What types of specific incentives and rewards programs are the most effective?
Let’s start by setting a baseline of understanding. There are incentive types such as MDF, Co-Op, Rebates, Rewards, and Spiffs and there are incentive programs or promotions: such as onboarding velocity, certification/accreditation, lead reporting, deal registration, revenue achievement, managed business objectives, and customer success.
The big picture answer to your question about what types of specific incentives and rewards programs are the most effective is behavior-based incentive programs are the most effective. Think about it, the new digitally-connected buyer is driving a whole range of behavior changes between vendors, partners, and end-customers; especially when dealing with how end-customers obtain information and purchase products.
It is therefore critical for vendors to educate partners on how to use all of the tools they make available to partners, to connect with each buyer at each phase of their journey. This is where behavioral incentives make a big difference in helping partners modify their sales and marketing behaviors, towards proven methodologies designed around the buyer’s journey. More specifically, behavior-based incentives motivate partners to serve up the content the buyer is looking for and deliver value throughout the buying process.
By introducing or moving to a behavior-based rewards program for channel partners, suppliers extend beyond incentivizing closed/won sales revenue to recognize and reward pre-sales behaviors that contribute to pipeline (e.g., demand creation participation, capability improvements, certification completion, portal engagement, channel program engagement, opportunity registration, social amplification).
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About the Author
Chief Strategy Officer Claudio brings over 20 years of global channel marketing experience to Perks. He is a loyalty marketing expert with broad knowledge in strategy development, market management and channel sales planning, who has developed and executed major go-to-market programs for a variety of vendors, including AMD, Bing, Cisco, Dell, EMC, IBM, Kaspersky, Lenovo, Microsoft, Motorola, Seagate, Symantec, and VMware among others.Claudio is a management strategist with cross-functional expertise in business, finance, sales and marketing, strategic planning, and customer relationship management; an area he has excelled at by executing complex CRM implementations, customizations, and business process re-engineering for CRM applications. He keeps current with changes in technology and is passionate about the business implications of new technology. Claudio is an avid social media user and early adopter of social CRM.More Content by Claudio Ayub