Customer Reference Programs: Incentive Strategies That Work - A Community Discussion

In a recent discussion, community members shared their experiences with different incentive models for driving customer reference nominations. Here's what we learned about what works - and what doesn't.

The Case for Substantial Quarterly Incentives

Emily G. shared a successful approach from her previous company that used tiered incentives:

• One entry into a $3K quarterly raffle for each advocate recommendation
• Additional entries into a $5K raffle when nominated advocates participated in advocacy activities
• In contrast, her current company's smaller incentives ($50 gift cards per nomination) have seen less traction, highlighting the potential importance of incentive size.

Integration with CSM Goals: A Strategic Win

Christine Newman found that moving away from spiffs entirely and incorporating advocacy into CSM goals proved highly successful. Her approach included:

• Direct collaboration with the VP of Customer Success
• Setting specific, achievable targets (approximately one nomination per CSM per month)
• Public recognition of CS team contributions
• Breaking down large goals into manageable metrics per CSM

Challenges with Spiff Programs

Nicole Saunders highlighted several challenges with spiff-based programs:

• Generated low-value activity without producing quality advocates
• Tracking difficulties across extended timeframes
• Budget strain from delayed payouts
• Administrative burden in program management

A Targeted Approach to Spiffs

Jeanne Nitschke shared a highly successful targeted spiff campaign:

• Focused specifically on enterprise CSMs
• Rewarded only accepted/approved nominations, not just submissions
• Secured executive alignment from Chief Customer Officer
• Included comprehensive enablement and communication
• Resulted in 430 new reference contacts in just 30 days
• Used as a launch strategy rather than an ongoing program

Key Takeaways

1. One size doesn't fit all - program success depends heavily on company culture and team structure
2. Integration with formal goals can be more effective than monetary incentives alone
3. Clear metrics, executive buy-in, and proper enablement are crucial
4. Consider targeted, time-limited campaigns rather than ongoing spiff programs
5. Celebrate successes and recognize contributors publicly

Whether you're launching a new reference program or revamping an existing one, these insights provide valuable perspectives on structuring incentives effectively.