When it comes to your channel sales incentive programs, ROI is everything. Rewards are nice. But at the end of the day, business growth is the measure of a successful incentive program. We’re excited to present the ROI Calculator.

If you need help figuring out what numbers to use, instructions are below or feel free to contact an ROI-expert for help.

The ROI Calculator

Steps for Using Incentive Solutions’ ROI Calculator

  1. Determine your goals for your incentive program.
    First of all, we need to figure out why we are using an incentive program and what we need that program to accomplish. Are you looking to create customer loyalty across your distribution channel? Are you looking to incentivize dealers or contractors to increase their order size? Figuring that out will help us identify your target audience.
  2. Enter sales volume data (or project that date) for your target audience.
    Your target audience is the customers (or internal sales team) whose behavior your incentive program is going to influence. Identifying your target audience will provide you with your Average Customer Sales Volume and your Number of Target Customers. For some companies, it might be necessary to project that data. I’d encourage you to speak with one of our ROI-certified experts if you need help projecting that data. We work with hundreds of clients across a wide range of industries and should be able to help you estimate those figures. Additionally, if you need help identifying your target audience or compiling more complete B2B marketing data, ask about the Open Enrollment or Performance Tracking incentive software modules.
  3. Enter average gross margin %.
    Your average gross margin % is Revenue minus Cost, divided by Revenue, multiplied by 100. Most businesses will already have this data somewhere on file.
  4. Enter your sales increase estimate %.
    This percentage will either be an estimate or a goal. To figure out what kind of business growth your business can achieve through an incentive program, speak with a representative or explore our case studies.
  5. Finally, enter the % of sales that you want to allocate for payout for the participants of your incentive program.
    At this point, this number is most likely an estimate. Basically, it is how many dollars’ worth of points (or travel incentive costs) do you want to assign your participants per dollar sold. This percentage will fluctuate depending on how broad your target audience is and how closely they work with your business. Incentive Solutions also has options to apply different percentages to different members of your organization or different areas of your distribution channel.
  6. See your potential incentive program ROI.
    Based on the above data, the ROI Calculator will calculate your ROI as well as the average monthly benefit your incentive program will generate for your company. Again, this is projected business growth. If you aren’t arriving with an ROI that exceeds your expectations, play around with the numbers to out what metrics you need to hit to make an incentive program a worthwhile investment.

Additionally, there are strategies we can explore to increase your business growth and improve your distribution channel sales. The ROI calculator is intended to give you a ballpark estimate, but we encourage you to discuss possibilities for your company’s incentive program with an ROI-certified expert.