Things to Know About Incentive Programs
An incentive program is made up of recognition and rewards to encourage the necessary or desired behavior from a particular group of people. Incentives represent a behavioural modification tool which you can use for various reasons. Your behaviours get repeated often when you assign rewards for certain behaviours. This is psychological called Operant Conditioning Incentive programs, which does not use cash compensation rather they use non-cash rewards. The reason for this is that non-cash rewards motivate long-term behaviours.
What are the examples of incentive programs?
Companies apply incentive programs for promoting their products and services. Below are the examples of incentive programs.
- VAR Incentives: You can use incentives to create loyalty, brand preferences and familiarity with resellers. It can also increase product margin and market share.
- Sales Incentives: promoting the sales performance by encouraging sales reps to cross performance metrics.
- Contractor Loyalty Incentives: Use Incentives for a more profitable, long lasting relationships that has an indirect sales force.
- Dealer Incentives: You can use rewards to encourage dealers to market more products, distributors can use this to promote their market penetration.
- Referral Incentives: Incentive partners can offer qualified referrals to more partnerships or opportunities.
- Employee Incentives: promotes employee retention or workplace performance by recognising and rewarding employees to meet company values and reach goals.
- Channel Incentives: You can reward channel partners for being loyal, sharing marketing and more sales data, or for moving a product to promote how profitable a sales funnel is.
- Rebates and SPIFF: SPIFF can be included in a short term sale to promote a particular product, while rebate incentives can encourage the generation of the demand from buyers.
- Customer incentives: Promotes how profitable a customer is by rewarding brand advocacy, order frequency or size and rewarding loyalty, which B2C and B2B organisations. Incentive programs refer to a planned activity for motivating people to achieve organisational aims. These are predetermined aims. It aims at getting people to do a particular thing. That’s to say that the goal is primarily motivation.
How to manage an incentive program
Modern incentive programs depend on digital and online interfaces to communicate with those who take part, give out rewards and assign points. This promotes the accessibility and scalability of the programs and enable businesses manage redemptions and track data. You can manage incentive programs with small organisations. 70% of the firms spend less time in managing an incentive program, by managing a program and operating outside an incentive program. Effective communication is relevant for managing an incentive program, both the time of a program and its enrollment are relevant.
