Brightspot Incentives & Events reviewed evidence on channel incentive returns in May 2023, drawing on published research and a manufacturer case study. The review distinguished the widespread use of non-cash rewards from the calculation of a return for a particular program.
In a case attributed to the Incentive Research Foundation, a Fortune 500 manufacturer used rewards for value-added resellers as part of an effort to grow sales and market share. Brightspot reported incremental improvement of $3,934,700 and incremental costs of $3,186,900, producing a net $747,800 return, or approximately 23% of the incremental cost.
The same cited case reported revenue growth of 32%, a 30% market-share increase and lower turnover among key resellers. These were results of the historical case being discussed, not an average return promised to businesses launching programs in 2023.
Brightspot also highlighted non-sales objectives such as training, productivity and partner engagement. It argued that participation in learning and certification could matter alongside direct sales awards when evaluating a channel strategy.
Program governance was another part of the review. Drawing on Accenture work, Brightspot discussed complex rules, decentralized accounting, overlapping incentives and weak data processes as sources of inefficient spending. It presented channel incentive management software and better reporting as ways to monitor those issues, while keeping the return calculation tied to actual costs and outcomes.