This is a question about business partner loyalty rather than customer loyalty. How effective are spifs (individual incentives aimed at salespeople or system engineers) in building and sustaining business partner loyalty? The incentive could be cash or merchandise. What are the "gotchas" for vendors investigating spif programs for increasing channel loyalty? It all depends how creatively the spif program gets attention and generates...
enough value for the sales people. Generally, spif programs are tactical, cattle-prod oriented affairs, with high pressure, short accomplishment periods, and big stakes. Sometimes, if they are also too convoluted, sales people won't pay them as much attention as the spif programs where the rewards are obvious, attainable, and attractive. If you're asking whether most spif programs build true sales person/staff loyalty, the answer is a pretty consistent NO. Spif programs are like retail loss leaders. They're designed to get attention, not create long-term supplier value and advocacy. Suppliers, if they want sales person advocacy on their side, have to determine what it takes to merit that advocacy. In other words, they have to partner with sales people in designing the program in the first place.
Dig Deeper on Customer loyalty and retention
Related Q&A from Michael Lowenstein, VP and Senior Consultant, Customer Loyalty Management, Harris Interactive
Find out if luxury retail stores should offer loyalty programs for their customers in this tip. Learn how some luxury retail brands build loyal ...continue reading
Get an experts take on raising the hurdle rates of a customer loyalty program and learn more about value-added benefits from Michael Lowenstein.continue reading
Learn a few ways to measure customer loyalty and find out about customer spend or "share of wallet," which expert Michael Lowenstein believes to be ...continue reading
Have a question for an expert?
Please add a title for your question
Get answers from a TechTarget expert on whatever's puzzling you.