Channel Conduit 2
In a down economy, a company’s first instinct is to cut back. And the “soft side” of business – including channel incentive programs – is often the first to be slashed.
But when you cut your incentive programs, you are sacrificing your future and missing a HUGE opportunity.
The fact is in a tough economy there is an amazing opportunity to build immense loyalty with the channel. Profits aren’t where they were three years ago for anyone. But your channel marketing rebate and marketing Development funds have helped your channel partners stay afloat. (And it’s why they’ll still be devoted when things improve.) Your partner’s sales people’s compensation is down about 20%. (Think how much more those rewards means to them today)
That’s why more and more companies are choosing to step up channel incentive strategies in the tough times, rather than stepping away from it. The ones that stepped up their channel incentive programs 5 years ago have taken market share and increased loyalty. I’m not saying it’s too late. It’s never too late to invest in your channel wisely.
Remember channel incentive aren’t soft, they’re smart.