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3 benefits of a channel incentive program

Written by Heloisa Lorenzini
What behaviors should manufacturers be incentivizing from their channel partners? 2

Companies that deal with a range of different sellers tend to actually be quite detached from the final customer. After all, it’s the value-added resellers (VARs), contractors, distributors and marketers who tend to have direct contact with, and influence over, the consumer.

So, if you’re one of those companies with a healthy and diverse channel ecosystem, the main avenue open to you for gaining more control over the way products are showcased and sold to your prospects and consumers is by incentivizing your resellers to sell with flare and behave in certain advantageous ways. For this, you need to create powerful incentives – i.e. juicy rewards.

In this article, we cover the three main benefits of a robust reward program.


Incentive reward programs make channel partners prioritize your products over those offered by your competitors, who are also vying for their attention.

It’s all about following the WIIFM (What’s In It For Me) principle. If partners know there’s something in it for them when they promote your product, of course that’s what they’ll opt to do. With intelligent technology you can set up rules so that behaviors which lead to increased ROI generate points and rewards for program participants.

To make the program even more appealing, you can offer participants rewards for activities which actually have a tangible value to them, such as improving their expertise and capabilities. These skill-based soft behaviors are mutually beneficial for your company and for your partners.


How to build a business case for your channel incentive programs

Learn how to craft a business case that wins program approval and maximizes return on your investment in six essential steps. Building a business case is paramount to any new program/IT solution investment, but is particularly important for channel incentive programs because of the significant investment warranted, the production outputs expected, and the degree of variability across a wide channel spectrum.
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By getting sales teams and distributors to push your products, you’ll inadvertently be raising customer awareness about your brand. Soon, consumers will think about Your Company whenever they’re looking for a product in that market.

That’s when the very best form of marketing kicks in – word of mouth – creating a marketing multiplier effect.

Intelligent and sophisticated programs also incorporate strong communication channels into their platform so that companies can pass down important information and promotions about products to their channels, as well as sharing successful marketing materials, such as newsletters and social media campaigns.


If your channel reward program guides partners towards valuable soft behaviors, like improving customer service, increased product knowledge, and personalized promotions, your customers are going to be really happy. And happy customers become loyal customers. Creating memorable and meaningful relationships between sellers and consumers is the key to true customer loyalty.

Channel partners appreciate robust, simple platforms which offer all of the resources they need to do their job well. But to keep them engaged with your program and committed to pushing your brand, you need to make sure you have great rewards on offer. Keep them relevant and timely and you’ll be sure to generate increased sales, brand recognition and customer loyalty – the trio that lies behind soaring ROI and revenue.