How the West Was Won: A Look at Improving Channel Performance from the Vendor's Perspective - Incentives to Keep Partners on Track
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Opportunity No. 4: Incentives to Keep Partners on
Track
To drive real behavioral changes with both best and emerging partners, you
need to offer incentives and recognition programs that are attainable and
meaningful to them. In our experience, a tiered rewards system is best because
one size does not fit all. Providing opportunities for partners at all levels
to earn rewards for performance drives alignment and engagement with you,
leading to increased sales and loyalty.
A points-based accumulation approach creates a virtual bank account for each
partner. It provides the motivation needed to bump channel partners up to the
next tier of performance by encouraging them to work a little harder. Of
course, growth expectations must be attainable.
Consider allowing points to be redeemable for MDFs to pay for
vendor-sponsored business-building activities. MDF options should align with
plans already co-created with your partners and also be meaningful to emerging
partners. Both best partners and emerging partners can benefit from the
flexibility surrounding the use of MDFs. These options could include local
incentive programs, business planning, tech “road shows” that promote vendor
products, sales skills training, vendor-sponsored conferences and more.
Remember the large office equipment manufacturer? As part of its solution to
drive sales in a stagnant market, the company offered an expansive training
curriculum—not just to enhance partners’ product knowledge, but to help them
target and acquire accounts, sell more strategically, and improve presentation
skills. As a result, the partners wanted to learn more, sell more and make
more. The inevitable result was a strengthened relationship with the vendor.
A Shared Destiny Realized
Vendors and channel partners know they can help each other succeed. When
vendors apply these channel strategies and remain committed, they can ride off
into the sunset, having won the West.
About the author: Michael T. Spellecy
is vice president and managing consultant, sales effectiveness practice, at Maritz.
He can be contacted at mike.spellecy@maritz.com, and more information about
channel alignment can be found at www.maritz.com.
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