How brands are reinventing loyalty programmes: Benepik’s 2025 Report maps the future of channel partner loyalty

In India’s fast-evolving channel loyalty ecosystem, where distribution networks are central to business growth and market reach, a new report by Benepik, a loyalty, rewards, and engagement solution, uncovers how brands rethink loyalty to meet rising expectations and operational complexity.

Titled ‘Channel Partner Loyalty: Trends & Challenges Report 2025’, the report’s findings highlight that while 46% of companies continue to struggle with low channel partner engagement, largely due to complex redemptions, poor communication, and manual processes, a shift is underway. Loyalty, today, is no longer limited to just rewards and incentives; it is evolving into a holistic channel partner engagement. A growing number of brands are embracing technology-driven, personalised, and role-specific loyalty programmes that deliver a stronger and more sustainable impact. Organisations that have adopted partner segmentation and mobile-first dashboards have seen up to 60% improvement in ROI, with one auto ancillary brand reporting a 3.5x increase in participation within just 90 days of revamping its program.

Published as part of Benepik’s Channel Partner Loyalty: Trends & Challenges Report 2025, these insights reflect perspectives from organisations across sectors such as fast-moving consumer goods (FMCG), auto ancillary, agri-inputs, pharma, construction material, and banking, financial services, and insurance (BFSI). The report uncovers how traditional loyalty programmes, often transactional and narrow in scope, are no longer delivering the desired impact. Many of these programmes fail to engage partners meaningfully or adapt to their evolving needs. In contrast, leading brands are now shifting towards tech-enabled, segmented, and partner-centric models that emphasise real-time engagement, personalisation, and long-term value creation.


“This study highlights a clear misalignment between loyalty programme 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 organisations and their channel partners, offering a 360-degree view of the loyalty ecosystem.”

Brands struggling to engage channel partners
Despite recognising the importance of loyalty in driving channel performance, 46% of companies report low engagement from their partners, driven by heightened competition, limited personalisation, ineffective programme execution, and weak communication. Key challenges include complicated reward redemption (42%), poor programme communication (38%), manual processing of incentives (33%), and lack of CRM/ERP integration (31%). These friction points have caused many programmes to underperform. 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.”

Personalisation and segmentation show measurable uplift
The study highlights that brands embracing channel partner segmentation and real-time engagement are seeing significantly improved outcomes. Programmes tailored to partner roles such as dealers, retailers, and influencers report up to 60% stronger ROI, while mobile-first platforms are driving higher adoption, particularly in rural and semi-urban markets. Echoing this shift toward inclusive loyalty, Ratnesh Mishra, GM-Spares & Allied Business at Atul Auto, emphasised 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 programmes. While partner education is widely acknowledged as a driver of long-term engagement, only 36% of organisations 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 (the) field force. Recognition across the entire value chain helped drive brand recall and partner motivation.”

The partner perspective: Loyalty that’s simple, visible, and meaningful
Channel partners interviewed in the report consistently voiced a need for simplicity, transparency, and timely recognition. Rather than complex structures or delayed incentives, they seek intuitive tools that help them track progress and feel genuinely valued.

“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.

With such diversity in channel partners from dealers and retailers to contractors, mechanics, and field staff, loyalty can no longer be one-size-fits-all. Their roles, motivations, and expectations vary widely, and so must the way brands engage with them. Loyalty today is about creating tailored experiences and offering relevant value.

Real-world impact: Loyalty as a strategic business lever
Across industries from cement and insurance to pharmaceuticals, leaders agree that when executed well, loyalty programmes 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 programmes 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 programmes 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 strategic roadmap for brands aiming to elevate their channel loyalty programmes from tactical initiatives to long-term growth enablers. Future-ready programmes, it suggests, will need to:

• Leverage AI for hyper-personalised partner journeys
• Enable real-time engagement through intuitive dashboards
• Integrate training, recognition, and role-specific rewards
• Foster a sense of community and emotional connection across the partner ecosystem

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.”
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