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9 Types of Channel Partner Reward Programs Work for IT Firms

This blog discusses nine types of reward and incentive programs that are highly effective in the IT sector.

If you’re a technopreneur or a marketer in the booming IT industry, you know the importance of distribution channels and influencers in the sector. But did you know that indirect sales channels massively outweigh direct sales channels when it comes to revenue and growth?

If you’re using traditional incentives and reward programs, you must rethink your strategies as soon as possible and adopt a multipronged reward program. This blog discusses nine types of reward and incentive programs that are highly effective in the IT sector.

1. Value-added reseller incentives

In the IT sector, value-added resellers play an extremely crucial role. They add additional features or services to hardware and software products to enhance their utility. A recent study found that value-added reseller incentives can enhance a company’s total sales volume by six to nine percent.

2. Sales performance incentive funds

Sales performance incentive funds can work wonders in fulfilling specific goals such as increasing sales volume, selling certain IT products, as well as driving short-term spurts during sales slowdowns or off-season.

3. Activity-based incentives

Activity-based incentives, such as loyalty points and rewards provided to take part in surveys, play a game, share a post, attend webinars, and organize demo sessions. These are extremely useful to reinforce loyalty and work extremely effectively in the IT sector.

4. Enablement and training incentives

This type of incentive is extremely necessary for the IT industry as it trains channel partners and influencers about the technology. When channel partners and influencers are adequately trained, they know how the technology works, explain it to others better, and market the products much more effectively.

5. Cross-selling incentives

Some channel partners or influencers are extremely skillful at selling complementary or related IT products to their customers or followers.

6. Rebates 

Rebates are designed to enhance demand. In the IT industry, rebates are based on volumes. When your channel partners and influencers sell a specific volume the incentives they receive are a percentage of their sales, which they can pass on to their customers.

7. Referrals

Channel referral incentives are extremely crucial for IT firms. By using this type of incentive, tech companies leverage the clout and referral networks of their partners, influencers, and existing customers. Almost all major companies use referral marketing due to its many advantages.

8. Solution development funds

IT firms rely on this type of incentive if their channel partners or influencers need to demonstrate their software or solutions. This is extremely effective for complex products as well as for solutions that have complex and lengthy development and sales cycle.

9. Loyalty incentives

This type of incentive is more of a token of gratitude than a reward. Many IT brands provide this incentive to their partners and influencers for their unwavering loyalty and dedication. By doing so, they make their partners and influencers feel special and valued.

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