How to Select the Right Incentives for B2B Market
The need for a B2B exchange is high, and rightfully so. Consider this; when you are buying something, do you buy it directly from the manufacturer? The answer to this is no; you would have to go to the store, who gets products from the distributor, who got it from the manufacturer. And this indirect sales tactic is the crux of the B2B market and channel partnership programs.
So, it is important to have a good relationship with your channel partner. That way, they would stay loyal to the brand. And for that to happen, you need to give them reasons to put your company first, and incentives are helpful here. Thereafter, they would develop brand loyalty. So, it is very important to choose the perfect ones.
Ways on How to Select the Right B2B Incentives
Before offering incentives to your channel partner Singapore, you need to research on the available B2B incentive types. When you are preparing an incentive program for your channel partners, focus on the following factors for the right selection.
- Competitive incentives
When you are trying ways to make your partner select your B2B incentives, always go big.
After all, your business would grow when they refer your services to others. And so, they need the right motivation to do this as much as possible. If they like your incentives, they would stay loyal and that would benefit your company. So, always give competitive incentives to all your partners, like sales discounts.
- Set terms and conditions
One of the reasons channel partners would a vendor is if their terms and conditions are well-made. If a company makes modifications to T&C often, it reduces its reputation as a reliable partner. Indeed, channel partners want stability and the business rewards programs should focus on maintaining that.
- Simple incentives
The best thing you can do for the right outcome from any incentive program is keeping it simple since the beginning. Indeed, that would only allow the channel partners to handle it well. And you need to explain the process to them well.
Channel partners would stay loyal to a company if they can get good benefits. For this, awards are good incentives; both monetary and non-monetary options. Some examples include newsletter feature, special trips, event invites, physical gifts, etc.
- Improving the incentive ratio
Channel partners are more attracted to a company that gives good rewards. But most of them stay because they want the opportunity to get more. When the B2B partners give them more profits, they work harder. Without a doubt, this is great for both sides.
B2B incentives should be based on convenience
You need to reassure your partners that availing your loyalty programme would not harm them. After all, when they refer someone, their reputation would get hurt if the deal turns sour. So, you need to focus on the service benefits and ensuring a long-term commitment. You should give incentives and awards but understand some things first:
- Which stakeholders to deal with, what they want, and what incentives would work for them
- The program should give value propositions as that affects product selection
- Buying potential of business customers and buying cycle peculiarities
- The nuances of marketing segment, industry, and a submodel inside the B2B sector the channel partner works in
B2B incentive considering the Service
One important point about any kind of business is simply the fact that all customers are different. In the B2B market, this is based on what services they give back. And you should choose incentive programs on that basis.
- Tier incentives
In this, the B2B customers form loyalty from early on, and their incentives level up with time. Firstly, you can offer small rewards for them to sign up to your loyalty program. If they are repeat members, provide more valuable incentives since they promoted you well. So, this gives the B2B customers the chance to earn more and quickly.
- Member events
One hard-to-ignore characteristic of B2B channel incentive programs is the long-term relationship one forms with the partners. So, member events give them the chance to bond, expand, and discuss customer feedback too. Plus, the channel partners feel more recognised. One example is the service provider of email marketing, Litmus. They often organise a meetup, paid and free conferences, retreat events, and trade shows.
- Third-party partnerships
This is one manner in which companies can gain loyalty; forming a strategic relationship with companies giving affiliate services and products. This way, you can give your customers better and more personalised bonuses, relating to their business activities. For example, a tire-selling company can partner up with a windscreen reseller. And together, they can offer the automobile manufacturer (their common client) a discounted and combined product package.
Check the Types of Incentives
There are some particular types of incentives you can choose from; they are mentioned below.
- Partner Sales Program Incentive Fund
A Sales Program Incentive Fund helps to gain the loyalty of end sellers and particular sales representatives. And using this, you can encourage them to maintain the relationship. You can promise an award, and the sales team of your channel partner would promote your items to their customers. To meet the short end-goal you set, they work hard.
- Marketing-based incentives
They help to improve brand awareness. For the former, the manufacturer or vendor matches a part of the rebate cooperatively.
Solution Development Fund
Using this, you can sponsor your partners’ demo or ‘concept proof’ of a product. And both sides of the partnerships benefit here, so they both invest in the fund.
- Referral incentives
When the channel partners register a deal or identify opportunities, they would get rewards. This allows distributors and manufacturers to improve their reach. Some examples are gift cards, point-based rewards, debit cards, etc.
- B2B Rebate program
These volume-driven promotions help your B2B partners want to sell your products. They get a portion of the sale after all.
Keeping these points in mind, choose a good incentive program for your channel partners.