Simplicity is the key to rebate success

Over the years, I’ve been on the receiving end and the creation end of rebate programs, and have observed that the keys to a good rebate program are simplicity, communication and relevance.

As a vendor, if you can’t explain your rebate program on one page, it’s too complicated. I’ve seen some programs where there are a dozen measurement criteria, a rebate report with 10-plus tabs in a spreadsheet and – I suspect – the requirement that the planets needed to be aligned before comprehension and relevance comes into play with the partners.

The best programs have no more than two or three “gates” for a partner to achieve. More than this runs the risk of eyes glazing over with your partners. Whatever you base your program on, you need to be able to measure accurately. This sounds quite obvious, but you’d be surprised how many vendors implement programs that they then struggle to measure in a timely manner with accuracy.

Communication of progress to partners is critical. The best programs are able to show in very simple measure where a partner is today, and what they need to achieve. Sophisticated programs will also be able to take into account current backorders that have an expected invoicing date within the rebate period.

Towards the end of a rebate period, the ability to communicate on an “as is” basis is required: Some partners will want a report each morning, reflecting their achievement up to the night before. Depending on the reward value of your program, this can drive some explosive activity.

A rebate program that is not aligned with a partner’s own goals is simply “noise” to a partner. Targeting a partner for 25 percent growth when they are only looking for 10 percent makes a program irrelevant. The most effective programs are built on mutually agreed goals where both the vendor and the partner have plans in place to drive towards common and agreed goals. The rebate program should be the silver lining to achievement, not the be all and end all.

For a good rebate program, keep it simple, relevant and communicate regularly with accurate and up-to-date information that can be interpreted “at a glance”. This will ensure that the rebate program is effective in driving the results that both vendor and partner want to achieve.

Greg Furlong has been involved in the IT channel for more than 25 years in both vendor and partner roles. He has held senior roles at IBM, Lenovo and Network Neighborhood, and channel manager roles at Acer, Lexmark and Toshiba. He established ChannelPace.com in 2012; the world’s first BYO CRM and business networking system for the new and emerging social workplace. Contact him at greg@channelpace.com