Do you know your customers well enough to be in a position to set appropriate goals for your annual incentive program?
In many cases, distributor incentive programs motivate customers to concentrate their purchases in order to earn whatever incentive award is being offered. The award could be anything from a trip to Hawaii to a chance to win a big screen television. Whatever the carrot is to motivate customers, understanding their potential is critical to setting appropriate goals and achieving a positive ROI.
The best way to understand a customer’s potential in these circumstances is by asking simple questions about their business as they enroll to participate in your incentive program. So, in addition to confirming their company name, address and email address, savvy distributors blend in a few strategic questions.
For example, it is pretty commonly accepted that a dealer/contractor’s annual supplies spending can be closely tied to the number of employees or service vehicles. So, why not include the question as part of your incentive program enrollment questionnaire (How many service vehicles or # of employees?). Also, wouldn’t it be nice to know how many years a contractor has been in business from a credit perspective or to know more about their business mix (residential vs. commercial). Answers to these questions may shed more light on your customer’s potential and help you set expectations for growth and profitability. Imbedding these types of questions as part of your incentive program enrollment piece is a very soft/non-intrusive way to dig deeper into your customer’s business.
Considering the fact that incentive programs have been proven to increase sales and generate greater performance, why not maximize the program’s potential from the start? By setting high but achievable goals, you can design a rewards or loyalty program that has great benefits for everyone involved. To learn more about how to structure a rewards program, click here.