Increase Sales With Travel Incentives

Today's business environment has changedwhat the company planned for. (Copyright
dramatically over the past 10 years, it can be aIMA)Employee Incentives - To motivate, retain
tough task to make a sale. Just being aggressiveand reward loyal and efficient employeesA small
doesn't cut it any longer. Sales skills alone aren'tretail store in Maryland, Target Appliance, used
enough to compete when so many new productstravel incentives. "We introduced our first travel
and services become everyday commodities.incentive for sales employees five years ago,"
Consumers nowadays are being smart. You'vesays President Daryl Gamerman, "and since then
got to distinctively separate your business fromwe've only lost staff due to retirement. I don't
the competition and lead each of your prospectsever have a problem with our sales people not
and customers to think, 'I would have to be aworking hard or volunteering for extra work,
complete idiot to do business with anyone else...because they know it will help qualify them for a
regardless of the price.' They are shopping for thegreat trip.Customer Loyalty Incentives - To build
best bargains and they all seem to want morecustomer loyalty and trustThe Frequent Builders
than what they paid for. Every industry bothProgram at Garco Building Systems offered travel
online or offline needs a cutting-edgeawards to individuals. Since launching the program
cost-effective powerful marketing tool thatfive years ago, Garco has experienced a 15 to
appeals to every kind of consumer.Vacation and25% growth rate, compared to an industry
travel incentives are one of the most powerfulstandard of 2-3%. In 2000, the company grew a
methods of attracting business, retaining profitablerobust 37%. While it's impossible to measure
clientele, increasing profits, enhancing productprecisely the role that the Frequent Builders
awareness, improving employee productivity.Program played, "there is no doubt in mind that it
Businesses that have used vacation travelhelps to build customer loyalty," says
incentives in their marketing and promotions haveLoomis.Referral Incentives - To develop contacts
seen at least 30% increase in their sales on bothor promote referrals.'Refer three new customers
sides of the buy and sell cycle. Companies of allto our Tanning Salon and we will give you a free
sizes and virtually any type of retail, wholesale,cruise to the Bahamas or Mexico.' is one example
manufacturing, internet, service, distributor orof so many ways to use incentives to get those
direct sales business will benefit from incentivereferrals every company needs.Purchase
travel programs.Why use incentives?Here areIncentives - Increase cash flow and obtain money
some compelling reasons why you should considerupfront.'Pre-pay a one year service agreement,
using incentives:·Knowledgeable and attentiveyou will get a free 7 days and 6 nights resort
employees account for 80% of the reasonscondo accommodation in the destination of your
consumers feel satisfied, according to a PNC Bankchoice.' is an example how incentives can be used
Corp. survey.·Fewer than one in fourto up sell.Member Perks - Sell new accounts or
American workers is working at full potential; halfmember ships.'Join our golf club now and we will
of all workers do no more than directly asked,send you and a companion to Las Vegas with
and 75% of employees say they could be moreairfare and hotel for free!'
effective in their jobs, according to the Public'We will send you and a companion to a free
Agenda forum.·70% of unhappy customersvacation for 3 days/2 nights in over 30
abandon vendors because of poor service,destinations when you open a checking or savings
according to the Forum Corp.·A 5% increaseaccount with us.'Encourage responsiveness or trial
in customer retention can increase lifetime profitsof product or service.'Send back our questionnaire,
from a customer by 75%, according to thewe will send you and a companion to Orlando
Loyalty Effect by Fredericknear Disney with free hotel and airfare!''We will
Reichheld.·'Reward and retention efforts cangive you a free 3 day/2 night vacation to Orlando
produce big dollar returns.' That's what thewhen you test drive our all new 2002 Honda
Incentive Federation found in a 2003 surveyHybrid.'Improve attendance
asking hundreds of businesses using incentiveCreate new markets
travel promotions 'Does Incentive Travel ImproveFoster teamwork
Sales Productivity and By How Much?'What thenBuild traffic
can we conclude from these survey results?TheSet appointments
bottom line is loyal customers and productiveBusiness gifts
employees are the foundation of a successfulConsumer/User promotionsCash vs. Travel
business. But to continuously retain and motivateIncentive?Cash as a motivator is considered an
people can be a difficult challenge. Vacation andunemotional award and widely over used. It
travel incentives, a proven motivator, will achieveseems that all human behavior stems from one
this purpose.Do your incentives measureof the brain's two hemispheres: the left, which
up?Today's business environment demands a newthinks in rational, linear terms; or the right, which
breed of incentive programs. Many companiesoperates in terms of images, emotions, and
have already discovered that standard incentivesfeelings. When companies offer money as a
of just a few years ago just don't cut it with themotivator, they are addressing performance
customers as well as the workers in ourissues from a rational, left-brain point of view.
