Channel Incentive Programs: Best Practices to Learn From
Channel Incentive Programs Best Practices to Learn From
Incentivizing your channel partners can bring phenomenal results. It is time-tested. Rewarding your channel partners is as crucial as your internal sales team. However, there are chances that the program fails and backfires if it is not designed well or implemented correctly.
If you are intending to launch or revamp your channel partner incentive program, you are at the right place. This blog will cover some of the industry-grade best practices.
1. Goal Setting
Like any other program, it is crucial that the objectives and strategies are well-defined at the onset itself. This is a universally applicable best practice. Goals need to be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound.
Setting up SMART goals not just makes your task easier in measuring and tracking progress but also empowers the channel partner to work dedicatedly towards the set goals. There’s no place for ambiguity here. Refrain from assigning random goals – they should be well-researched and set as per the partner’s potential – in other words, the goals should be practical.
2. Keep All Stakeholders on the Same Platform
A major mistake that companies often commit is that they expect the incentive program to work in silos. Instead, you should keep all concerned stakeholders informed and on the same page.
For example, your senior management needs to have complete information about the program. That way, they will ensure that the top executives are aligned and there’s no issue with resources.
The internal sales team has to be involved in this from Day 1. These are the people who know the market in and out – hence, they can add value to your channel partner incentive program.
3. Use Technology for Best Results
One of the biggest areas of concern for channel partner incentive programs is the lack of an effective system to analyze real-time data. Channel partnerships generate valuable raw data. This, however, needs to be used effectively to understand the weak and strong points of the program and adjust accordingly in real time.
With the help of advanced platforms, you can choose effective data management for accurate budgeting and sales volume outcomes.
4. Provide Relevant Rewards
Rewards that will truly motivate your channel partners will give successful results. Just like customer loyalty programs are customized as per customer needs, channel partner incentives should be personalized as per the partner’s interests and preferences. Not all partners look at the same rewards. Some want freebies, others paid trips, while some others may want training and participate with you in trade fairs.
Hence, the best strategy for channel incentives is to understand what motivates the partners and design the program accordingly.
5. Supplemental Rewards for Those Who Surpass Their Budgets
If a partner is surpassing the budget and doing the extra bit to get you sales, you need to reward the partner a bit more than usual. This way, the motivational streak is given a boost. Not just for the partner who is doing extra good, it also encourages other partners to go beyond their budgets.
6. Communication
One of the best strategies for channel incentives is that you should communicate with your dealer network about the incentive program. Giving them all the information helps make your program stronger. If the communication channel is disrupted, your channel partners are in the dark which can propel them to sell your competitor’s products more.
Regular update to partners is the key to keeping the program at its best.
8. Monitor and Tweak
The entire crux of the incentive program is dependent on how well and regularly you monitor it. Doing so helps analyze the data and make changes wherever required. Expecting your program to work on auto mode is too risky.
The strategic analysis should be an ongoing process. This will, in turn, ensure that your program is always optimized for performance.
9. Training
Rewards are fine but ensuring that your channel partners are well-equipped to sell your products is your responsibility. They need to have full knowledge of the products. For this, you need to conduct training sessions and empower them. Also, it is a good idea to conduct workshops for your channel partners once in a while where they can improve their skills. It is going to do good and build loyalty amongst your partners.
10. Automate the Process
Thankfully, we live in a time when automation is not a dream but a reality. With the latest technology at our behest, your organization can gain plentifully from automation. It will certainly make it easier to track performance and reward the best performers. From generating customized reports to analyzing data, there are many pros of automated systems. Invest in automation to make the process seamless and cost-effective.
11. Use A Channel Incentive Platform to Make it Easy for Your Partners to Participate
Your objective should be to make things easier for your channel partners. Participating in the channel partner incentive program should not be time-consuming or a big deal. If it is, it can demotivate your partners.
From communicating clear steps and rules for registration to having a system that they can use easily, on the go, 24×7, and from any place, will make your program an instant hit. Use a system like My Incentives that make enrolment, incentivizing, and disbursements an easy affair. Such a system becomes the central hub that can be used for sending updates, communicating with individuals, making announcements, and more. If you have tiered incentive programs, the platform can help manage all of them from one central window. Additionally, if the incentives are customized and differ from partner to partner, the platform can make your processes faster, error-free, and more effective.
Conclusion
A channel partner incentive program is as good as you design it to be. With continuous communication and the use of a cloud-based channel incentive platform, you can make it the biggest winning factor for the organization.
