{"id":494,"date":"2021-02-03T12:02:06","date_gmt":"2021-02-03T06:32:06","guid":{"rendered":"https:\/\/www.zaggle.in\/blog\/?p=494"},"modified":"2022-08-07T18:41:15","modified_gmt":"2022-08-07T13:11:15","slug":"understanding-psychology-of-channel-partner-motivation-engagement","status":"publish","type":"post","link":"https:\/\/www.zaggle.in\/blog\/understanding-psychology-of-channel-partner-motivation-engagement\/","title":{"rendered":"Why rewards and recognition works wonders: understanding the psychology of channel partner motivation and engagement"},"content":{"rendered":"\n<p>Employee morale is critical in attracting and retaining talents. When confidence is low, it can lead to reduced productivity and employee satisfaction.&nbsp;<\/p>\n\n\n\n<p>The impact of robust channel partner engagement on sales volume, market share, brand reputation, and customer engagement is enormous. The performance of channel partners affects employee engagement as they serve as go-between vendors and customers.&nbsp;<\/p>\n\n\n\n<p>This relationship between employees, customers, channel partners, and vendors needs to flourish. With increasing competition, it is essential to differentiate your program from competitors&#8217;. Merely focussing on sales is not going to cut it from here on out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rewards and Recognition<\/h2>\n\n\n\n<p>Margins and commissions are not sufficient incentives for channel partners.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Research shows that implementing non-cash reward and recognition programs for channel partners leads to an annual revenue increase <a href=\"https:\/\/theirf.org\/research\/rewards-and-recognition-as-a-vital-compensation-component\/193\/\">averaging 9.6%<\/a>, compared to an average of only 3.0%.<\/li><li>Research shows that implementing non-cash reward and recognition programs for channel partners leads to an annual revenue increase <a href=\"https:\/\/theirf.org\/research\/rewards-and-recognition-as-a-vital-compensation-component\/193\/\">averaging 9.6%<\/a>, compared to an average of only 3.0%.<\/li><\/ol>\n\n\n\n<p>This goes to show that channel partners respond to measurable rewards and recognition, much like other employees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How does it work?<\/h2>\n\n\n\n<p>Reward programs must target employees proving to be instrumental in achieving organizational goals.&nbsp;<\/p>\n\n\n\n<p>It is essential to understand the behaviors to be encouraged to work towards rewards.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Metrics need to be customized for channel partners&nbsp;<\/li><li>Different metrics from distributors and other collaborators<\/li><li>In addition to margins and equity rebates<\/li><li>Non-cash rewards for meeting and exceeding goals&nbsp;<\/li><\/ol>\n\n\n\n<p>Numerous studies have <a href=\"http:\/\/www.cnbincentives.com\/Portals\/14\/CashIsLessEffective.pdf\">demonstrated the efficacy<\/a> of performance vis-a-vis non-cash incentives.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>According to the International Society of Performance Improvement, properly structured incentive programs can <a href=\"https:\/\/theirf.org\/am-site\/media\/2incentives-motivation-and-workplace-performance-research-and-best-practices.pdf\">increase performance by up to 45%<\/a> in teams and 26% in individuals.&nbsp;<\/li><li>The American Compensation Association further found that organizations <a href=\"https:\/\/personnelsystems.com\/does-money-motivate-employees\/\">earned $2.34 for every dollar <\/a>they spent on incentive awards at the median.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Working towards the right incentives<\/h2>\n\n\n\n<p>Creating the right incentives requires the partner\u2019s goals to be attainable, and the rewards need to be flexible. Offering referral bonuses for sales but having the actual sale go through directly or through a discount channel minimizes channel conflict and increases engagement.&nbsp;<\/p>\n\n\n\n<p>Channel incentive travel rewards are a great idea as well. This allows top channel partners to earn a group travel reward trip, creating an opportunity to form lasting relationships with company executives.<\/p>\n\n\n\n<p>Creative rewards have a significant impact on relationships. A culture of partner engagement requires more to build and sustain strong emotional engagement.&nbsp;<\/p>\n\n\n\n<p>Rewards need to be&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Tangible&nbsp;<\/li><li>In concert with regular verbal recognition<\/li><li>Regular acknowledgment of contributions<\/li><\/ol>\n\n\n\n<p>Information sharing and recognition are mission-critical. It merits taking the time to know and recognize the channel partners\u2019 individual salespeople. An excellent way to go about this would be to have sales personnel from the company meet with a channel partner\u2019s sales team. This can be done to share the previous month\u2019s results and recognize achievements once a month.<\/p>\n\n\n\n<p>Having an organized sales incentive program in place as part of your overall engagement strategy allows the company to understand who the best channel partner salespeople are.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What can you incentivize?<\/h2>\n\n\n\n<p>Listed below are a few metrics that may seem obvious but aren\u2019t usually considered for incentives or rewards.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Customer loyalty<\/h2>\n\n\n\n<p>Having customers come back to you time and time again, despite cheaper deals elsewhere, is a sign of true loyalty. This is made possible only when channel partners are<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Highly-skilled<\/li><li>Dedicated<\/li><li>Proficient&nbsp;<\/li><\/ul>\n\n\n\n<p>A great way to demonstrate appreciation for them going the extra mile would be to incentivize loyalty. For example, a reward for a certain amount of repeat business as part of your Incentive Program structure.