Channel Reward Programs – The Invisible Driver

For over 20 years I've put together channel reward programs.  From simple 3-month product-based incentive programs to annual recognition group travel programs.  In that 20 years I can probably count on one hand the programs that included the single most important success driver.  99% of the programs designed to target distribution channel performance miss out on the biggest opportunity to truly impact results.

Your Field Sales People

Most, if not every company that sells through an independent distribution network have "field sales people."  These are company employees who are tasked with calling on the distributor, dealer or jobber, and building relationships with, solving problems with and generally maintaining the ongoing business relationship with your customer.  These are your most important audience members when launching a distribution incentive and reward program.  But the goals for these folks should be different than the goals for the distribution channel.  Unfortunately, when they are included – the objectives they are assigned have very little to do with the real value they bring to the program.

If the field sales organization is included in a distribution program it is cursory at best.  They might be given some introductory materials on the rules and the phone numbers their customers should call if they have questions.  They might in some very rare instances be given a sales objective tied to the roll-up of their customers in the program.  However, their real value isn't in driving sales – it's about driving engagement.

Field Programs Should Focus on Connecting

To really drive distributor programs design a concurrent field program that rewards and recognizes the field for their efforts in generating buzz about the program.  Their job is a communication and administrative conduit – not another sales driver.  If the distribution program is designed correctly you don't need to layer a sales program on your field – you need to ensure the program is delivered, understood and managed correctly.

Your field program should have objectives that change over the course of the program – from launch to conclusion there are many activities that should be measured.  Some examples include:

Pre-Launch

• Has the field person reviewed the program rules and awards?
• Has the field person been "certified" to explain the program to their customers – do they know how it works and how it will affect their customers?"
• Does the field sales person understand how it affects them? 

Launch

• Has the field sales person called on their customers and asked them about the program?
• Has the field sales person presented the program to a customer and explained how they earn awards?
• Has the field sales person helped each of their customers define an award objective and put a plan in place to help them reach that goal?

Mid-Program

• Has the field sales person reviewed the program results to date?
• Has the field sales person called on accounts at the top to congratulate them – or the ones at the bottom to see what the issues are?

Program Close

• Has the field sales person put together a plan to recognize their customers personally if they are top performers nationally, regionally, etc.?
• Does the field person have tools available to provide communication to local business magazines and periodicals that can help reinforce their customers success?
• Does the field sales person meet with their non-earning customers to discuss what/why/how they fared in the program?

All of the objectives above will tremendously impact the success of your channel program – and most if not all of the objectives above are ignored by most companies.  Don't throw your money away on a program for your channel if you're not going to enlist your most important audience.

If your program fails – ask your field personnel why.  They will either say "what program" – and you have your answer – or they will have specific information from their customers on why.