Most parents are similar in that they offer their children incentives for behavior, hard work, good grades or cooperation. The incentives might come in the form of a cash allowance or going to get ice cream or out for dinner. Whichever form it takes, parents enjoy offering incentives to their children because they know it is a reward system that will make them both happy.
The same is true for companies that offer dealer incentive programs. If implementation of an incentive program is done incorrectly though, the effectiveness can become complicated.
In order to be sure that your incentive program is meeting all of the critical standards, these basic requirements should be addressed:
Dealer Incentive Program Objectives
It is important to be fully aware of the purpose it intends to serve when creating an incentives program. Specific objectives should be in mind to help form the basic structure of the program. Usually, if one primary objective is named along with one or two smaller objectives, then this will help to achieve the goal more efficiently. Typically having a beneficial primary objective will determine what overall goal you will want to achieve, and sometimes numeric terms will make it more specific. For example, you might propose increasing company sales by 15 percent in the second quarter this year compared to the same quarter last year. Writing down your company’s goals and objectives could possibly be the key to successfully achieving them.
Grabbing Dealers’ Attention
Unfortunately, dealer salespeople typically do not go out of their ways to sell your product. The large retailers have a very wide range of products to sell; so many times they do not have the time to pay special attention to yours. Your company will always be competing with other companies for the attention of your middleman.
But there are ways to stand out among the competition. If you have a strong, well-developed dealer incentive program, your channel partners’ sales teams will likely remain loyal to you and your product.
Inviting your top dealers, distributors and agents to an all-expense-paid meeting and allow them to express concerns, special needs, you will show them consideration for their needs and it will also help identify what other incentives would be beneficial to offer.
Keep It Simple
The simplest way to improve your rewards program and increase motivation is to keep the structure simple. Significant performance increases will be the result from top dealers of your company.