struggle to engage partners if the program is hard to understand or use. 

For businesses considering B2B loyalty program software, usability, communication, visibility of incentives and integration should therefore be part of the assessment, not afterthoughts. Distributors value growth opportunities, not just satisfaction 

‘KPMG’s India CX Report 2025: FMCG’ highlights the connection between distributor experience and retention. 

The report states that: 

• 49% of distributors might discontinue working with FMCG brands if their expectations are not met, with scalability opportunities influencing their decisions. 

• 48% of distributors feel undervalued when brands overemphasise transactional activities rather than relationship-building. 

• 32% of distributors are affected by misalignment in promotional schemes and stock norms during onboarding. 

• 20% of distributors are influenced to invest more in an FMCG brand by ease of operations. 

This is why a loyalty programme should not operate separately from the wider partner experience. Incentives matter, but so do transparent schemes, efficient processes and opportunities to grow the business. 

#forward moving trends. 

The Channel Loyalty Report 2026 by Almonds Ai reports that 51% of channel partners are enrolled in six or more loyalty programmes yet actively engage with only a few. 

For brands, this signals a shift away from simply launching more schemes. Channel partners need clear communication, relevant incentives, transparent reward processes and reasons to keep participating. A loyalty programme should make it easier for partners to understand available schemes, track their progress and see the value of engaging with a brand. 

Source: Almonds Ai – Channel Loyalty Report 2026

A B2B loyalty program can reward purchases, performance or progress against agreed targets. The aim is to give partners a clear reason to continue engaging with the brand.  

A B2B loyalty program which is well structured can help businesses communicate targets, explain reward eligibility and recognise partner contributions. Segmentation is another way to create different engagement approaches for dealers, distributors, retailers and other partner groups.  

Businesses can recognise participation in training, product knowledge initiatives, new product launches, surveys or other activities. This help brands engage partners at different stages of the relationship, rather than communicating only at the end of a sales period.  

B2B loyalty program software can help centralise programme rules, campaign management, incentive calculations, partner activity and reporting. Depending on the platform, integrations with existing business systems can also reduce repetitive work and improve visibility. 

Partner segmentation can help businesses set appropriate targets, communicate relevant benefits and identify areas where additional support is needed. Mobile-friendly access can also make programme information easier to reach for partners who are not regularly at a desk. 

Businesses should measure programme activity alongside commercial indicators and compare results with an appropriate baseline. 

Useful measures include partner activation rate, active partner rate, repeat purchase rate, incremental sales, average order value, reward redemption rate, cost per active partner, return on investment (ROI).  

Benepik’s Channel Loyalty solution brings together the tools businesses need to manage partner engagement, incentive programmes and rewards. From partner verification and scheme publication to incentive calculations, reward delivery and performance analytics, these capabilities help streamline programme operations and support stronger relationships with distributors, retailers, resellers and other channel partners. Benepik’s key capabilities include: 

• KYC Verification: Support partner verification as part of the programme onboarding process. 

• Scheme Publication: Publish incentive schemes and communicate programme offers to channel partners. 

• Instant Rewards: Enable timely rewards to recognise eligible partner actions and achievements. 

• Diverse Rewards Catalogue: Such as shopping, fashion, grocery, travel, lifestyle and health, alongside cashback, UPI and bank transfers, electronics, white goods and experience-based rewards. 

• Campaign Management: Organise and manage channel loyalty campaigns. 

• Incentive Calculation: Structure incentive calculations based on programme rules and performance. 

• Leaderboards: Track partner rankings and encourage engagement through performance visibility. 

• Real-Time Analytics: Monitor programme activity and performance through analytics. 

• ERP & CRM Integrations: Connect loyalty programme workflows with existing ERP and CRM systems, where supported. 

For businesses assessing a channel loyalty solution, the next step is to map these capabilities against their own requirements: which partner groups need to be engaged, what behaviours should be encouraged, how rewards will be calculated, and which business outcomes should be measured. 

Explore Benepik’s Channel Loyalty solution to understand the programme approach and available capabilities. 

For more context on common engagement problems in Indian distribution networks, read Channel Partner Loyalty Programs: Why Indian Distributors Disengage and How to Fix It

B2B loyalty works best when it is treated as a business strategy rather than a reward distribution exercise. Research from India highlights the importance of partner engagement, clear communication, operational simplicity and opportunities for growth. 

For B2B businesses, the opportunity is to create programmes that partners can understand and use and that the business can measure against meaningful commercial outcomes. 

Explore Benepik’s Channel Loyalty solution to see how a structured approach to partner incentives and engagement can support your business goals.