Spiff Management Explained

Sales spiffs are payments made to dealer sales reps rewarding them for selling your products. Spiffs are transactional incentives associated to a line from a manufacturer or wholesaler invoice. The rep, or payee, is an individual with whom you do not have a direct financial relationship thus requiring an external payment as opposed to a customer bill credit. Spiffs are often combined with other sales incentives including end-customer rebates, designer spec-in rewards, and dealer incentives. Spiffs are a proven sell-through tool but can be painful to manage manually. 

What is Spiff Management Software?

Spiff management software is an integrated set of tools that automates and controls each spiff management process. The central management system allows admins to build and publish spiff programs, and to receive and process spiff requests. A public registration page allows reps to sign-up, accept terms, and submit a W9. Once permitted, the sales reps will request their spiffs using a mobile app or web quick-card. Finally, approved spiffs are batched up and sent for payment, typically via API.

What makes spiff programs unique from other incentive programs is their recurring nature, typically lower amounts, and always higher volume. Therefore, it's essential the spiff manager has a system with maximum automation and the least possible manual intervention. If so, spiff payments can be made quickly, disputes are mitigated, and only valid payments are made. 

How Incentit Automates Spiff Management

1. Program Configuration

A master database of items (models, SKUs) is maintained. Spiff programs are built, typically organized by brand, and qualifying items are posted. Amounts are set which which can be flat or formula-based, and unique identifiers are asked for such as serial number or supplier invoice number. Set-up can be done in minutes or hours and not weeks or months. When the time comes to update the amounts, a simple CSV file import enables mass update. Program managers can also conveniently copy existing programs versus starting from scratch for a renewed program.

2. Sales Rep Registration

A white-labeled registration page is configured and published. The webpage is responsive to any screen type so both mobile and desktop friendly. Registrants identify themselves and enter personal information such as home address, personal email, and mobile phone. They identify their employer (your customer), choose a redemption method, create a password, upload a W9, and accept terms and conditions. 

3. Dealer Reps Submit Claims

Once their registration is accepted and their user account finalized, the reps download the SpiffCapture mobile app or login into a provided web quick-card. They claim a spiff quickly with the minimal amount of data necessary to validate their claim — date, model number or SKU, serial number or supplier invoice number, and possibly quantity. That's it! You do have the option of also asking for a photo of their retail sales invoice if desired.  

4. Automatic Sale Record Matching

Your invoice data is uploaded into the system, either through a CSV file or through an integration. Incentit's auto-validation logic seeks to match the spiff request to your sales data through unique identifiers that include your customer ID and either the model & serial or the SKU & supplier invoice number. Validated spiffs are inserted into a status of waiting for approval and can be bulk approved for payment. Spiffs that cannot be validated are inserted into another status of under review, indicating to the admins these should be looked at. Only matched spiffs can be approved forward and paid but the admin does have the latitude to manually link a spiff to sale record. 

5. Multi-Line Spiffs, Bulk Spiff Upload, & Bonus Spiffs

Spiffs are usually requested one at time just after the retail sale is made. However, the option exists to claim multi-line spiffs where multiple eligible products are sold on the same retail invoice. There is also an option to aggregate over time and upload a file of spiffs over a previous period. Finally, gamification logic allows bonus spiffs to automatically create once certain conditions are met. 

6. Batch Payment & 1099 Support

At a time of your choosing, program admins will batch up and closeout all approved spiffs over a cycle. Payment can then be made. The most common redemption methods are reloadable prepaid card with cash withdrawal privileges and ACH payment. Less common methods are Zelle Disbursements and check payment. Single load prepaid cards are an option because they can be free, but do not not align with recurring payments. At your option, 1099 support is available including e-filing and distribution of individual form 1099s. 

Why Choose Incentit for Spiff Management?

• Purpose-built for channel partner and ally incentives (not a generic CRM bolt-on)

• Centrally manage with other sales incentive programs including end-customer rebates, dealer rebates, and designer spec-in rewards. 

• Spiff Capture Mobile app for iOS and Android (reps love it!)

• Spiff auto-validation logic lowers program cost, scales delivery, shortens the time to payment, and mitigates payment errors.

• Multiple redemption methods available.