3 Best Practices to Optimize Incentive Spending
In a recent study led by IDG Research, only 6% of channel marketing leaders surveyed said they have confidence in optimizing their channel marketing spend. In that same study, 51% of channel marketing leaders stated that optimizing spend for their incentive program is critical.
It’s evident that channel marketing leaders realize the potential of successfully optimizing spend, however, many of them aren’t sure how to go about it.
Optimizing spend is critical for channel success. It lets you effectively run your incentive program while reducing unnecessary costs.
In order to make the most out of your channel marketing dollars and build stronger relationships with your channel, your brand needs to optimize spend in new and invigorating ways. To aid your channel marketing efforts, here are 3 ways you can effectively optimize your incentive spend:
1) Utilize channel insight
In the IDG Research survey 47% of channel marketing leaders stated that the visibility gained from end-to-end customer data analytics, could save a lot of wasted channel marketing dollars.
If you are collecting insights, or have an automated platform that provides you with data pulled right from your program, you can leverage this critical information for current and future programs.
Channel data pulled from your program can range from customer demographics, top SKU’s, sales channel performance, geographical considerations and so much more. This information can tell you where to effectively allocate spend and where to pull back your investment.
2) Automated validation
Fraud detracts billions of dollars from organizations every year. Whether duplicitous, invalid or flat out-fraudulent, the amount spent slowly erodes channel marketing spend. Empirically, fraud right now accounts for 2.5% of total claims. With an average of 15,000 claims a week that’s approximately 375 claims that are fraudulent, multiplied by the average amount of a claim being $100-200, you’re looking at a loss of over $56,000 [i] a week. That’s a hefty chunk taken out of your channel marketing spend.
Enforcing automated validation can help eliminate wasted time, resources, and money. Optimize your spend by reducing the amount of fraudulent claims you pay out.
3) Channel communication
75% of channel marketing leaders stated that providing a complete incentive customer experience helps generate positive brand awareness. If you have a vendor or a platform that sales associates use to input their claim information, why not utilize that opportunity to inform them on new and upcoming promotions and product knowledge.
Communicating to your sales channel allows you to keep your product top of mind on the sales floor. Ensuring that the money you put into your program and towards promoting a product, is being digested by sales associates and used effectively.
Your sales associates should be kept up to date to ensure your spend is optimized and your program is reaching its full potential
Insight into the future
By utilizing these three best practices to optimize your spend, you’ll see a sizeable difference within your budget, and additionally, an increase in your return on investment.