Why a Discount Ladder Will Never Win You Partner Loyalty

The other day, I had a meeting with the Head of Sales at a large manufacturing company. They sell exclusively through a network of distributors and local installers—companies that deliver crucial services to end customers. When I asked him what their loyalty program for partners looks like, he just stared at me. Turned out, all they had was a discount ladder. They’d simply never thought beyond it. Just like most B2B companies in our region.

In 2025, far too many B2B companies still believe that a discount equals loyalty. It doesn’t.

A discount isn’t a strategy. It’s a void. It doesn’t build relationships. It doesn’t create preference. It gives you no data. 
A discount is just… a discount. And all it really gets you is this: your competitor undercuts you by 2% next week—and you’re back at square one.

But if your business depends on others to sell your products—retailers, installers, service techs, agents—you’ve got to ask yourself: What else could these people be doing for you if you gave them a real reason? Not a bigger discount after the sale. A reason. 

What your partner could do for you (if you know how to reward it) 

Your sales partners handle distribution. That’s the baseline—it’s what they’re supposed to do. But they’re also the only ones in direct contact with your market: the people who buy, use, and compare your product. If you know how to engage them, they can become your single most valuable source of market insight. They’ll help you understand customer needs, shifts in behavior, brand perception, and competitor moves.And most importantly—you’ll stop guessing based on research reports and start knowing things first-hand.

That’s also your moment to reward them—not just with commissions. Maybe even with what you save on market research, because frankly, you won’t need as much of it anymore. And long-term? You’ll see better sales—driven by a deeper market understanding and stronger relationships with your partners. 

Here are a few partner behaviors that smart B2B loyalty programs actively reward: 

• They register every sales opportunity they spot in the field. You get real-time visibility into demand—and competitor activity. 
• They prepare quotes and share measurement data (if you’re in windows, HVAC, heating…). Your CRM fills up with data you never had before. 
• They share purchase orders or delivery slips, letting you discover which products are most often bought together—and revealing bundling patterns. 
• They support new product launches. Host demo days. Get their top customer involved. Recommend beta testers. 
• They collect customer feedback: recurring questions, competitor talking points, and early signs of shifting sentiment. 
• They attend your training sessions—and every certificate they earn grows your sales capabilities, not just theirs. 

Now be honest—how often do you actually reward any of that?

If your answer is “never” or “we’ve got some spreadsheet somewhere, but nothing structured,” then you're missing out on value others are already capturing. 

 VELUX Club – a loyalty program done right 

VELUX is a Danish multinational and the global leader in roof windows, daylighting, and ventilation. Their business model revolves around a network of certified installers—professionals who interact directly with end customers. These installers are the key to understanding how VELUX products are used in the real world—and the value they create.

For years, we at FrodX have helped VELUX turn this channel into a strategic advantage through a loyalty program that works. Want to see how that looks in practice? Here’s one story we helped shape—a program that transformed the relationship between a manufacturer and its frontline implementers.

Installers in the program used an app to register every installed window—along with details about the building, the customer, the configuration, and the installation method. They earned points—redeemable for rewards, training, and marketing support. 

VELUX, in return, gained something even more valuable: 

• visibility into where and for whom their windows were being installed, 
• insights into the most popular product lines, 
• data on their most active installers, 
• and a clear view of which products are frequently purchased together. 

Within two years, they saw a 40% increase in product registrations, significantly stronger installer engagement, and a firmer grip on the market. Their market share among certified partners jumped by 18%. 

If you have a channel, you have an opportunity. If you don’t have a program, you might have a problem.  

A B2B loyalty program isn’t a punch card.It’s a system. A relationship framework. A tool that turns “just another brand in the portfolio” into “a brand I believe in.” For end customers—and for the partners helping you reach them.

It’s not about giving more to everyone. It’s about giving more to those who do more—even if they’re not your biggest sellers.

If you feel your distributors, retailers, installers, or agents aren’t doing all they could, maybe it’s time to build a relationship that goes beyond discount ladders. If you're curious what that could look like in your industry—and how fast you could start getting real insight from the front line—let’s talk.

We know how to build it—and make it work. In any industry. 

 igor.pauletic@frodx.com