Incentivizing your channel partners can bring phenomenal results. It is time-tested. Rewarding your channel partners is as crucial as your internal sales team. However, there are chances that the program fails and backfires if it is not designed well or implemented correctly.
If you are intending to launch or revamp your channel partner incentive program, you are at the right place. This blog will cover some of the industry-grade best practices.
1. Goal Setting
Like any other program, it is crucial that the objectives and strategies are well-defined at the onset itself. This is a universally applicable best practice. Goals need to be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound.
Setting up SMART goals not just makes your task easier in measuring and tracking progress but also empowers the channel partner to work dedicatedly towards the set goals. There’s no place for ambiguity here. Refrain from assigning random goals – they should be well-researched and set as per the partner’s potential – in other words, the goals should be practical.
2. Keep All Stakeholders on the Same Platform
A major mistake that companies often commit is that they expect the incentive program to work in silos. Instead, you should keep all concerned stakeholders informed and on the same page.
For example, your senior management needs to have complete information about the program. That way, they will ensure that the top executives are aligned and there’s no issue with resources.
The internal sales team has to be involved in this from Day 1. These are the people who know the market in and out – hence, they can add value to your channel partner incentive program.
3. Use Technology for Best Results
One of the biggest areas of concern for channel partner incentive programs is the lack of an effective system to analyze real-time data. Channel partnerships generate valuable raw data. This, however, needs to be used effectively to understand the weak and strong points of the program and adjust accordingly in real time.
With the help of advanced platforms, you can choose effective data management for accurate budgeting and sales volume outcomes.
4. Provide Relevant Rewards
Rewards that will truly motivate your channel partners will give successful results. Just like customer loyalty programs are customized as per customer needs, channel partner incentives should be personalized as per the partner’s interests and preferences. Not all partners look at the same rewards. Some want freebies, others paid trips, while some others may want training and participate with you in trade fairs.
Hence, the best strategy for channel incentives is to understand what motivates the partners and design the program accordingly.
5. Supplemental Rewards for Those Who Surpass Their Budgets
If a partner is surpassing the budget and doing the extra bit to get you sales, you need to reward the partner a bit more than usual. This way, the motivational streak is given a boost. Not just for the partner who is doing extra good, it also encourages other partners to go beyond their budgets.
6. Communication
One of the best strategies for channel incentives is that you should communicate with your dealer network about the incentive program. Giving them all the information helps make your program stronger. If the communication channel is disrupted, your channel partners are in the dark which can propel them to sell your competitor’s products more.
Regular update to partners is the key to keeping the program at its best.
8. Monitor and Tweak
The entire crux of the incentive program is dependent on how well and regularly you monitor it. Doing so helps analyze the data and make changes wherever required. Expecting your program to work on auto mode is too risky.
The strategic analysis should be an ongoing process. This will, in turn, ensure that your program is always optimized for performance.
9. Training
Rewards are fine but ensuring that your channel partners are well-equipped to sell your products is your responsibility. They need to have full knowledge of the products. For this, you need to conduct training sessions and empower them. Also, it is a good idea to conduct workshops for your channel partners once in a while where they can improve their skills. It is going to do good and build loyalty amongst your partners.
10. Automate the Process
Thankfully, we live in a time when automation is not a dream but a reality. With the latest technology at our behest, your organization can gain plentifully from automation. It will certainly make it easier to track performance and reward the best performers. From generating customized reports to analyzing data, there are many pros of automated systems. Invest in automation to make the process seamless and cost-effective.
11. Use A Channel Incentive Platform to Make it Easy for Your Partners to Participate
Your objective should be to make things easier for your channel partners. Participating in the channel partner incentive program should not be time-consuming or a big deal. If it is, it can demotivate your partners.
From communicating clear steps and rules for registration to having a system that they can use easily, on the go, 24×7, and from any place, will make your program an instant hit. Use a system like My Incentives that make enrolment, incentivizing, and disbursements an easy affair. Such a system becomes the central hub that can be used for sending updates, communicating with individuals, making announcements, and more. If you have tiered incentive programs, the platform can help manage all of them from one central window. Additionally, if the incentives are customized and differ from partner to partner, the platform can make your processes faster, error-free, and more effective.
Conclusion
A channel partner incentive program is as good as you design it to be. With continuous communication and the use of a cloud-based channel incentive platform, you can make it the biggest winning factor for the organization.