How do Points-based Channel Rewards Work?

December 4, 2017 Claudio Ayub

Points-based channel rewards incentive programs have been employed for ages to increase partner sales and engagement. But what are points-based rewards and how do they help your organization stand out from the competition for partner loyalty?

What is a points-based channel rewards program?

In the most basic sense, a points-based rewards program awards points for participating in activities that drive your business goals. For instance, if you want partner reps to learn the new digital buyer’s journey, you can offer points for completing training materials. Or maybe you want partner reps to focus attention on bottom of the funnel achievements? Consider awarding points for activities such as upgrades or cross-selling. The participant can redeem the points for merchandise, travel, experiences, gift cards, etc.    

Points-based channel rewards are easy to work with.

When it comes to individual incentives, you can’t get more flexible than points-based channel rewards programs. You can customize these programs to any goals you want to achieve, and you can incentivize all level of sales reps, not just the top performers. Points-based channel rewards programs allow you to take a more strategic approach by rewarding desired actions that are taken at different sales cycle stages, rather than just finish-line results.

Why do points-based channel rewards work better than cash?

An Aberdeen research study shows that 63% of best-in-class companies use non-cash awards in their B2B programs. Why? Because choice is a great motivator. When you offer a mix of cash and non-cash incentives that are tailored to your partner audience and give participants the freedom to make a choice, you create an emotional attachment that monetary rewards can’t replicate.

10 Points-based Rewards Program Key Considerations

  1. Start by defining the strategy, goals, and objectives of your program
  2. Align individual rewards with your partner’s company-level incentive program and business models
  3. Reward partners for skills and activity improvement
  4. Assess and survey target participants and choose the type of reward that will motivate them
  5. Set points to accrue at rates that are fast enough to keep program participants enthusiastic
  6. For global incentives, address regional and cultural factors
  7. Automate the claiming process, leverage available data and integrate workflows
  8. Use gamification elements to promote participation and awareness
  9. Combine rewards with recognition elements
  10. Consider the legal, tax and regulatory impacts for rewarding both companies and individuals

Ready to learn more? Read our Incentives Insights about channel rewards programs best practices:

Get insights on channel rewards programs.

About the Author

Claudio Ayub

Chief Strategy Officer Claudio Ayub brings over 20 years of global channel marketing experience to Perks.He has executed major go-to-market programs for a variety of vendors, including Bing, Cisco, Dell, EMC, IBM, Kaspersky, Lenovo, Microsoft, Motorola, Seagate, Symantec, and VMware among others.

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