continuously changing economy. Your choice ofTangible rewards, however, are often more
incentives have to widely appeal to your clients'motivating because they appeal to the right brain
and employees' wants or desires in order toeliciting images. (Copyright IMA)On a survey
measure up and get results you are lookingconducted by the Wirthlin Worldwide Research, a
for.Hundreds of promotional companies offerquestion "How did you spend your last cash
incentive programs that are designed to evoke anreward?" was asked.
emotional response and motivate people to takeThe following results were gathered:29% - Bills
a positive action. It's obvious from industry18% - Don't remember
surveys of companies using incentives that travel15% - Never received cash
is the most widely appealing incentive where11% - Gifts for family
everyone wins. Your sales people will close more11% - Household items
sales, your clients will enjoy an exciting vacation11% - SavingsThough its value is concrete and
experience and your business will increase itswhile it could be used to purchase a lifestyle
profits.Why use travel incentives?-Travel isaward, most likely cash will be charged against a
considered to be the most effectivepile of bills or deposited into a leaky checking
reward.According to the result of an email surveyaccount where it soon ceases to exist. And with
conducted by CMI, 58% say travel is morethe demise of the cash award goes the memory
effective than cash or merchandise. Surveyof its origin leaving no trace of psychological
respondents consider travel to be the mostbranding.Joe Devlin of Mitsubishi Fusco Truck of
effective reward. (Incentive Travel FactAmerica Inc. quoted, "Cash goes straight into
Book)"Cash bonuses are necessary but travel is apeople's pockets, and they need it to supplement
higher perceived reward," says Verizon'stheir salary, but our trips give us the competitive
Porterfield.Additionally, in a recent survey ofedge. They're a big part of how we motivate the
American workers, 85% said they weresalesperson at the dealership that has the
motivated by vacation travel incentives.-Nothingopportunity to sell more than one product."
beats travel for long-term results.In a 2003(Incentive Travel Fact Book)In 1994, Goodyear
Incentive Survey of Buying Practices conductedTire & Rubber Company sponsored an incentive
by the Incentive Federation, survey respondentscampaign to improve sales of tires. Two groups
believe that travel and merchandise awards arewere formed; one was offered monetary
remembered longer than cash payments.rewards, and the other an equivalently priced
Specifically, 69% strongly agree with thisselection of merchandise and travel - related
statement. (Copyright IPC)Porterfield added,rewards. The group receiving lifestyle and travel
"When people spend their money, it's gone. Butrewards outperformed the monetary rewards
the recognition that comes from our travelgroup by nearly 50%. This was the first
incentives lives on."-Travel has a universal appealdocumented evidence that cash, as a motivator,
and high-perceived value.USA Today, on theiris not as effective as travel or merchandise.
recent survey, stated that "93% preferred travel(Copyright IMA)Using non-cash incentives such as
over other incentives." This is because vacationtravel will distinguish a company's campaign from
travel is something that some or most peoplecash compensation packages. The programs do
would not be able to get for themselves.-Travel isnot become an expected part of an employee's
desirable.Another question asked on the Wirthlinincome. Surveys by Incentive Federation show
Worldwide Research 2003 survey was "Supposethat organizations use incentive travel because it
your employer wanted to reward your workcreates lasting memories for the participants and
performance. What would you find mostgenerates positive buzz throughout the
rewarding?"88% - indicated a trip they plan andorganization. Because they do not have an impact
take with a companion to the destination of theiron compensation, it's easier to use incentives as
choice5% - indicated a trip planned for them andneeded without creating the impression that
a companion of choice with their co-workers5% -people are getting pay cuts when no program is
indicated a trip planned just for them and theirin gear. (Copyright IPC)Join hundreds of other
co-workers-Travel has a promotion value.A morecompanies like:
exciting and memorable program can be built withCar Dealers
travel than you can with cash.Do travel incentivesBanks
work?According to the 2003 Incentive TravelManufacturers
Facts survey, travel incentives increase sales byReal Estate Brokers
an average of 15%. In addition, half of theService Providers
respondents reported that travel incentives meetCredit Card Companies
75% - 99% of their objectives. (IncentivePublic Speakers
Magazine)Where can I use travel incentivesFurniture Retailers
for?Sales Incentives - To increase salesIn a MayMortgage Lenders
1998 Promo Magazine special report, it was notedSports Organization
that LifeUSA attracted new agents and sent salesInsurance Companies
soaring by abandoning its annual cash incentiveJewelry Stores
program for a more inclusive campaign that gaveNon-profit organizations (fundraising, etc.)And
out merchandise and travel. By the program'smore...that have discovered the positive impact of
conclusion, policy enrollments exceeded LifeUSA'sincentive travel in their business.Lynne Gabriel is
initial goal by 700%. There were 10,000the owner of and has been in business since 2001.
certificates issued and were more than twiceVisit for more.