The annual Brightspot Outlook and actionable To-Do’s draw fandom that’s just below the level of new-year pop-culture forecasts, fashion trends, and romance predictions for Taylor Swift + Travis Kelce. Our January webinars are top draws. Once again, our bright brainstormers compiled insights from 75 clients, dozens of industries, and 300 programs.
Brightspot aligned with the Incentive Research Foundation think tank, and we put dollars to our passion by sponsoring The IRF 2025 Trends Report. Many predictions align, and the Brightspot future forecast is split between:
- corporate meetings and incentive travel, and
- channel incentives and sales contests (here)
Move the Middle
This strategy has existed for a while, but it’s often more of a talking point than a reality. To grow sales, focus on pulling B performers up to the A level. A tiered rewards structure can challenge reps to level up to more exclusive and valuable rewards and provide a sense of progression and achievement. Studies show that moving the middle 60% by a small amount will accomplish more than the top 20% can.
To-Do: add extra awards for exceeding past performance
Enlist the New
With Generation Z flooding the labor force and high turnover after the Great Resignation and the Great Reshuffling, channel partners and direct sellers have lots of new reps selling new products. An enrollment emphasis with refer-a-friend incentives is a smart strategy to engage new sellers.
To-Do: add enrollment incentive for Q1 and Q2
Enablement Still Crucial
It feels like learning or behavioral incentives make our to-do list every year. But there is a good explanation. In recent years, many reps have companies. At the same time, new products have been launched, and every product has grown more complex. Territories are redrawn. GTM marketing efforts are ever-shifting. And the old adage still applies – sales reps sell what they understand! New training and techniques are required to enable reps to sell increasingly complex products. Add webinars, workshops, certifications, and (our favorite) micro-learning series.
To-Do: invest 10% of all incentives in enablement
Increase Incentives for Inflation
CPI (consumer price index) inflation over the last 4 years was 3%, 4%, 8%, and 5% (for 2024 to 2021), so fixed-dollar incentives are worth less than before.
To-Do: increase offers by 25%
API, SFDC, SSO into CIM UX
Whoa, what? Channels are inherently very fragmented, and so are channel tech tools. The consulting firm Canalys published its , using “islands” to appropriately describe the fragmentation among tech stack software. Brightspot excels on the CIM island (channel incentives management), and we believe incentives should keep a strong audience focus on the channel reps that actually drive sales to customers versus other tools, which, while important, passively support the partner company. Many channel incentives are investing in APIs to talk with different tools, such as SFDC (Salesforce dot com) and SSO (single sign-on) from PRM partner portals to simpler UX (user experience).
To-Do: focus on the target audience & ease their journey
Deep Dive on Data
Ever since “big data” became a term 20 years ago, companies have struggled to turn data into information and information into insights. Channel incentives have a wealth of spectacular information. Dive deep with AI tools and business intelligence (BI) software to extract insights and adjust channel go-to-market efforts. Perhaps a channel partner had a high turnover, and more enablement is needed (see above). Or sales of a particular product line have flattened, so double points make sense for Q1 and Q2. Recent academic research assimilated by IRF shows AI is helping companies understand participant behavior, patterns, and preferences – and then use predictive analytics to adjust performance and rewards.
To-Do: dive deep into data and make tweaks to rules
Visual Reporting
In a business world that overwhelms people with so many KPIs that they are no longer “key” but one of too many, better visual graphics to summarize reporting is a surging trend.
Data visualization tools, such as Power BI, Tableau, Google Charts, and more, are becoming the best way for channel marketers to impress senior execs.
To-Do: quit neglecting communications
Refresh Communications
Another repeated theme, that shows little progress has been made in recent years, is refreshing communications. Add extra effort to the creative collateral and electronic communications. Refresh graphic designs, websites, and email templates. Artificial intelligence can assist with boilerplate copy and a first pass at personalization.
To-Do: quit neglecting communications
Reward Personalization
An earlier to-do suggested focusing on the audience first, which applies to rewards, too, especially in a global setting. In the US, prepaid Visa cards are popular in tech channels, but they disappear on utilitarian purchases of gas, groceries, and fast food. Gift card catalogs (that include (Amazon, Starbucks, Nordstrom, BestBuy, SpaFinder, Pottery Barn, etc.) encourage sales reps to splurge on personalized awards that create a positive association with the sponsor. For global rewards, a virtual or electronic award can be effective for immediate fulfillment and reaching locations with logistical delivery challenges. Avoid attributing your personal preferences to participants in other geographies or generations!
To-Do: think how to personalize
Second-Tier Reach
Many companies take 10-20% of their top sellers on their President Club trip, but they also wish to reward the 2nd tier of top sellers to “move the middle” with extra recognition beyond commissions. An IRF study of What Top Performing Companies Do Differently with Incentives and Rewards found that the programs with higher ROI were widening their “reach” (more people across multiple tiers) instead of focusing on “exclusivity” (the top 10-20%). Instead of B performers feeling discouraged if they cannot achieve the P-Club trip, adding a 2nd-tier recognition, along with a merchandise prize or high-end gift card, can pull those B performers to B+ and eventually to A.
To-Do: widen reach with 2nd-tier prizes
Culture Building Rewards
The IRF 2025 Trends Report also identifies an increasing emphasis on broader reach [add link] to drive culture. While traditional qualification-based incentive programs remain popular, programs are being expanded to reward people who are not on the sales team. Additionally, “friend of sales” rewards are being added, too.
To-Do: re-think rewards
Referral Incentives
With many businesses transitioning to monthly subscriptions and away from big-ticket hardware or software sales, it is more difficult for sales reps to chase smaller-dollar transactions, so referral incentives are rising to reward end customers who refer their neighbor or reward technicians who get stopped in the street by a prospect asking product questions.
To-Do: find new lead gen(eration)
Artificial Intelligence
AI is all the buzz. It’s in every business story. It drove the stock market up 20% in 2024 and 2023. Incentive program managers have started using AI tools, but most say the impact of AI has been insignificant. Initially, it is being used to automate lower-value functions that are highly repetitive or require sifting vast amounts of information. Powerful chatbots are replacing offshore call centers. Brightspot believes AI can be a “helper” for incentive professionals to prompt brainstorm ideas, suggest themes, create first drafts of boilerplate copy, or generate drafts of forms or surveys.
To-Do: dig into ChatGPT; don’t be a dinosaur
Need Help Actioning Your To-Do’s?
Regardless of the industry, corporate incentives are crucial for a company’s success, bringing together individuals from various roles, departments, and locations to strategize and drive the company forward. From selecting the perfect rewards to building seamless websites, our team handles all the logistics. We do the research and groundwork so you can focus on high-level decisions and enjoy the experience. Drop us a line to save time, reduce labor, and streamline your processes!