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Training<\/h2>\n\n\n\n<p>It is essential to understand that a channel partner can sell high volumes of a product only if they really understand its nuances and how it can benefit the customer.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Achieving functional understanding and knowledge is a priority<\/li><li>Training is required on what the company does&nbsp;<\/li><li>Training to understand how best to sell your products&nbsp;<\/li><\/ol>\n\n\n\n<p>An excellent way to start the reward scheme would be to reward channel partners that undergo a certain amount of training, such as product demos, before incentivizing sales.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Brand Exposure&nbsp;<\/h2>\n\n\n\n<p>Incentivising brand exposure, channel partners can create demand for products among their customer base. This can be done through:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Engaging them in email marketing campaigns&nbsp;<\/li><li>Having them organize regular events that prominently feature your brand&nbsp;<\/li><\/ol>\n\n\n\n<p>While not directly linked to sales figures, this works wonders for driving channel partner engagement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Gathering Customer Information<\/h2>\n\n\n\n<p>With data driving digitization and transformation, the more information available about customers, the better the product can meet their demands. However, if there are plenty of channel partners, getting pertinent information can prove to be tough.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Incentivising channel partners for collecting necessary information<\/li><li>Passing on the collected information to you<\/li><li>Maintaining legal and regulatory compliance throughout the process&nbsp;<\/li><\/ul>\n\n\n\n<p>While not directly linked to sales, the more data available, the easier it is to sell to customers. This significantly impacts the company&#8217;s bottom line.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The final word<\/h2>\n\n\n\n<p>Having a substantial reward and recognition program helps the company grow while enhancing employee satisfaction and boosting morale. <a href=\"https:\/\/www.zagglepropel.com\/\">Zaggle Propel<\/a> is an easy to use platform that builds and strengthens engagement for employees, consumers, and channel partners.<\/p>\n\n\n\n<p>With point-based rewards, easy points redemption, and a real-time dashboard Zaggle Propel simplifies the employee and channel partner incentive playbook. With an extensive catalog for redemption, Zaggle Propel provides over 100 different gift card brands across various categories, with new brands added to the roster every month.&nbsp;<\/p>\n\n\n\n<p>Please <a href=\"https:\/\/www.zaggle.in\/contact-us\">reach out<\/a> to us in case of any queries.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Employee morale is critical in attracting and retaining talents. When confidence is low, it can lead to reduced productivity and employee satisfaction.&nbsp; The impact of robust channel partner engagement on sales volume, market share, brand reputation, and customer engagement is enormous. The performance of channel partners affects employee engagement as they serve as go-between vendors&#8230;<\/p>\n","protected":false},"author":4,"featured_media":495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[207],"tags":[170,100,66,104],"class_list":["post-494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-channel-partner","tag-channel-incentives-platform","tag-employee-benefits","tag-employee-engagement","tag-incentive-program"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why rewards and recognition works wonders: understanding the psychology of channel partner motivation and engagement - Zaggle Blog<\/title>\n<meta name=\"description\" content=\"The impact of robust channel partner engagement on sales volume, market share, brand reputation, and customer engagement is enormous.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zaggle.in\/blog\/understanding-psychology-of-channel-partner-motivation-engagement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why rewards and recognition works wonders: understanding the psychology of channel partner motivation and engagement - Zaggle Blog\" \/>\n<meta property=\"og:description\" content=\"The impact of robust channel partner engagement on sales volume, market share, brand reputation, and customer engagement is enormous.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zaggle.in\/blog\/understanding-psychology-of-channel-partner-motivation-engagement\/\" \/>\n<meta property=\"og:site_name\" content=\"Zaggle Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-03T06:32:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-07T13:11:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zaggle.in\/blog\/wp-content\/uploads\/2021\/02\/Why-rewards-and-recognition-works-wonders.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jeevan Kumar\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jeevan Kumar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zaggle.in\/blog\/understanding-psychology-of-channel-partner-motivation-engagement\/\",\"url\":\"https:\/\/www.zaggle.in\/blog\/understanding-psychology-of-channel-partner-motivation-engagement\/\",\"name\":\"Why rewards and recognition works wonders: understanding the psychology of channel partner motivation and engagement - 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