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.With 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.