Page 10 - Beverage Master DecJan 2021
P. 10

Legal & Marketing

               Continuously Improving Your

               Incentive Program

               By: Nichole Gunn, Vice President of Marketing & Creative Services, Incentive Solutions
                 T        he first years after launching an incen-  gram’s novelty starts wearing off and supply chain

                          tive program are an exciting time for
                                                                    trading partners become habituated to the pro-
                          craft beer producers: supply chain trad-
                                                                    ROI may start to decline, leaving craft beer produc-
                          ing partners, drawn by the excitement     gram’s value proposition, the incentive program’s
               of new promotions and an improved channel part-      ers scrambling to find ways to replicate the pro-
               ner experience, are more responsive, more moti-      gram’s success.
               vated and more likely to recommend the brand’s
               products to restaurants and retailers. During this     The good news is that by planning ahead, craft
               time, craft beer producers often experience a peri-  beer producers can anticipate this drop off in inter-
               od of rapid sales growth or improvement in other     est level and continuously improve their incentive
               KPIs the program was designed to target, such as     program in order to sustain a competitive advan-
               improved partner data profiles or increased referral  tage in their channel.
               business. The incentive program’s ROI grows expo-
               nentially.                                                 Keeping Incentive Programs Fresh
                                                                                    (and Profitable!)
                 However, often after 12-30 months, growth
               begins to stagnate and the ROI curve starts to         In order to stay relevant, a channel incentive pro-
               flatten. If left unaddressed once an incentive pro-  gram has to be able to evolve with the interests

               8    December - January  2021      BEVERAGE MASTER

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