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SPIFF Rebate Programs

Articles in this category provide information and solutions on organized SPIFF rebate programs that provide benefits to both manufacturers and channel partners.

SPIF Software – How to Get Better Data and Detailed Analytics

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Data doesn’t mean much without analytics, and the type of SPIF software you are using can make or break your channel sales incentive rewards programs. Without detailed analytics, how would you measure ROI to even know if your SPIF is working as designed?

There are a ton of advantages to incentivizing your sales channel partners with SPIFs. However, with so many moving parts, SPIF programs can bring chaos to a channel system if not built out and managed properly. Your goal here is to create an effective SPIF program to motivate partners to aggressively sell your products and services. An effective program also includes a clear and transparent system for doling out varying levels of commissions.

Manual calculations on an Excel spreadsheet is a long, painstaking process that is quickly becoming a thing of the past. Although many still rely on antiquated manual methods for data collecting data, the results lack efficiency and accuracy. Why take months to process data when an automated solution will take mere minutes? It’s pretty much a no brainer, right?

In addition to saving you loads of time, an automated solution will improve accuracy of partner claim payouts, remove invalid or duplicate claims and cut labor costs associated with manual SPIF management. Ideally, you will want to implement a centralized digital platform to actively promote, manage and measure the success of your incentives that channel partners can access 24/7.

Here are some added benefits of implementing SPIFF software:

Simplifies the process

SPIFs are a complicated phenomenon in an already complex channel world. Why add to the confusion? Automating the process is the simplest way to manage multiple sales channel partners with varying incentives. Here’s a riddle for you: How long does it take to find and make a change on a spreadsheet? With SPIF software, you can make changes to quotas, goals and incentives in a fraction of the time.

Decreases errors

The last thing you want to hear from your sales channel partners is, “My commission check is short.” Especially after they kicked it in high gear to reach your established goal. Performing manual calculations on a spread sheet brings a greater chance of discrepancies due to human error. Implementing a SaaS for SPIFs will virtually eliminate commission errors.

Around-the-clock access

A digital tool means that channel sales partners will be able to access up-to-date, real-time data 24/7 from any device in any location. This is beneficial for sales channel members who are often away from the office working in the field.

Boost in efficiency, participation and productivity

Who wants to wait for their hard-earned money? Certainly not your sales channel partners. With a SPIF software program, you will be able to accelerate turnaround time of commission payouts, much to the delight of your partners. As a result, you’ll increase mindshare, fulfillment and future SPIF participation from your partners. And once those SPIF commission checks start rolling in, your sales channel partners will surely step up their game to line their pockets with those rewards.

Streamline SPIF management

Organization leaders can easily manage accruals and pricing programs with a digital SPIF tool. A SaaS program also increases transparency and visibility as each channel partner can access their own dashboard to view data related to their earnings. This way, sales channel partners can chart their own progress in real-time, which builds trust among your channel partners.

Real-time audit trail

SPIF software will give you real-time data to track and report analytics of your channel sales partner performance. The centralized audit trail ensures you know every little detail about partners’ historical transactions. Then you can drill down the data to make well-calculated business decisions.

 

 

 

How to Optimize your Channel Rebate and SPIF Programs

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Best Practices for Creating and Implementing Rebate and SPIF Programs.

Rebate and SPIF programs are powerful incentive tools best used to boost your partners’ sales efforts.  Such sales incentive programs are designed to ultimately increase product revenue by the number of units sold. However, without automated checks and balances in place, managing rebate and SPIF programs can become time-consuming and burdensome to administer.

According to Jan Triplett, Ph.D., the CEO of the Business Success Center, SPIF can be defined as:

  • Sales Performance Incentive Funding Formula
  • Sales Performance Incentive Fund
  • Special Performance Incentive Fund
  • Specific Price Incentive For Final Sale
  • Special Pay Incentives For Fast Sales
  • Sales Persons Incentive For Fun
Fun Facts about SPIF Programs:

SPIF – Sales Performance Incentive Funds – was most likely originally used by Drapers in 1859.

Depending on how much product a company needs to sell or the ROI goal, rebate and SPIF programs can help motivate channel partners’ sales team or improve their performance.  Nevertheless, success of a rebate and SPIF program depends largely on the program’s design and implementation.

Below we have listed a few guidelines for creating and executing a successful rebate and SPIF program.

Define Your Goals

The first and most important step in creating any program is to define your goals.  To set your objectives for a SPIF program first determine the areas in your company that need improvement. Create goals and SPIF programs based on the areas that need improvement.

For example, you can create SPIF programs based on the following goals:

  • Increase sales
  • Expand market share
  • Improve customer service
  • Partner enablement

Program Participation

As you are developing your program you need to determine who is going to be participating in your rebate and SPIF program.  Consider your partners’ situation and decide if program participation is beneficial or lucrative for them. Therefore, conducting a survey can be very beneficial in finding out the type of incentive and payoff system your channel partners find attractive.

Communication

When launching a SPIF program it’s paramount that you clearly communicate your program rules and performance criteria.  In addition, you need to verify which partners are eligible to participate in the program.  Your program should also point out which products are eligible.  At the same time, the rules need to explain the duration of the program and how quickly channel partners will get reimbursed.  The more details you communicate in your SPIF program, the less room you’ll leave for misinterpretation.

Campaign Marketing Strategy

Like any incentive program, rebate and SPIF programs need to be accompanied by a comprehensive marketing strategy.  Work hand-in-hand with your marketing team to provide adequate marketing materials before and during the rebate and SPIF campaign.

Real-Time Reporting

The platform and reporting software you use play an important part in the success of your SPIF program.  However, many companies waste their resources by employing manual processing to track the progress of their partner sales.  As a result, partners become frustrated due to long payment cycles and a lack of visibility for channel rebate and SPIF information.  Provide your channel partners with a SPIF management software that not only allows real-time reporting but also delivers status and validation to those participating in your program.

Tool for Managing your Rebate and SPIF Programs

CMR’s Rebate and SPIF Management module ensures your SPIF programs run like a well-oiled machine.

Our Rebate and SPIF Management module removes the burden of manual organization and maintenance.  The module calculates valuable rebate and SPIF data specific to the partner or representative in real-time. The entire process uses an online interface that calculates rebates and SPIFs automatically from POS data.  Subsequently, your partners will have access to a dashboard that gives them a summary of their earned rebates to date, transaction-level reporting, and progress towards increased earnings. This information is useful for tracking milestones and sales goals and creates an open flow of communication between you and your channel partners.

In addition to your partners having secure access to their sales data, your program administrators will have a full overview of rebate and SPIF data for every participating partner. Therefore, with all the information in one easily accessible place, the Rebate and SPIF Management module provides real-time channel visibility keeping you informed of partner/rep performance, incentive funds, and payments.

Improve Accuracy of Partner Claim Payout

Streamline the approval, claim, validation, authorization, and payment process of your rebate and SPIF programs

Learn More about CMR's Rebate and SPIF Management Module

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