6 Tips for Creating B2B Incentive Programs that Drive Growth

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Mar 7, 2022 • 5 min read

B2B Incentive Programs

Are you looking for a way to drive more revenue growth and strengthen company's relationships with your channel partners like distributor or retailers?

A B2B incentive program can be a smart solution to effectively increase your distributors' loyalty, retention and ultimately, your revenue.

What is B2B Incentive Program?

B2B incentive program is rewards meant to motivate your channel partners to achieve their goals which usually involve in hitting number of products sold and repeat purchase rate.

This incentive program is also known widely as B2B loyalty program. It is a way for companies to reward its customers, which in these cases are distributors, dealers, retailers, reseller and other types of channel sales partners.

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Compared to B2C loyalty, B2B company usually try to maintain a long-term relationships with their channel partners because based on Incentive Research Foundation, 81% of the top-performing companies had non-cash reward programs for their partners that contributed to a 32% increase in total revenue and a 30% increase in market share.

Tips for a Successful B2B Incentive Programs 

There are many possible incentive ideas that you can use for your own channel partners. For example rebates, special discounts, or even points that can be redeemed into various items.

No matter what type of B2B incentive program you plan to have, let's take a look at these tips for making a successful B2B incentive program.

1. "Reward" the Right Partner

Now, customers are no longer linear when making a purchase decision. They can quickly jump and switch from one brand to another to compare several products. They will interact with several parties, including channel partners, before deciding on a purchase.

It means that channel partners have a hand in helping customers make purchasing decisions. Arrange your rewards at every point of the sales process, from awareness to closed deals, and reward each partner in the process. That way, everyone realizes that the company appreciates every effort they make.

2. Go Digital

Slowly, all industry lines began to migrate digitally. The pandemic has accelerated even the process in the last two years. Indeed, many are still struggling to adapt, but more and more companies are already swapping their traditional strategies for digital business models, even leveraging artificial intelligence (AI). 

By implementing a digital-based incentive program, the reach of information and the program's benefits can be distributed to all channel partners without time limitations.

There are already many reward and incentive platforms that can facilitate the success of this program, so that your channel partners can easily access information and track their achievement from anywhere instantly.

3. Give Personal Target

Personalization is one of the keys to making someone feel recognized and valued. When channel partners realize that they accept personal goals that must be achieved while others do not, they will be more psychologically motivated. 

Set special target achievement at certain time intervals; monthly or quarterly, and make sure they can only go to the next target if they complete the previous one. These personalized activities will be easily executed with the help of a digital reward platform instead of having to do it traditionally.

4. Communicate Company Goals

Even the best B2B incentive program will fail if the program's purpose is not well understood by all personnel in the company, including your channel partners!

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For that, you need to do thorough and structured socialization. Create clear and targeted goals, convey the purposes of the rewards program through open discussion, casual chat, and email. The success of your rewards program is highly dependent on goals that are unambiguous and understood by all parties involved.

Also, make sure your distributor partners knows the following:

  • Their goals
  • What happens if they reach their goal?

5. Celebrate Every Achievement

Announce the achievements of channel partners who achieved this month's goal on your reward platform. Blast it on notification, slider banner or specialized post to congratulate distributors who have reached their targets plus the rewards they get. 

This kind of recognition will make the distributors feel valued and in same time motivate other distributors to do the same.

According to the Incentive Research Foundation, public recognition and giving gifts are the most effective in boosting one's work performance. Once your partners are aligned with the company's overall goals, you will have an unstoppable team fully engaged with moving your company forward.

6. Choose the Right Platform

Despite the many benefits of this incentive program, you need the right loyalty and rewards platform to facilitate program implementation, reward distribution, and personalization of activities.

Through the right platform like Tada, you will be ready to receive all the benefits of the B2B incentive program without adding any extra effort. Also, digital platforms can help you segment channel partners easily, streamline rigid administrative tasks, facilitate the acquisition of insightful data and take relationships with your channel partners to the next level.

Conclusion

B2B incentive programs can be the right tool to establish strong relationship with your channel partners. A successful B2B reward program can also promote loyalty and attract more channel partners to join in your supply chain.

Tada can be the right platform to help your company build your own and unique B2B incentive program that drives revenue and business sustainability. Request your free demo now and let us show you how we helped hundreds of brands with their loyalty and rewards program.

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Nuraini

Content marketing specialist

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