Page 12 - Beverage MasterOct Nov 2020

Legal & Marketing

Merchandise rewards, on the other hand, have the value they receive from the program.
trophy value and provide tangible rewards that
indirect sales reps will associate with your brand for Additionally, setting qualification thresholds and
much longer. With an online rewards catalog that’s offering tiered rewards can help craft beer produc-
chock full of millions of exciting rewards, from digi- ers make their program more cost-effective. For
tal movie rentals and Netflix subscriptions to home instance, it might make sense to require distributor
theaters, a points-based merchandise program is sales reps to sell a certain amount of beverages
highly scalable and allows participants to choose before they qualify for the program or to offer a
personalized rewards that fit into their lifestyle and group incentive travel trip for the top 25 perform-
match their level of performance. Online merchan- ers each quarter, in addition to a card or points-
dise rewards allow craft beer producers to incentiv- based merchandise program for the other sales
ize sales growth across each segment of their sales- reps. Doing so allows craft beer producers to allo-
force, while also inspiring loyalty in top accounts cate their reward spend toward their most valuable
with higher value, more personalized rewards. supply chain trading partners, while limiting expen-
diture on sales reps who may not offer as much
Of the different reward types, group incentive long-term value.
travel is the most memorable and emotionally
impactful. By rewarding top-performing indirect In addition to tiering rewards based on perfor-
sales reps with a trip to an exclusive locale like mance, craft beer producers can leverage this
Tahiti or Venice, craft beer producers will have the strategy to target different hierarchical segments
opportunity to really personalize their relationship of their indirect salesforce, offering higher value
with their wholesale and distributor sales reps and rewards like incentive travel to sales managers
create memories they won’t soon forget. However, while running a points-based merchandise or card
incentive travel isn’t very scalable. Typically program for the individual reps who work under
reserved for top accounts, incentive travel is better them. This allows craft beer producers to incentiv-
suited for building loyalty and solidifying long-term ize from the top-up or the bottom-down, maximiz-
relationships. Additionally, it’s worth noting that ing their influence within their sales channel.
while the effects of Covid-19 have put a damper
on incentive travel events, demand for these trips Online incentive technology offers craft beer pro-
will be through the roof when travel resumes, and ducers the ability to easily segment their audience,
many vendors will be motivated to provide great change parameters, automatically allocate points
deals for craft beer producers who plan ahead. and track the impact of these decisions on their ROI
through dashboards and custom reports. For craft
Setting Reward Parameters beer producers, it’s important to have the flexibility
to quickly adjust elements of their reward program
An important component of reward program strategy, while minimizing the man hours necessary
strategy is determining how participants will be to manage their program.
rewarded. Craft beer producers should consider
which specific actions participants must take in Expanding on the Reward Experience
order to accumulate reward points and whether
different actions have different strategic values in Rewards are exciting and provide an easily under-
helping them achieve their goals. stood value proposition, making them an effec-
tive tool for marketing an incentive program; but
For instance, if a craft beer producer’s goal is to rewards are only a small component of the value
increase overall sales, then it might make sense to an incentive program creates for craft beer produc-
assign reward points to distributor sales reps based ers, as well as their supply chain trading partners.
on overall sales volume. But it also might be bene- An incentive reward program provides new touch-
ficial to provide point bonuses for first time sales, points to improve the partner experience, such as:
sales on a new or underperforming product line,
completing online educational courses or provid- • An integrated digital hub, where indirect sales
ing referrals. All of these actions can help facilitate reps can connect to learn more about the
sales growth in the long-term and provide distribu- brand, explore the latest incentive promotions,
tor sales reps with a clear path toward maximizing track their progress and redeem for rewards;

10 October - November 2020 BEVERAGE MASTER

BM080920 Main Pages copy.indd 10 9/28/20 1:49 PM