360insights, a leader in channel incentive management solutions, has officially published results from a comprehensive study, which exposed a critical disconnect between automotive manufacturers’ channel programs and their dealer networks.

According to certain reports, the stated findings were reached upon despite dealers overwhelmingly believing in these programs’ potential for business success.

More on the same would reveal how the survey in question entertained responses from more than 200 leaders across the auto and auto aftermarket, including dealers, owners, and technicians throughout US. Going by the available details, this whole exercise claimed that, while 82% of dealers say loyalty programs are effective for achieving business goals, nearly half report limited impact on their business performance. This was primarily due to program complexity and lack of awareness.

“This research uncovers a fundamental misalignment between program design and real-world implementation,” said Jason Atkins, founder & CEO at 360insights. “The data shows that dealers believe in these programs’ potential, but complexity and poor communication are creating unnecessary barriers to participation.”

Talk about 360insights’ study on a slightly deeper level, we from the fact that, even with their 66% hold on the consumer tire retail market and leading consumer preference, independent shops remain largely disengaged from manufacturer support programs.

The reason behind this can be understood once you consider how program ease of use (50%) and understanding (57%) were found to be the two most influential factors in program participation, and yet 42% of dealers went on cite lack of awareness as a top challenge at present.

Next up, there would be the challenge of talent retention and training gap. You see, a whopping 75% of dealers identified retaining top talent as a major challenge. Having said so, only 31% of participants are currently enrolled in a training program. Such disconnect proposes significant need, as well as an opportunity for manufacturers to support their dealer networks through enhanced training initiatives.

Moving on, a shift in customer expectations has also presented a marked need for evolution. In essence, shifting consumer expectations are reshaping dealer operations through three key trends i.e. better customer experience requirements, accelerating online sales, and retail consolidation. These changes, on their part, are forcing dealers to adapt, highlighting the need for stronger manufacturer support.

“The automotive aftermarket is at a critical inflection point,” said Adam Zickert, Automotive Channel Consultant. “Manufacturers who can simplify their programs while addressing dealers’ core needs around talent development and digital transformation will gain significant competitive advantage.”

Among other things, it must be mentioned how 360insights’ uncovered a rising intensity in profit pressure. Contextualizing its importance would be a piece of data, which reveals that shop owners report their top challenges as profit growth (53%), customer satisfaction (47%), and customer retention (35%). However, current manufacturer programs retain a focus primarily on volume metrics rather than profitability support.

Now, we referred to the problem of training gaps, but what we haven’t mentioned yet is that nearly 60% of shops cite “finding and retaining skilled labor” as their primary organizational challenge, but at the same time, only 24% of manufacturer programs offer comprehensive technical training support.

“Manufacturers who move quickly to modernize their channel programs will capture disproportionate market share,” said Atkins. “The winners in this market will be those who help independent shops bridge the digital divide while simplifying program engagement through mobile-first training, streamlined 30-day promotions, and aspirational rewards that drive long-term loyalty.”