Inspired Incentives

Expanding Incentive Programs in Low-Activity Countries

Posted by Javier Betancourt

Tue, Mar 26, 2013 @ 12:00 PM

Managing a dynamic channel incentive program can be an arduous task. Managing such a program in a single country can be a challenge, but when it’s on a global scale it can be a logistical nightmare. In the past, we’ve discussed some of the issues that can arise with any global incentive solution; but today, I want to talk about just one.

If I’m a global channel manager, and I’m thinking of expanding my current channel incentive program into new countries or regions, I have to consider whether or not they are “high-activity” channel territories or “low-activity” channel territories. When I talk about “activity,” what I’m really talking about is the number of channel partners and associated performance improvement activities that I will be working with, or on, in that particular area.

If it’s a “high-activity” area, this means my local partners are numerous, and therefore the opportunity for program success is great. A “low-activity” territory with few partners, however, can be problematic - especially if those partners are very important to my business. I have to consider whether or not the cost to launch a program with minimal participants will be prohibitive to my global strategy. The question then becomes: Is there a cost-effectiveway to expand my reach into low-activity region?

I believe the answer is “yes.” For example, at HMI we’ve designed an affordable, global OnDemand platform that deploys regional channel incentive programs based on centralized templates. For instance, if a client wants to run a program with partners in Norway, Finland, and Iceland, our OnDemand platform can manage and segregate user-sets for each of those countries using a single “Nordic” portal. With a centralized portal, the client can add other countries with fewer channel partners like Denmark, Sweden, or even the Faroe Islands with nominal additional costs.individual awards noncash incentives ondemand awards programWith such a solution, it’s inevitable that certain concessions might need to be made. These might include things like limitations on larger merchandise rewards where shipping options to certain countries can be prohibitive. Such a sacrifice, however, is relatively minor when compared with the flexibility and cost-effectiveness that a program, such as HMI’s OnDemand platform, can offer. With a single portal hosting multiple countries, I now have an excellent, low-cost entry point for expanding my global reach, thus making “low-activity” areas within my expansion realm. Contact HMI to see if the OnDemand platform could be a match for your company’s expansion needs.

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Topics: Performance Incentives, Global Incentive Program, OnDemand Awards, Channel Incentives

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