01 Apr Why instant rewards work better
The phrase “Cash is king!” has been repeated enough in modern vernacular that it could qualify as a cliché. To many vendors dislike, channel partners continue to opt for cash as their most desired reward.
There is a lot of Emotional Psychology research that supports their concerns, suggesting tangible alternatives create more long term satisfaction in comparison to cash. For example if presented with a simple choice — cash or a tangible reward — without regard for emotion, the practical nature of cash is seen as a “wise” or “responsible,” if less-satisfying, choice, probably due to necessity.
Whilst the research makes logical sense and we certainly agree that there are many motivators beyond cash (especially in the areas of employee rewards), we can’t help but ponder if perhaps “times are a-changing”.
The term “instant gratification” has now become the norm, if not expected. Our food, entertainment, online shopping, and even dating have been engineered to make it incredibly easy for us to obtain whatever we want in increasingly short order. Having our desires quickly met has a flow on effect to how we expect to be rewarded. There are many reasons why sending digital rewards are therefore a great opportunity for vendors.
Millennials have become notorious for disrupting any industry they can get their hands on, and businesses need to keep pace with their needs. For instance; 65% of millennials say they prefer digital rewards versus 45% of boomers. Vendors and/or Distributors need to pivot, or at least, adapt to these growing trends. If partners prefer digital rewards, we must find new ways to engage and reward them.
Our experience over the years, has seen that by rewarding partners instantly contributes to building a strong and meaningful experience with brands. Indeed, when a reward comes at the right time, the channel partner values the interaction far more. We believe that immediacy also can take loyalty to the next level and triggers a memorable relationship with a brand.
An example of this is Veeam Partner Perks. After a successful 12 month in ANZ, the program has recently expanded into four (4) countries across Asia.
By offering generous Virtual cash rewards, Veeam has been able to quickly activate and influence their partner base by allowing their partners quick access to the rewards platform through a Single Sign-on experience via the Veeam Pro Partner Portal. So much so that the stats show Veeam Partner Perks members transact three (3) more than non-members. There is no doubt that a big motivational driver for that engagement success has been the fact that they have been able to instantly put cash rewards into the hands of their channel partners.
“It has been pleasing to see Veeam Partner Perks being widely adopted within its first 12 months in market. The aim has always been to create meaningful partnerships and recognise the hard work of our channel partners, and Veeam Partner Perks creates a foundation to do exactly that.”
Channel Marketing Manager | Australia & New Zealand | Veeam
For vendors like Veeam, removing all the ordering and delivery requirements of physical cards is invaluable. For their partners it means they never have to worry about waiting for a card, losing it or not receiving it in the mail. Instead their focus remains on continuing to engage with Veeam in the areas of Sales, Training and Marketing in return for Virtual cash rewards that they can choose to use on-demand.
Just like a personal bank, cash is accumulated and can be spent anytime either partially or in full –whenever and wherever they wish. The rewards platforms manages the incoming and outgoing transactions like a standard bank account and for partners it is gratifying to in control of their rewards and see them grow.
If you are interested in learning more about Virtual cash rewards and setting up your own rewards store simply reach out to us. Watch our video below to learn more.