In business and marketing, the reward is an incentive plan to maintain the desired behaviour of employees and employers. The reward is for the services and work they do for the company or the organization.
A reward can be monetary, like an increment in salary or a yearly bonus. A reward in the form of non-monetary is like some special services from the company to the employees or an appreciation award or giving desired work to the employees which they like to do.
The motive behind giving rewards is to retain and maintain high-performing and talented employees in the company. Another reason to reward employees is to motivate them to work effectively. This, in turn, leads to higher productivity and growth of the company.
Any company or organization can use various ways to give rewards to its employees. Rewards of a company can be money, incentives based on performance, salary increment, recognition award, bonus, holiday, promotion, etc.
This is so simple that if employees of any company or organization are not happy working, it can cause failure and loss.
It is also true that rewards have a cost to the company. So, the employees who add value to the company and help achieve any organizational goals should only be awarded.
Reward programs are like loyalty programs for employees.
Types of rewards and their need:
There are two main types of reward; tangible and intangible.
- Tangible reward:Tangible rewards are monetary rewards. The best way to award money is to give a bonus to employees, increment, based on their performance. This reward is also known as an extrinsic reward.
- Intangible reward:It can be an appreciation award, yearly celebrations, giving desirable work pieces to the employees. It can be in the form of opportunities for the employees to learn a new skill and develop. It is also called intrinsic reward.
Both types have their specialties and requirements in a company. A company cannot incentivize employees with any one kind of reward. It needs a balance.
Solutions to the reward programs and channel incentive program:
An effective channel incentive program is about rewarding B2B’s relationship with channel partners. The channel incentive program is to influence the behaviour of channel partners to derive sales, maintain the brand name. For an effective and productive channel incentive program, find the best fit channel incentive solutions by understanding the company’s objectives and parameters. You can take help from these points for designing channel incentive programs.
- Simplicity is never outdated. No matter what industry you are in, with a simple program, you can achieve great success. Keep your protocols simple and the guidelines that can be understood easily. If you want to work with loyalty, then the money is not enough. You can incentivize them in other forms also.
- Recognize those channel partners who work for you like they increase your sales. Encourage them with unique rewards and monetary rewards also. This is also mandatory that you encourage all the partners no matter what. For an effective channel incentive, there must be rewards for everyone but not every reward is given to all.
- Building transparent, sustaining relations with channel partners can also be a good approach to encourage them. It will retain them with you.
B2B reward and loyalty programs:
B2B loyalty programs are different as they need to be more personalized. For a business in the B2B field, it is most important to have a client’s loyalty. And have a long-term relationship with them. You need a loyalty program to make it up.
To make a loyalty program effective, you can use these tactics:
- Engage clients by offering incentives.
- Become a partner with the clients and support marketing activities.
- Use referral programs.
- Give discounts on transactions.
For effective reward programs for clients, channel partners, or employees, first, get to know them.