Are you dangling a carrot to just meet a sales objective or are you addressing a pain point in your distribution and sales channel?<\/p>\n\n\n\n
The proverbial dangling of\na carrot is commonly understood as an effective way to influence human\nbehaviour and motivate someone. Particularly, in a business setting where a\ncompany offers bonuses or rewards for reaching or exceeding goals.<\/p>\n\n\n\n
In a B2B relationship,\nmanufacturers and distributors have applied this old technique to persuade\ntheir customers and channel partners by adding a motivational value to engage\nwith sales-focused teams to move specific products or services.<\/p>\n\n\n\n
Whether that\u2019s offering incentive trips, merchandise rewards or cash, it seems this technique has stood the test of time. However, let me question this old adage and explore the use of this model in business today.<\/p>\n\n\n\n
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To engage your business partners and sales channel and build customer loyalty, it\u2019s not a matter of simply picking a reward for achieving sales, adding a communications plan, and declaring an incentive program open for business.<\/p>\n
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We challenge the validity of a simple approach of the \u2018carrot model\u2019 as the foundation of executing incentives and engagement programs. Each corporation we partner with to design B2B customer loyalty programs is recommended to start with a pain-based approach which leads to a \u2018strategy first, reward second\u2019 design.<\/p>\n
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The carrot model is outdated and even patronising.<\/strong><\/p>\n <\/p>\n Whilst it\u2019s true that a properly selected reward (i.e. based on the psychographics of your business audience) will be attractive and create a desire for people to want to earn it, a sole focus only on a reward won’t change behaviour to achieve the outcomes your B2B loyalty and incentive program is after.<\/p>\n Think of personal taste, desires, interests, and personal circumstances. They differ from person to person. So, it is questionable that any company\u2019s budget would stretch to cater to every difference and entice everyone to focus on the same carrot and act upon it. Let alone the resources that it would take. Imagine being asked to understand what motivates each one of your customers and sales partners.<\/p>\n <\/p>\n The model implies that a reward\u00a0\u2013the carrot<\/em>, will motivate and make someone act towards a goal. However, a reward alone is not what makes people act. The ignition of action lies in both the person and the business that you\u2019re trying to influence.<\/p>\n <\/p>\n<\/div>\n\n\n\n\n<\/div>\n\n\t\t\n\n\n\t\tBreaking Down B2B Loyalty Programs\t\t<\/h5>\n\t\t