What Makes A Successful Channel Sales Incentive Program?
In a business where incentive programs are necessary to motivate channel partners, many vendors want to guarantee they are spending their money wisely. Many companies tend to be skeptical when investing in their company incentive programs because of so many that charge too much for the wrong rewards. Vendors are currently spending approximately $55 billion USD on their incentive programs in an effort to gain their partners’ loyalty. When investing this heavily, channel marketers want to ensure that their money is being spent correctly, while also encouraging and motivating in the most effective way.
So how can vendors make sure their company incentive plans and programs are a beneficial investment to make? Listed below are explanations of what partners desire to receive from these reward programs, as well as unique ways for vendors to motivate their partners.
Don’t make it complicated:
It should not take a rocket scientist to figure out your business incentive program. Even if the reward is great, the majority of channel partners will find it difficult to work for it if it’s too difficult to achieve. A top-performing incentives program should be easy to access for partners, and offer a satisfactory reward. By making rules straightforward, greater performance incentives will be guaranteed to follow.
Knowledge can be a good incentive:
By providing incentives to their partners, vendors expect them to specifically promote their product to customers. In our business world today, many of these partners look to their vendors to gain new marketing and promotion techniques. In addition, some also seek assistance from their vendors in developing new business plans. This can include, but is not limited to managing cash flow, re-designing sales compensation structures, and managing revenue. Although they may not be viewed as typical rewards, their high demand has turned them into beneficial performance incentives.
Offer a wide range of incentives:
Not all performance incentives have to be achieved by winning them or reaching a revenue goal. Company incentive programs should offer a large range of marketing activities that are pre-planned in your incentives plan. Instead of only depending on rewards to motivate partners, these types of incentives will ensure that your partners succeed while staying loyal to your brand.
Find ways to be economically efficient:
As we still face economic challenges ahead, it is always in a company’s best interest to find ways to maximize efficiency. As mentioned earlier, a simple business incentive program is favorable for partners because rewards are easier to access. This type of program is a good way for companies to be economically efficient. By offering only a few platforms in your incentive program, it creates more room to be flexible in other areas.
What is the point of carefully creating a business incentive plan if you do not plan to keep track of your partners’ performance? By tracking performance statistics, you can gain a better understanding of how effective your incentives plan is. So how can this benefit your partners’ motivation? If the tools are provided for them to track their own performance, they are typically inclined to work harder and achieve greater.