Build customer loyalty with channel programs
When first created, people marveled over a new technological invention called the Internet. It was an unbelievable innovation, and an example of what technology was capable of. At the time, nobody could have predicted that it would soon change almost everything about the world we live in today. In the business world alone, the Internet has even altered how basic forms of trade and distribution are performed.
Commerce executed through the use of the Internet, known as e-commerce, has been made much more widespread and extremely competitive. There are, however, several conventional stores that prefer to do business in person. These are typically those who act as sales channel partners that distribute goods for the manufacturer. Although it seems rather unconventional to choose not to follow the latest technological trend, these distribution channels have the advantage of face-to-face interaction. These distribution channels will only have a chance to survive the future if their members possess the correct knowledge and motivation to sell their products.
Keeping the goal of final sale is crucial in this business. Although it may seem like gaining the business of distributors is the objective, it is merely a small step in the overall process. There is an immense difference between stocking a product, and selling a product. In today’s market, it is hard for a product to possess enough unique qualities for it to stand out on its own to customers. This is a critical point for your channel partners to help your product jump out to buyers. In order to make this happen, the retailer should do everything in their power to promote your product both visibly and verbally to customers.
Achieving the task of keeping your channel partners eager and motivated is much easier said than done. Many of them will not be willing to jump at the opportunity to promote your product without knowing they will somehow benefit. This is why it is often a good idea to create an effective company incentive plan. By offering financial incentives, channel partners will typically find it more crucial to stock and advertise your products. Allowing a higher commission from the sales of these products often proves to be a beneficial motivation strategy.
Despite their endless benefits, good incentive plans can often be brushed under the rug because companies do not see a demand for one. Many of these companies fail to realize that those who help run them are human beings that generally need motivation. Apart from the rare “self-motivators,” almost all employees will require something to look forward to, and a reason to be enthused about selling your product. A uniquely designed incentive plan is the most obvious and cost-efficient solution to overcoming this obstacle.