National Insight

Gurugram (Haryana) [India], July 23:In today’s dynamic business landscape, where distribution networks drive competitive edge, loyalty programs are undergoing a much-needed transformation. Benepik’s latest report, Channel Partner Loyalty: Trends & Challenges Report 2025, sheds light on how India’s leading brands are evolving their loyalty strategies to tackle rising expectations, digital disruption, and operational complexity.

Despite the growing focus on loyalty, nearly 46% of organizations still struggle to engage their channel partners effectively. Complex redemptions, outdated communication methods, and manual processes continue to dilute the impact of loyalty efforts. However, the report also reveals a strong movement towards holistic channel partner engagement, a model that blends tech-enabled personalization, role-specific targeting, and real-time communication to drive stronger, more sustainable outcomes.

Brands that have adopted partner segmentation and mobile-first loyalty solutions have witnessed measurable success, reporting up to 60% improvement in ROI. One of Benepik’s clients from the auto ancillary sector even recorded a 3.5x increase in Channel Partner engagement within 90 days of restructuring its loyalty framework.

Unlocking Loyalty Beyond Transactions

The report draws on insights from a diverse mix of sectors including FMCG, Auto Ancillary, Agri-inputs, Pharma, Construction Materials, and BFSI. The findings make one thing clear: traditional, one-size-fits-all loyalty programs are falling short. In contrast, forward-looking brands are building loyalty ecosystems that prioritize personalization, digital enablement, and ongoing engagement.

“This study highlights a clear misalignment between loyalty program design and what truly drives channel partner motivation,” said Saurabh Jain, Founder-Benepik. “The opportunity lies in rethinking loyalty not as a reward system, but as an ecosystem strategy that fuels growth, trust, and long-term advocacy. What makes this report truly comprehensive is its inclusion of perspectives from both organizations and their channel partners, offering a 360-degree view of the loyalty ecosystem.”

The Loyalty Gap: Friction Points That Undermine Impact

Despite recognizing loyalty’s strategic value, many programs are held back by executional challenges. The top issues reported include:

• Complicated redemptions (42%)
• Ineffective communication (38%)
• Manual processing (33%)
• Lack of system integration (31%)

These friction points erode trust and lower program adoption. As Saurabh Jain notes, “Redemption is the moment of truth in any loyalty journey. If it’s slow, unclear, or delayed, it erodes partner trust instantly.”

Segmentation and Personalization Are Driving Results

Organizations that have moved to segmented programs tailored by partner type be it dealers, mechanics, retailers, or field staff are seeing far better outcomes. Role-specific targeting, combined with real-time dashboards and mobile accessibility, is helping brands deepen engagement even in rural and semi-urban regions.

Echoing this shift toward inclusive loyalty, Ratnesh Mishra, GM-Spares & Allied Business at Atul Auto, emphasized the value of consistent, ground-level engagement: “We reached beyond dealers to mechanics and incentivized consistently, not just quarterly. It helped us convert channel touchpoints into long-term loyalty.”

Missed Opportunities Around Learning and Recognition

The report reveals a significant missed opportunity in how brands approach training and channel partner recognition within loyalty programs. While partner education is widely acknowledged as a driver of long-term engagement, only 36% of organizations currently integrate training into their loyalty strategies. Even fewer provide consistent communication or field-level recognition, with most rewards still concentrated on top-performing sellers overlooking key influencers like support staff.

Highlighting a more inclusive approach, Shashank Shaikhar, Marketing Manager at Dr. Willmar Schwabe, quoted: “What stood out for us was Benepik’s ability to include pharmacy staff, not just field force. Recognition across the entire value chain helped drive brand recall and partner motivation.”

The Partner’s Voice: What They Really Want

Channel partners consistently seek simplicity, clarity, and timely gratification. They want loyalty programs that are easy to understand, transparent in progress tracking, and flexible in rewards.

“I can now track everything on one screen: targets, rewards, and how to earn more. That makes me want to sell better,” says Rajeev Gupta, a retailer based in Delhi.

Given the diversity of the channel partner ecosystem, dealers, contractors, retailers, influencers, a unified loyalty approach no longer works. Brands need to create experiences that reflect the unique motivations of each stakeholder.

Loyalty as a Strategic Lever

Across industries from cement and insurance to pharmaceutical, leaders agree that when executed well, loyalty programs do more than just reward performance; they strengthen relationships, drive consistent sales, and build long-term brand affinity.

“Our advisors and loan partners are the backbone of our business, especially in underserved markets, keeping them engaged goes beyond payouts. We’ve seen that loyalty programs offering transparency, timely recognition, and flexibility help build lasting trust,” quoted Rohit Gaur, Head of Product & Strategy at India Shelter Finance Corporation Ltd.

“Trade gratification is a game changer. It helped us build stronger retail relationships and drive consistent sales,” says Balakrishna Sahu, DGM-Marketing at Dharampal Premchand Ltd.

“For a B2B beauty brand like ours, loyalty helps us engage salon owners beyond transactions through upskilling, technology, and co-creation,” notes Supriya Agarwal, Head of Marketing at ESME Beauty.

“At Dhanuka, we see loyalty as a means to empower our channel by combining timely incentives with knowledge-sharing and grassroots recognition,” shares Subodh Kumar Gupta, DGM – Marketing at Dhanuka Agritech Ltd.

Each testimonial underscores a common truth: effective loyalty programs are not just incentives they’re enablers of business transformation.

What’s Next: Building Loyalty That’s Intelligent, Inclusive, and Impact-Driven

The report concludes with a forward-looking roadmap that encourages brands to future-proof their channel loyalty programs by:

• Adopting AI-driven personalization
• Enabling real-time engagement through mobile dashboards
• Integrating training, communication, and recognition
• Building emotional connect and community across the channel

As Saurabh Jain aptly puts it: “Loyalty isn’t won with rewards, it’s earned through recognition, relevance, and relationships. The brands that embrace this will lead not only in market share, but in mindshare.”

About Benepik

Benepik is a leading Loyalty, Rewards & Engagement platform, empowering over 700+ brands to engage meaningfully with their employees, channel partners, and consumers. With real-time analytics, gamified programs, and mobile-first tech, Benepik helps businesses turn loyalty into a long-term growth engine.

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