For any job, you need the right tools and approach if you’re going to be successful. A handheld screwdriver and an 8-amp power drill both attach screws, but you wouldn’t want to build an entire deck with just a screwdriver.
The traditional way of running channel sales incentives is much like relying on that screwdriver. It works, but it’s inefficient and limits your program’s impact. By embracing modern, data-powered strategies and gradual optimization, you can amplify your channel incentive program’s effectiveness and drive stronger, measurable growth.
Related: 5 examples of best-in-class channel incentive programs
How to boost sales incentive program results
You might be thinking, “Sounds great, but how do I implement these modern, data-driven strategies?” As ITA Group’s Channel Senior Manager, I’m frequently asked what elements are shared by the best channel incentive programs. Here are the top four things they all have in common.
1. Clearly defined objectives
Your channel sales incentive program needs a clear end goal to measure against. Otherwise, you’ll never know if it’s generating the results you need (or how to fix it if it isn’t). It’s not enough to say “sell more.” Ask yourself: “How much more?” and “Of what? To whom?”
Decide what success looks like for your organization’s leaders, program participants and other partners. Once you understand these different goals and how they intertwine, you can connect them to your program’s tactics.
Examples of long-term goals and corresponding program tactics
- Goal: Increase sales for specific underrepresented markets or product lines.
Tactic: Tailor your incentive program’s messaging and rewards to those markets or products. - Goal: Successfully launch a new training or certification initiative.
Tactic: Leverage the training as a qualifier for your traditional incentives or SPIFFs.
Aligning your program objectives with organizational goals enables you to create buy-in for your initiative through compelling rationale for the investment.
2. Timely, tailored communications
In my experience, the number one reason channel incentive programs fail to meet objectives is because of cuts in communication.
Program participation and engagement depend on participants knowing about the program, its benefits, how to earn rewards and the resources to help them achieve them. This is one area where you shouldn’t skimp!
For those who do participate, you need them to understand what behaviors are rewarded and why. If your program pays out and your participants aren’t quite sure why, it's a waste of money.
Communications should focus on the behaviors participants need to exhibit and the value they will get out of engaging. They should also generate energy and excitement worthy of participants’ effort.
Simply put, if you don’t articulate and promote your objectives in emotional, motivating communications that resonate with partners, you won’t meet your objectives.
Spreading the word about your incentive program
Once your objectives are clear, tell everyone in the appropriate audience about your incentive program. Think bigger than just immediate participants. Should partner leaders know? Which members of your internal team should know? Who do you know who will advocate for more partners to participate?
And I’ll add a plug for segmentation. Sending the right messages to the right people at the right touchpoints keeps up momentum. It’s not enough to send out a general announcement and call it good. Relevant messages at key moments are the key to sustained participation over the life of an incentive program.
We’ve also seen great things happen when you mix digital, print and even nontraditional forms of communication. Text messaging and push notifications can be especially helpful for in-field audiences. Desk drops can be an exciting surprise, as can direct mailers. Use all the communication tools available to you!
Related: Why the best channel incentive programs use engagement nudges
3. Expertly collected data
Like communications, data collection throughout your program is critical for its longevity. Because we all know that if you can’t prove your program’s worth, you won’t have that program’s budget for much longer. The data you collect has two primary functions: proving results and identifying areas for improvement.
But there are a lot of data points out there, and you need to make sure you’re prioritizing the data that’s most important for your goals.
Examples of important data points
- Sales by role
- Sales by region
- Sales by performance tier
- Sales by program tenure
- Completed trainings
- Number of program platform logins
- Percentage of participating partners by location
- Partner surveys and feedback
To create a thriving incentive channel program, make certain the quantifiable data you need to prove the program’s impact is collected, analyzed and easily accessible via your program platform.
Related: How data fuels a channel incentive program (and how to collect it)
4. Consistently optimized offerings
Getting a great program in place is always the goal, but don’t get complacent once you have it! Even the best programs have room to improve, and no program is perfect at launch. Testing and evolving your program based on participant feedback separates the good programs from the great.
Since you’re collecting the correct data for your objectives, you can use that data to identify any program gaps and adjust your program tactics.
Examples of program gaps and corresponding optimization ideas
- Gap: One audience segment is underperforming on its sales goals.
Tactic: Develop additional tailored communications for these segments to call attention to the program and address their needs. - Gap: There’s a seasonal slump in sales each year.
Tactic: Consider leaving a base, steady program throughout the year, but strategically add a short-term promotion during the slump.
Optimization pairs with the other best practices to create an exceptional program. It helps prove you’re meeting your objectives, as well as giving insight into whether those objectives need to be reevaluated for maximum impact. If you find objectives aren’t being met, the data will help identify areas where more communication is needed. And, as you analyze the data, you might find more data points that would be helpful to collect.
The best channel programs leverage data well
The growth impact of a well-communicated, data-focused channel sales incentive can have on a company’s profitability, year after year, is enormous. And with the data you’ve collected and the ongoing communications you put in place, the health of your incentive program will remain positive for the long term. Take these best practices into consideration to generate the powerful, results-driven output you need.