Manufacturers and distributors are constantly looking for the edge to increase sales of products and services. Many start by nurturing the relationship between provider and retail businesses. There are a number of ways to improve and increase loyalty, distribution and sales, but one of the most effective ways to create the business bond is through channel incentive programs. These strategies are especially effective in the retail industry. Learn why so many distributors and manufacturers are choosing to implement channel incentive programs with retail businesses.
Provides A Source of Increased Profits
Retail companies live and die by their bottom line. When stocking stores, many retailers are searching for products and services that provide the biggest “bang for their buck” and the highest ROI. Providing an incentive for retailers to stock your products is often one of the biggest triggers for companies to choose to sell an item. Providing an incentive such as a bonus upon quantity sold or higher margin after a certain time and quota is met can provide the kickstarter to a relationship that will grow for years to come.
Channel incentives also market your business as a company retailers want to work with, which can increase the number of retail opportunities you have in specific areas, regions and in national stores. One business may analyze another to see how your product and incentives increase their return on investment and wish to learn more about your business as well.
Creates Business Loyalty
Providing incentives to businesses in the form of monetary value, products and other rewards generates a reason for a business to continuously provide your products or services to their clients. This “win-win” situation helps decrease the likelihood of your product being dropped from stores or representatives and increases sales for you as the manufacturer or supplier.
Generates Employee Preference
Not only do incentive programs generate loyalty among business owners, but they can incentivize employees at the retail business as well. Many channel incentive programs offer bonuses or product in kind to employees at the retail business after the employee properly educates his or herself on the product or after so many sales by the employee. These rewards give employees a reason to push, promote and give preference to your products in store, increasing sales and product distribution.
Channel incentives provide a wide variety of benefits to companies of all shapes and sizes. Online Rewards can help create and customize a channel incentive program that specifically fits your business model and increase long-term profits for your business.
