Tech Shortfalls Limit Vendor Incentive Programs
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Performance Boosters
69% of vendors provide incentives to channel partners for meeting sales performance goals, including year-over-year and "reach" goals. -
Tunnel Vision
Less than 40% offer complex incentives such as those for lead generation, deal registration and training. -
Deal Breakers
Three out of four would like to run more complex incentive programs, but don't have the tech tools or staffing to handle the required data to execute them. -
Antiquated Approach
80% of channel incentive programs are still conducted manually, via spreadsheets, limited databases and other labor-intensive tools. -
Degrees of Separation
Just 48% directly provide incentives to partner sales reps and only 52% pay partner sales reps directly. -
Motivating Factors
45% provide "cash only" rewards to partner sales reps and 34% give points for merchandise or travel. -
Wide Appeal
Nearly nine of 10 give incentives to parties other than partner sales reps and 46% of those vendors reward partner sales engineers and 40% will reward the partnering marketing team. -
One-Off Mentality
Only 39% have shifted to recurring revenue models. -
Limited Perspective
Three of five that have launched recurring revenue models give incentives based on total contract value, but only one in 10 provide incentives for outcomes that aren't directly sales-related.
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Why Metrics Matter to the Channel Far too many vendors remain "stuck in time" when it comes to deploying tech tools to boost their channel incentive programs, according to a recent report from Parago, a channel-engagement company. The report, "Cut Through the Complexity: Smarter Incentives Drive Results," reveals that the vast majority of incentive programs are carried out via tedious, manual processes. While most vendors would like to increase the reach of these programs, they admit that they lack the solutions or staffing to manage the ensuing data demands. Such resources would enable vendors to reach beyond sales-performance goals and address accomplishments in lead generation, deal registration, training initiatives, business planning efforts and other factors. "If you believe (these activities generate) sales, you should incent it," said Dan Hawtof, vice president of global channel business solutions for Parago. "However, most vendors don't have an effective incentives program in place to do so." Here are highlights from the study.