PRM integrates channel incentives
Importance of channel incentives
Channel incentives are the central pillar of PRM programs. Incentives are powerful drivers to engage, motivate, and accelerate partners to meet targets and milestones. In addition, it provides a framework to consolidate all activities, actions, and outcomes into a single measurable rewards mechanism.
B2B channel incentive structure helps form a sustained relationship with the partner and creates long-term loyalty. Incentives are designed to nurture a partner through the partner life cycle. PRM program provides tools and frameworks to set up, configure and administer incentives. In addition, it provides flexibility to adapt those incentive structures as the relationship and loyalty with the partner evolves.
Incentives and partner loyalty
Partner incentives have evolved over the years and form an essential part of the partner relationship and channel loyalty journey. First, brands develop partner networks to drive key business objectives and set long-term and sustainable partnerships. Then, they define attractive and innovative incentive structures to keep the partner network engaged and meet those business objectives.
Below illustrate the various criteria assessed to define incentive structures:
- Partner profile
- Partner tier, target, and goals
- Activities initiated and engaged
- Opportunities involved and processed
- Product and services categories and objectives
As partner programs continue to evolve, there is an increased need for incentive programs to align with current market trends and practices. Today, incentives options are diverse and require integration with multiple solutions to give partners a seamless experience.
PRM programs can administer incentives in multiple methods and forms, such as:
- real-time
- on-demand
- by batch
- push mechanism
- pull mechanism
- on-trigger
Variety in incentive options is attractive to partners
Incentives for PRM programs have been evolving over the years. As programs become more globalized, incentive choices are more flexible, providing alternatives to partners such as
- rewards catalogues carrying physical and digital options of goods and services
- monetary rewards where the incentives are converted to cash or cash equivalent
- Debit cards consisting of both physical cards and virtual cards
- Integration and conversion to diverse types of e-wallets
- experiential rewards of several types
There are several best practices prevalent in the market. PRM programs offer one or more combinations of the above options as
- standard rewards options
- different options at different periods of the program cycle
- additional options for different partner segments or geographies
- restricted to specific activities
A good incentive structure drives performance and improves ROI for all stakeholders. In addition, it creates a strong relationship with the partner organization to help drive brand objectives and goals. All aspects of partner engagement and interactions could be tailored with incentives suited to their profiles and segments.
