A channel incentive program motivates and encourages specific actions like selling of certain products, bringing new customers, retaining the customers, meeting and exchanging targets, for gaining product knowledge and so on. Channel management is very critical for organizations since the partners act as agents of your brand. They can add or reduce your credibility as well as the success of your organization.
As per Incentive Research Foundation, channel sales incentives programs increase revenue by 32%. Channel incentives strengthen loyalty and increase your mindshare with business partners. According to Maritz Channel Market Study conducted on 1000 and more sales professionals, 77% of them believe that incentives programs have a high influence on their willingness, interest and energy to sell that manufacturer’s products and services. 81% of them say that the opportunity to earn rewards and incentives from manufacturers strengthens their ongoing relationship with them. 67% of representatives believe that it increases the job satisfaction and has a positive effect on results. According to analysis, 75% or more of annual sales are results of an effort to compete for rewards and incentives. This shows that incentive programs in the sales & distribution channel have a considerable impact on a business’ sales strategy and building brand loyalty.
A typical channel value chain is as below:
So, It is thus necessary to keep your distributors, wholesalers, retailers and sales employees motivated if you want good sales of your products or services. According to Gallup research, supplier relationships that create impact by giving valuable ideas, helping them to reach their goals, giving incentives to motivate them and so on develop powerful partnerships with brands that improve sales performance.
Your frontline retailers play a major role in converting a customer from an occasional shopper to a brand advocate. They are the only ones who know the actual real time reaction of the customer. Retailers have the power to engage your customers and take the true feedback from them.
Xoxoday brings effective solutions for channel incentives and rewards programs. Our solutions can cater to the complexity of a channel in terms of reach and ease of rewarding. Key issues in channel reward programs are data, analytics, tracking etc. Our technology based solutions help you with scalable rewards solution across various locations with strong data analytics and reports.