Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Getting More Attention in Your Distribution Channel

3,780 views

Published on

Capture the attention of your distribution channel with reward and recognition programs designed based on the principles of behavioral economics.

The goals of the manufacturer and those of the uncontrolled distribution channel are often at odds. The channel wants to focus on high-margin products and increase total sales, while manufacturers want channel partners to promote the whole line and increase market share for the manufacturer’s brands. Channel partners want more autonomy and exclusive access to end users, while manufacturers want more control and their own access to end users.

Your uncontrolled distribution channel has a lot of places to
focus their attention. Reward and recognition programs have long been used to engage the channel and align their activities with
manufacturers’ goals. Applying behavioral economics to your reward and recognition program designs can cut through the clutter to capture more than your fair share of your channel’s discretionary focus and effort. Here are ten best practices to follow that use behavioral economics principles to design the most effective reward and recognition programs.

Follow these ten best practices to apply the science of behavioral economics to your next program design. You’ll get the attention of your distribution channel and ultimately increase sales.

Published in: Business
  • Be the first to comment

Getting More Attention in Your Distribution Channel

  1. 1. Get more than your fair share of attention in your channel Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  2. 2. manufacturer The goals of a manufacturer and an uncontrolled distribution channel are often distribution channel at odds. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  3. 3. The channel wants: n To focus on high-margin products distribution channel Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  4. 4. The channel wants: n To focus on high-margin products n To increase total sales distribution channel Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  5. 5. The channel wants: n To focus on high-margin products n To increase total sales n More autonomy and exclusive access to end users distribution channel Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  6. 6. While manufacturers want channel partners to: manufacturer n Promote their whole line Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  7. 7. While manufacturers want channel partners to: manufacturer n Promote their whole line n Increase market share for their brands Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  8. 8. While manufacturers want channel partners to: manufacturer n Promote their whole line n Increase market share for their brands n Give them their own access to end users Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  9. 9. Applying behavioral economics to your reward and recognition program can engage your channel and align their activities with your goals. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  10. 10. Here are ten best practices to follow to design the most effective reward and recognition program for your channel partners using behavioral economics. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  11. 11. 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. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  12. 12. 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. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  13. 13. Obey the Rules A program’s rules structure is almost as important as the awards offered. Make the rules sure the rules structure is aimed at getting the right audience to perform the desired behavior. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  14. 14. Less can be More Choice architecture offers carefully selected and often limited options which allows participants to choose their own goal and be goal 1 goal 2 goal 3 rewarded if they achieve it. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  15. 15. 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. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  16. 16. 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. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  17. 17. 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? Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  18. 18. 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 space Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  19. 19. 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. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  20. 20. 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. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  21. 21. Learn more about how you can use behavioral economics to capture the attention of your sales channel. Download our article now! Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com
  22. 22. follow us... 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. Australia | Canada | China | India | LATAM | UK | US | BIWORLDWIDE.com

×