The untapped potential of a smarter SPIFF strategy

Manufacturers invest heavily in getting their products into appropriate channels. However, once products reach a dealer network, the brand loses control over the subsequent interactions. Retail sales associates, unfamiliar with the products, must understand their differentiation and recommend them, often for multiple competing brands.

This leads to the widespread use of sales performance incentive funds (SPIFFs) to encourage sales. SPIFFs offer an immediate incentive but have limitations; the real opportunity lies in using the SPIFF to consistently engage dealers and build a strategy that keeps the brand relevant long after the initial announcement.

Merely offering an incentive fails to address the broader experience that dealers need. To make the program effective, the SPIFF should be clearly communicated, easy to register for, and the qualifying products should be highlighted with relevant selling points. Merchants should also consider providing ongoing product education.

This knowledge empowers sales associates to confidently recommend products, positioning them as brand advocates. Post-launch, maintaining interest is crucial. The program should be reinforced at regular intervals, with reminders about opportunities, featured products, key selling points, and updates. Incorporating promotional tactics creates a cohesive dealer engagement strategy.

The broader implication is that manufacturers should aim to make their brand easier for dealers to understand, sell, and remember. This involves ensuring that all marketing efforts complement dealer engagement initiatives, consistently building familiarity and confidence in the brand. By enhancing the SPIFF experience, manufacturers can transform occasional sellers into enthusiastic brand ambassadors, making the brand the preferred choice for recommendations even beyond the incentive period.