Last month, HMI hosted a leadership forum in Cancun for a group of its high tech clients. Amongst the serenity of the lush settings of Secrets The Vine Resort in Cancun Mexico was a think tank of industry leaders there to network and share performance incentive best practices.
Among the sessions, which varied from program analytics, to social media and mobile apps, a debate arose – global VS regionalized incentive strategies.
As you can imagine, the nuances of global operations are much more involved than those of national or regional operations. In fact, in the past the potential difficulties of executing global operations have been a deterrent to some companies looking to go global. Now, however, due to major advancements in technology and communication, global expansion is quickly becoming not only a necessity to survival, but the standard platform for launching marketing programs.
This, however, does not come without its set of challenges. With ever-increasing margin pressures, many US companies are being forced to launch their products into new territories. Industries in which we are seeing dramatic global shifts include travel, finance, IT, automotive, and pharmaceutical. As these companies expand, they are faced with the need to motivate their distribution networks in global markets, which at times, can require drastically different strategies than those of their US counterparts.
Recognizing these challenges, some companies turn to local resources in each country to assist with regionalized incentive programs. This approach, while convenient, presents its own problems with regard to communication, brand positioning and mission values.
We propose running an incentive program on a global level rather than localizing it for the following reasons:
1) Global programs provide efficiencies of scale which represents a huge cost savings.
2) Global programs allow for better business controls and compliance.
3) Global programs help ensure brand integrity and message continuity.
If your company is expanding its presence to a global level, flawless and fluid execution of performance incentive programs is necessary. If you need a partner that has expertise managing global B2B channel growth strategies, or for more tips on going global with your existing strategies, please contact HMI Performance Incentives today.