Loyalty glossary · 12b. B2B, channel and trade incentives (26)
Stacking Rules
Stacking rules specify whether a channel partner may combine multiple incentives on the same transaction, and if so, how the combined accrual is capped or recalculated.
A channel programme faces this choice early. If two incentives apply to one partner transaction, the accrual engine will either add them or replace one with the other. Stacking rules are the explicit answer to that choice. Vague language leaves the engine to guess.
The silent default is the most expensive option. When no cap is set, a large volume distributor can combine a base rebate, a product launch bonus, and a training completion award on a single order. Finance sees the final number after the invoice prints, not before.
A worked example separates the positions. A partner with a 20 percent base rebate and a 10 percent launch bonus faces a 30 percent sum. If the published cap is 25 percent, the partner receives 5 points less than the naive addition. On a 50,000 dollar order, that is 2,500 dollars of margin retained.
Qualification is separate from stacking. A partner can meet an activity based threshold, such as 12 months of continuous ordering, and earn a 2 percent loyalty tier. Stacking rules then decide whether that 2 percent adds to a 3 percent volume rebate or replaces part of it. Active member rate tracks participation; it does not cap the payout.
The remedy is a published stacking matrix. Each incentive row states add or replace, and a cap column sets the maximum combined accrual for any transaction. This turns an internal engine setting into a commercial term a partner can accept or contest before the sale closes.