Incentives Program

New incentive program better rewards partner performance and lowers costs

The Challenge

How do I manage partner rewards to drive the right behavior and deliver a measurable ROI?

A new general manager at a leading software manufacturer needed to evaluate spending on channel rebates and incentive programs. There was a general concern the current rewards and performance framework did not meet the needs of the business and was a cost sink.

The rebates and incentive programs were not centrally managed. Decision making and accountability was spread across different business divisions with local implementation. Reporting was fragmented and incomplete. Given these issues, the new COO demanded a detailed accounting on how rebates and incentive programs were being spent, and proof of their effectiveness in driving the business forward.

The client asked Touch to:

  • Analyze current partner rewards and performance
  • Develop a strategy for ensuring incentives and rebates spending motivates the right partner behaviors and provides measurable ROI
  • Determine rewards and performance incentive effectiveness by channel category

The Approach

Design an evidence-based partner rewards and performance framework

  • Implemented a rigorous project management approach to keep project on track and provide transparency to stakeholders and executive sponsors
  • Analyzed complex data to gain insight and create recommendations
  • Developed a rewards and performance framework that could be centrally managed and adapted to changing needs
  • Determined incentive effectiveness by channel category
  • Allowed for field flexibility within the framework for local execution
  • Established common performance measures for all reates
  • Drove accountability and ownership across senior corporate leaders
  • Measure rewards and performance incentive effectiveness by channel category

The Result

Cost savings, strong program governance and a clear link between spending and partner performance

  • Realized significant cost savings in rebate and incentive spend
  • Achieved better performance from existing partnerships with higher channel satisfaction
  • Reduced partner dependence on rebates and incentives as the source of profitability
  • Centralized control and local execution through strong governance and guidelines
  • Coordinated and aligned execution across different operating divisions and geographies
  • Established clear accountability and management responsibilities with improved, actionable reporting
  • Demonstrated the clients thought leadership, execeeded expectations and earned the confidence of the COO
  • Tied spending to a pay-for-performance model

“Partner rebates and incentives represented a substantial expense for the client. Touch helped the client improve reporting and accountability around this spend, while keeping partners satisfied and motivated. The result was significant cost savings, performance gains, and management control.”