Dealers, distributors, and resellers are no stranger to channel incentives programs. Many companies use this type of scheme to drive the behavior of their channel partners –behavior that will eventually lead to increase in revenue, of course. However, this does not necessarily mean that having a sales channel rewards program will automatically translate to an increase of your channel partners’ performance or a boost in your sales revenue. You have to ensure that your program is well-thought and well-structured. Otherwise, you will only spend your budget without any certain return.
So to help you with your next channel incentives program, or if you have an ongoing one that needed to be modified, here are some tips that can help your program become more effective:
1. Define specific objectives of your program
Objective setting is the most crucial part in developing an incentive scheme, because it will serve as the foundation of your program. Everything about your program will revolve around it so you have to make sure that your objectives are clear and most importantly it follows the K-I-S-S and S-M-A-R-T principles.
2. Identify who your participants are
In this case, your target participants are the sales personnel of your distributor or reseller. But of course you have to go deeper than that. You have to personally understand the profiles of your participants. Meaning, you have to know what they prefer and need or in some cases, what they want and what they ought to have.
3. Ensure that all your target participants are aware of your program
It is important that you also have a communication plan for your sales incentives program, to ensure that 100% of your participants will join your program. This is actually beneficial on your end, because the more participants who join, the higher revenue you could generate out of that program (you know what I’m saying, do the math).
4. Give them rewards or incentives they would find relevant to their needs
Every individual has different motivations, and it also applies to your sales channels. If you have undergone the process of identifying your participants and understanding their needs, it will be much easier for you to pinpoint incentives or rewards that are relevant, and will have effect to the performance and morale your participants or recipients.
5. Add some creativity and gimmick from time to time
If you are the type that often implements sales channels rewards program, it would not hurt to try new gimmicks to put more life to your program. This will definitely spark newness among your target participants, and will make your incentives scheme sustainable.
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