Getting More Attention in Your Distribution Channel

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Get more than your fair share of attention in your channel


The goals of a manufacturer and an uncontrolled distribution channel are often at odds.

manufacturer

distribution channel

The channel wants: n To focus on high-margin products




n To increase total sales




n To increase total sales

n More autonomy and exclusive access to end users



manufacturer


While manufacturers want channel partners to: n Promote their whole line

manufacturer



n Increase market share for their brands

manufacturer



n Increase market share for their brands

n Give them their own access to end users


Applying behavioral economics to your reward and recognition program can engage your channel and align their activities with your goals.

http://www.biworldwide.com/en/bi-blog/


http://www.biworldwide.com/en/employee-engagement/engagement-motivation/employee-incentives


Here are ten best practices to follow to design the most effective reward and recognition program for your channel partners using behavioral economics.



http://www.biworldwide.com/en/sales-channel-effectiveness/



Mix it Up Build a calendar with new rules structures every few months to keep things fresh. As participants become eager to move to the next level, they will become more engaged in your program.

http://www.biworldwide.com/en/employee-engagement/new-rules-of-employee-engagement/

Too Much of a Good Thing Rewarding with too much cash actually results in a reduction of sales.

Hedonic rewards, like travel, merchandise and entertainment, are highly emotional and make people feel good about what they have accomplished.


http://www.biworldwide.com/en/sales-channel-effectiveness/sales-incentives/incentive-travel/

http://www.biworldwide.com/en/sales-channel-effectiveness/sales-incentives/merchandise-rewards-programs/


Obey the Rules A program’s rules structure is almost as important as the awards offered. Make sure the rules structure is aimed at getting the right audience to perform the desired behavior.

the rules


Less can be More Choice architecture offers carefully selected and often limited options which allows participants to choose their own goal and be rewarded if they achieve it.

goal 1 goal 2 goal 3

http://www.biworldwide.com/white-papers/sales-channel-effectiveness/what-george-costanza-can-teach-you-about-making-better-decisions


Say-Do-Gap A variety of studies have shown that when asked, most people say cash will change their behavior – but when it comes down to it, more people perform better when motivated by a non-cash reward.

http://www.biworldwide.com/white-papers/employee-engagement/monetary-vs-non-monetary-awards-comparative-studies

http://www.biworldwide.com/white-papers/employee-engagement/monetary-vs-non-monetary-awards-comparative-studies


Give 'Em a Chance Don’t heavily rely on the 80/20 rule. Building rules structures to engage all levels of performers generates better results. Create competitive groups that segment your participants based on performance levels.


Jackrabbit Start Those who hit the ground running in an incentive program end up being the top performers. Why not apply this principle to everyone by offering a fast start bonus to get things started?

B-I-N-G-O Create illusionary goal progress by giving participants a head start. This convinces them they’re already well on their way toward achieving their goal. They will work harder and faster to get there.


free

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free

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Me It's All About The spotlight effect says that people will do amazing things just to earn the right to brag about it. Social recognition takes advantage of this by creating a currency of bragging rights through badges, public recognition and non-cash rewards.

http://www.biworldwide.com/en/employee-engagement/g5


Maybe, Maybe Not When there’s a probabilistic element of a chance for a big reward, participants will do what it takes to get another opportunity to achieve it.


Learn more about how you can use behavioral economics to capture the attention of your sales channel.

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http://www.biworldwide.com/en/white-papers/sales-channel-effectiveness/distribution-channel-attention?utm_source=SlideShare&utm_medium=Slide&utm_campaign=Channel






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BI WORLDWIDE uses the principles of behavioral economics to produce measurable results for our clients by

driving and sustaining engagement with their employees, channel partners and customers.

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Getting More Attention in Your Distribution Channel