Incentive schemes
Watch the interview on the YouTube channel „Loyalty schemes at night” on a study into incentive scheme strategies.
Incentive schemes – who are they for?
Incentive schemes are a tool for driving sales growth in the traditional retail sector. Organising B2B incentive schemes involves activities targeted at various links in the distribution chain. Participants in the programme include distributors, sales representatives, retailers and dispatchers. The implementation of incentive programmes is growing in popularity. The direct reason for this is the results they deliver, with increased sales being the factor that attracts the most interest amongst business owners.
Incentive schemes – principles
Long-term nature
The programmes run for a long period, usually in annual cycles (12 months).
Comprehensiveness
They cover a wide range of activities and have various motivational elements.
Cyclicality
organised regularly as part of specific editions (usually annual).
Precision
The programmes are planned in detail, with clearly defined objectives and rules.
Directions to distributors and sales representatives
The programmes are primarily aimed at business partners.
Increasing the volume and value of orders
The aim is to expand product distribution and increase sales.
Involvement of retail outlets
The programmes cover retail outlets and those responsible for ordering and sales.
Distribution and sales targets
The programmes are designed to improve distribution, boost sales and increase volume.
Development of an incentive scheme strategy
An incentive scheme requires the development of an appropriate strategy. Participants in such a programme work towards objectives set by the organiser in accordance with the agreement. Examples? Introducing a product to a specified number of new retail outlets in the high street, establishing and maintaining standards for product displays and POSM advertising materials, etc. Therefore, before the programme is rolled out, its terms and conditions must be drawn up. This document is made available to participants interested in taking part. It contains guidelines, the fulfilment of which entitles participants to specific benefits and privileges.
What do we offer participants in our incentive programmes?
Attractive prizes
promotional materials, merchandise, and prizes – whether in kind or in cash – that motivate people to achieve results.
Bonuses and incentives
additional remuneration or bonuses for achieving specific sales targets.
Training and support
access to training courses, workshops or educational materials that develop professional skills.
Exclusive offers and promotions
access to special offers or products that are not available to the general public.
Career development and promotion
the opportunity to gain experience, be promoted or take on greater responsibilities.
Access to sales support tools
custom applications, CRM systems or marketing materials that help achieve objectives.
The main advantages of incentive schemes:
Increasing staff engagement
Increasing staff engagement
Improving performance and productivity
Rewards and bonuses encourage people to achieve better results.
Reducing staff turnover
Employees who feel valued are more loyal to the company.
Creating a positive atmosphere
Healthy competition and recognition increase job satisfaction.
Increased innovation
an encouragement to think creatively and seek new solutions.
Better team relationships
Shared goals and rewards bring staff together.
Attracting talent
Attractive incentive schemes can help in recruiting the best specialists.
Increasing the company’s competitiveness
A motivated team helps to strengthen the company’s market position.
What benefits can incentive schemes bring to a company?
A well-designed incentive scheme generates double-digit year-on-year sales growth. These results are also evident in Nielsen surveys and their equivalents in other market categories. All costs associated with organising the programme are covered by the additional margin generated from the increase in sales, meaning they are not felt. To use an industry term, the incentive programme is self-financing from the incremental margin.
How long have we been running incentive schemes?
At i360, we have been delivering incentive programmes for over 10 years. During this time, we have delivered over 100 programmes in sectors such as FMCG, finance, the automotive industry, construction, retail, services and a number of others.
Sample Case Study
The „Froneri Rewards Season” programme”
Froneri
This is yet another edition of the new Programme for Distributors’ Sales Representatives, who are rewarded for selling specific products and brand bundles from Nestlé, Zielona Budka, Schöller and Mondelez. In addition to standard bonuses credited to prepaid cards, the Programme includes a range of special promotions offering attractive prizes, both material and experiential.
8+
years the programme has been running
50 000+
active participants
