Incentive Program Study and Benchmarks

incentive-program-studyAt the end of 2006, Loyaltyworks surveyed 434 senior sales and marketing executives at Fortune 1,000 companies about their channel distribution incentive programs. Almost 70% of programs were aimed at channel partners (such as wholesale distributors and resellers) and in-house salespeople. Fifty-six percent had 100 or fewer participants and 44% had more than 100 participants - up to several thousand participants.

Most were directed or administered by C level or senior sales executives and 40 percent changed or adjusted the targets or program rules for participants to better align with business objectives annually. 42% of those beginning a new incentive program intended to use points to create a branded currency for maximum motivation.

8 out of 10 expect to see results after 12 months of operation. The biggest challenge was measuring the business impact and assessing the ROI of these incentive programs. 20% reported they have no formal way to measure the value of investments in incentive programs, which compares favorably with 37% who reported the same frustration to the Institute of Corporate Productivity.

Annual Spending Levels Per Participant

A majority of successful firms spend $500 or more per person annually on their channel incentive programs.

01. Understanding Channel management Managing a winning channel incentive program is challenging and requires patience. Find out what the building blocks of a successful program are.
02. Do Channel Incentive Programs Pay Off? Learn how channel programs can help you make the most out of your partnerships and yield lucrative ROIs
03. Channel Incentive Program Objectives and Applications Learn how your program goals and objectives will define your program design and guide you along the way.
04. Channel Incentive Program Application Examples These case studies showcase how companies are successfully using channel incentive programs.
05. The Psychology of Incentives and Motivation Get to know your audience and how do you go about designing a program that speaks to participants’ values?
06. Cash vs. Non-Cash Incentives Cash always seems like an attractive reward. But does it carry the same long-lasting trophy value?
07. Points-Based Incentive Programs Why choose a points-based program? It allows for a flexible structure, and, most importantly, it is measurable.
08. Point Program Participant Segments / Personas After enrolling in a program, participants assume different personas. Explore the various persona types.
09. Incentive Program Study and Benchmarks Compare your initiative program with industry benchmarks.
10. Incentive Program Performance Indicators A look at channel incentive program KPIs and redemption rates.
11. Channel Incentive Program Best Practices A list of best practices that will aid you in launching and maintaining a successful program.
12. Program Considerations and Conclusions Before embarking on a program take these final considerations into account.