8 emerging trends for channel incentive programs

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Mike May

@SpearOne

8 Emerging Trends for Channel Incentive Programs

Channel Challenge

“Channel incentive programs have become ridiculously hard

to understand and comply with.”

- Channel Executive

“Reps get a check and don’t know what it’s for.”

- Channel Executive

Channel Challenge

Environmental Challenges

• 200 emails / day

• Doing job of 2-3 people

• Changes in job, direction, territories, products

1. Attribution2. Targeted & Recurring3. ‘Thud’ Factor4. Gamification5. Behavioral6. Award Pyramid7. SoMoGlo8. Enablement

Breathe Life into Your Channels

TREND 1

ATTRIBUTION

Attribution

A B C D E

1 2 3 4 5 6 7 8

MANUFACTURER

RESELLER

REP

Attribution

General IT VAR Dell 20%HP 12%

Cisco 10%Avaya 8%

Polycom 6%Microsoft 12%McAfee 8%

VAR service 10%All others 14%

100%

DellHP

CiscoAvaya

PolycomMicrosoftMcAfee

VAR serviceAll others

Attribution

Security Specialist

DellHP

CiscoAvaya

PolycomMicrosoftMcAfee 60%

VAR service 10%Symantec 10%

Trend Micro 10%Websense 7%

ESET 3%100%

AttributionDellHP

CiscoAvaya

PolycomMicrosoftMcAfee 60%

VAR service 10%Symantec 10%

Trend Micro 10%Websense 7%

ESET 3%100%

Dell 20%HP 12%

Cisco 10%Avaya 8%

Polycom 6%Microsoft 12%McAfee 8%

VAR service 10%All others 14%

100%

Insights

Awards

• Bigger behavior shift requires bigger award

Communication

• Segment audience by attribution %

• Target different messages by segment

Design

• Remember others aren’t at 100% as we are

• Simplify!

TREND 2

TARGETED & RECURRING

Message to where they are!

Targeted Communications

Partner Sales Reps

Audience Non- participants

Member with No Points

Silver with Points

Silver with Points, but No Redemptions

Gold Platinum

Objective Increase registration

Build mindshare

Initiate participation

Increase mindshare

Move to Gold level

Increase redemptions

Share unique rewards

Keep 'Top of Mind‘

Move to Platinum

Provide extra

recognition

”…with any considerable number of repetitions a suitable

distribution of them over a space of time is decidedly

more advantageous than the massing of them at a single

time”

- Ebbinghaus, H.

Spaced Repetition

Throughout the year

• Definitive start and end

dates

• Set optimal duration

During the campaign

• Capture attention in

short intervals

• Example: Blitz weeks

Rythmic

Insights

Awards

• Match awards to audience interest

Communication

• Segment & target

• Personalize content

• Create rhythm

Design

• Personalize web experience (PUX)

TREND 3

THUD FACTOR

200 emails / day10% read rates2% click thru .4% connection

Challenge

Campaign in a Box

Campaign in a Box

• Custom kit boxes• Collateral• Branded giveaways• Job training aides• Banners and posters• Catering• Motivational awards

Campaign in a Box

Job Training Aids

Job Training Aids

Insights

Awards

• Not all cash and cards

• Ship some stuff

Communication

• Change it up!

• Add print or promo item

• Job aids

• Vary email formats

Design

TREND 4

GAMIFICATION

Gamer Types

Achiever Explorer

Socializer Killer

Game Mechanics

Performance

• Real-time Feedback• Progress Tracking• Goal-Setting

Status• Badges• Leveling Up• Mastery

Social

• Teams• Competition

• Creating a virtual identity

• Earning badges, trophies, achievements

• Tracking activity

• Competing for a leading position

Game InterfaceGame Interface

Leaderboard

Participants will receive virtual rewards such as badges and ‘leveling up’

Badges

• Team badge notification

• Digital activity stream

• Message board• Peer-to-peer

recognition• Group-specific

leaderboards

Socialize Success

Web Training GamesGamification

Web Training GamesGamification

Insights

Awards

• Add social recognition

• Add prize drawings

Communication

• Promote the game

Design

• Try a game!• Determine

the goal of your game

TREND 5

BEHAVIORAL INCENTIVE

Sales Incentive

SALE

Learning ProposalDemoCertificationQuiz

Benefit: Behavioral incentive breaks down & rewards successful steps.

Behavioral Incentive

Challenge: Reps often struggle with mapping steps to a complex sale.

SALE

Learning

ProposalDemoCertificationQuiz

Behavioral Incentive

Learning

SALELearning ProposalDemo

Certification

Quiz

Behavioral Incentive

Certification

SALELearning

Proposal

DemoCertificationQuiz

Behavioral Incentive

Proposal

Insights

Awards

• Reinforce key steps with rewards

Communication

• Educate channel on important behaviors

• Narrow focus

Design• Roadmap

your steps to success

• Evaluate key drivers

• Determine where focus needed

TREND 6

AWARD PYRAMID

$$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ $$

Where?

Why?

How?

PRO CON

Easy Monotony

Disconnected

Stale

Compensation

Distinct Promotability

Grand Prize

2n

d

Prize

3r

d

Prize

create excitementattract interest

WOW factor

lots of winnerstouch more participants

reminds that people do win promotes contest

fun awardsmore winners

promote contest

Award Pyramid

Mexico

ChinaChile

Paris

Awards that Motivate

Awards that Get Noticed

Awards that Motivate

InsightsAwards

• Cash & cards are hard to promote

• Avoid award monotony

• Add overlay contests

Communication

• Align message with channel strategy

Design

• Simplify offers

• Increase awards to match strategy

TREND 7

SOMOGLO

So - Social

Mo – Mobile

Glo - Global

Insights

Awards• Social

recognition: what are you doing?

• Badges, virtual recogntion

Communication

• Check your web stats for location and browser type

Design

• Prioritize theatres

TREND 8

ENABLEMENT

Channel Challenge

“Enablement is everything.”

- Channel Executive

The Kirkpatrick Model

Donald Kirkpatrick, PhD, The Kirkpatrick Model

The Kirkpatrick Model

Engagement - - - - - - - - - - - - - - - - Enablement

Insights

Awards

• Reward enablement behaviors

Communication

• Stop sending same emails

Design

• Ask “how are we doing?”

• Evaluate rep turnover & competency

1. Attribution2. Targeted & Recurring3. ‘Thud’ Factor4. Gamification5. Behavioral6. Award Pyramid7. SoMoGlo8. Enablement

OR …

SUMMARY

rapid channel enablement

Mike May | Spear One | President | mmay@spearone.com | 972.661.6010

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