How can distributors and manufacturers develop more cost-effective channel marketing? By using incentive programs strategically. Incentive Solutions’ Chief Marketing Officer, Nichole Gunn, contributed an article to Modern Distribution Management magazine on this topic. As Gunn says, these four tactics can help business-to-business (B2B) brands increase incremental and bottom-line sales:
- Start with specific goals. An incentive program with specific goals aligned with your organization’s overarching goals, will be easier to track and measure. Key performance indicators (KPIs) will be easier to select and it will be easier to efficient and successful initiatives, contributing to bottom-line sales growth.
- Use effective rewards. Non-cash rewards are more effective than cash because incentive programs tend to associate cash rewards with salaries. Non-cash rewards are also more visible and tangible, thus more conversation-worthy. Non-cash rewards also remove the guilt that tends to be associated with spending cash-rewards on non-essential items, making them more fun, emotionally resonant, and motivating for the recipient.
- Use incentive programs to collect sales data. Incentive programs help motivate channel partners to submit data by rewarding them for going the extra mile and providing online technology to help them submit sales claims.
- Incentivize training. Incentive rewards allow brands to train channel partners in more motivating, engaging contexts. Rewards also have a positive impact on the learner’s ability to retain information!
For more information and insights, check out Nichole’s article on Modern Distribution Management.