Good relationships make the difference
by Rob Stonehewer (edited)
May 3, 1993 - Strategy Magazine


In this highly competitive marketplace, retailers are asking, "Why should I buy from you?" In response, manufacturers see developing and strengthening relationships with retailers as a key strategy to generate a better bottom line and to provide a "point of difference."

Change attitudes
As a result, they are looking to companies that create and manage incentive programs to help change buying attitudes and behaviour with loyalty-building motivation programs. Incentives such as merchandise and travel can directly increase a company's sales and profits and provide a measurable return on investment.

Crucial to the program is not just getting the retailers to buy product, but to build an on-going relationship.

The focus of the program is assisting the retailer in building its business. The idea is not simply to encourage the retailer to buy product, but to help the retailer sell more.

While the merchandise offer is the incentive to change the merchant's behaviour, it is the on-going supplier support and commitment to the retailer's business that is going to help build a mutually rewarding relationship. An extensive choice of awards, when offered with business building opportunities and on-going supplier support, not only motivates retailers to buy once, but helps build long-term, mutually beneficial relationships between retailers and suppliers.

The main factors that should be considered when developing a motivational program are that the awards must be desirable to the participants, that there is enough of a selection to suit everyone's tastes, and the goals set to attain those awards are achievable through a little extra effort.

Strategy is key
The most challenging aspect, though, is the strategy. While incentives are the "carrot" to motivate people, the most critical part is the strategic plan that provides the program's direction.

It is only after analyzing a client's needs that an effective program can be developed with fair performance-related objectives, stimulating, regular and informative communications and the right incentives, the choice of which is limited only by the imagination and budget.

The answer to, "Why should I?" can only be satisfied with a good plan and the right motivators.

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Morale-building bolsters bottom-line
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Employee participation programs on the rise
Energizing employees can be a challenge
How to motivate the troops
New evidence backs non-cash incentives
Brands heighten desire
Good relationships make a difference