Do Channel Incentive Programs Pay Off?
A long-term study of incentive programs across industries conducted in 2005
by the Forum for People Performance Management and Measurement came to
these conclusions:
- Sales of the featured products nearly doubled during the
incentive program - ROI averaged 10% even after accounting for variations
Incentive programs create their own sales dynamic – sales slow before a program begins and spike at the outset of an incentive period and again just before a program concludes. High performers adapt to incentives faster and better than others, though there is significant lift in the performance of the second rank salespeople.
