Wholesale & Distribution International 2018 - Volume 5, Issue 1 - 5
leaderboard and post status. Use "pick
lists" and rules of validation to promote
timeliness and quality. The info is only as
good as the quality and timeliness. Penalize for poor performance.
Bind compensation with proper adoption. Compensation should have a direct
correlation with segmented KPIs. Pay
Integrate a mobile/online point program
that immediately rewards goal attainment. New non-cash point program reward platforms offer a user experience
that is similar to Amazon or Expedia
- a choice of hundreds of gift cards all
wrapped into a single dashboard. Determine what will motivate best above the
normal cash compensation and reward
often and openly.
Create competition and an upper echelon via leaderboards. Users maturity will
affect how best to motivate; i.e., new users will need immediate short-term spiffs
but experienced users will be more motivated by public competition and recognition of a leaderboard.
THE RULES OF CRM ADOPTION
According to Luke Kreitner, vice president of sales for incentive development
company Loyaltyworks, "The key is to
gain that dealer salesperson 'mindshare'
and promote best practices that translate
back to reaching predetermined KPIs for
Kreitner explains, "Obviously, it is
easier to insist a direct sales force adopt
a CRM platform, but 80 percent of the
American economy relies on channel
sales. In channel sales, the incentive reward platform actually functions as your
customer relationship tool. Your dealers
are adopting CRM through the sales incentive platforms and don't even know it
because it is rewarding and painless."
CRM adoption varies greatly by user,
and using immediate rewards promotes
both the proper usage and reiterates that
following the CRM procedure is beneficial to the user. It's similar to Pavlov's
dogs. The amount of reward and the time
and hassle it takes to receive it are related. If you reduce the time/hassle factor,
you can even reduce the reward but have
a greater consequence.
Kreitner concludes, "New CSS-based
platforms allow our clients to actively
change their promotions as needed so
they can be more responsive and garner
ROI all for less money than before."
To sum it up, combining CRM and
online reward incentive platforms will
achieve maximum ROI for your wholesale and/or distribution business if you
follow these two key guidelines:
1) Promote adoption and individually
focus not only in the stage of sale, but
also the maturity of the recipient.
2) Integrate the new mobile/online
engagement reward platform to incentivize the recipient and promote
"mindshare" engagement .q
STEP #2: REWARD THE PROPER
ROUTE TO SALES
Try using gamification to create a sense
of Vegas-type big winners. "Spin to win"
and other types of gamification allow you
to parlay small rewards that probably will
not move the needle into a sweepstakes
type, all or nothing gambling event; i.e.,
bet $30 with a 1:1,000 chance to win a
$30,000 bass boat.
The key is immediacy, flexibility and
transparency with your participants. The
beauty of online/mobile platform-based
programs is the ability to load a cyber currency immediately for fulfillment either on
the web or smart phone as a mobile wallet.
Transparency is achieved by being clear
which activities will be promoted and for
how long. For example, a new sales person
or dealer may receive points for product
knowledge, whereas a more seasoned individual receives points for an end result.
To ensure flexibility, make it clear that
your rules will evolve as your corporate
objectives change. Promote the activities
you need as you need them.
Steve Damerow is CEO of Incentive Solutions. He is a recognized expert and published author, and hosts the national radio
show "Business Matters." Incentive Solutions
currently manages more than 100 incentive
loyalty programs in the wholesale/distribution
sector. He can be reached at: sdamerow@
isicorporate.com or 678-514-0203.
Volume 5, Issue 1 www.wdimagazine.com