South Africa, Feb. 26 -- But they are the superficial signs of innovation - not the real game-changer. The most important innovation in channel incentives over the last decade has been something less obvious, but far more powerful: the loyalty that technology can nurture.

Channel incentives are often seen through a limited and short-term lens, designed, for example, to increase sales. That is the basic principle of an incentive: do (more of) this, get (more of) that. Sell more, get rewarded more. But there is an inherent flaw in this approach: competitor brands can simply outbid you with better incentives.

The real potential of incentives is something much more valuable and durable: to build loyalty.

Channel partners usually sell many ...