| Today's business environment has changed | | | | what the company planned for. (Copyright |
| dramatically over the past 10 years, it can be a | | | | IMA)Employee Incentives - To motivate, retain |
| tough task to make a sale. Just being aggressive | | | | and reward loyal and efficient employeesA small |
| doesn't cut it any longer. Sales skills alone aren't | | | | retail store in Maryland, Target Appliance, used |
| enough to compete when so many new products | | | | travel incentives. "We introduced our first travel |
| and services become everyday commodities. | | | | incentive for sales employees five years ago," |
| Consumers nowadays are being smart. You've | | | | says President Daryl Gamerman, "and since then |
| got to distinctively separate your business from | | | | we've only lost staff due to retirement. I don't |
| the competition and lead each of your prospects | | | | ever have a problem with our sales people not |
| and customers to think, 'I would have to be a | | | | working 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 the | | | | great trip.Customer Loyalty Incentives - To build |
| best bargains and they all seem to want more | | | | customer loyalty and trustThe Frequent Builders |
| than what they paid for. Every industry both | | | | Program at Garco Building Systems offered travel |
| online or offline needs a cutting-edge | | | | awards to individuals. Since launching the program |
| cost-effective powerful marketing tool that | | | | five years ago, Garco has experienced a 15 to |
| appeals to every kind of consumer.Vacation and | | | | 25% growth rate, compared to an industry |
| travel incentives are one of the most powerful | | | | standard of 2-3%. In 2000, the company grew a |
| methods of attracting business, retaining profitable | | | | robust 37%. While it's impossible to measure |
| clientele, increasing profits, enhancing product | | | | precisely 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 travel | | | | helps to build customer loyalty," says |
| incentives in their marketing and promotions have | | | | Loomis.Referral Incentives - To develop contacts |
| seen at least 30% increase in their sales on both | | | | or promote referrals.'Refer three new customers |
| sides of the buy and sell cycle. Companies of all | | | | to 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 or | | | | of so many ways to use incentives to get those |
| direct sales business will benefit from incentive | | | | referrals every company needs.Purchase |
| travel programs.Why use incentives?Here are | | | | Incentives - Increase cash flow and obtain money |
| some compelling reasons why you should consider | | | | upfront.'Pre-pay a one year service agreement, |
| using incentives:·Knowledgeable and attentive | | | | you will get a free 7 days and 6 nights resort |
| employees account for 80% of the reasons | | | | condo accommodation in the destination of your |
| consumers feel satisfied, according to a PNC Bank | | | | choice.' is an example how incentives can be used |
| Corp. survey.·Fewer than one in four | | | | to up sell.Member Perks - Sell new accounts or |
| American workers is working at full potential; half | | | | member 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 more | | | | airfare 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 customers | | | | vacation 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% increase | | | | account with us.'Encourage responsiveness or trial |
| in customer retention can increase lifetime profits | | | | of product or service.'Send back our questionnaire, |
| from a customer by 75%, according to the | | | | we will send you and a companion to Orlando |
| Loyalty Effect by Frederick | | | | near Disney with free hotel and airfare!''We will |
| Reichheld.·'Reward and retention efforts can | | | | give you a free 3 day/2 night vacation to Orlando |
| produce big dollar returns.' That's what the | | | | when you test drive our all new 2002 Honda |
| Incentive Federation found in a 2003 survey | | | | Hybrid.'Improve attendance |
| asking hundreds of businesses using incentive | | | | Create new markets |
| travel promotions 'Does Incentive Travel Improve | | | | Foster teamwork |
| Sales Productivity and By How Much?'What then | | | | Build traffic |
| can we conclude from these survey results?The | | | | Set appointments |
| bottom line is loyal customers and productive | | | | Business gifts |
| employees are the foundation of a successful | | | | Consumer/User promotionsCash vs. Travel |
| business. But to continuously retain and motivate | | | | Incentive?Cash as a motivator is considered an |
| people can be a difficult challenge. Vacation and | | | | unemotional award and widely over used. It |
| travel incentives, a proven motivator, will achieve | | | | seems that all human behavior stems from one |
| this purpose.Do your incentives measure | | | | of the brain's two hemispheres: the left, which |
| up?Today's business environment demands a new | | | | thinks in rational, linear terms; or the right, which |
| breed of incentive programs. Many companies | | | | operates in terms of images, emotions, and |
| have already discovered that standard incentives | | | | feelings. When companies offer money as a |
| of just a few years ago just don't cut it with the | | | | motivator, they are addressing performance |
| customers as well as the workers in our | | | | issues from a rational, left-brain point of view. |
| continuously changing economy. Your choice of | | | | Tangible 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 to | | | | eliciting images. (Copyright IMA)On a survey |
| measure up and get results you are looking | | | | conducted by the Wirthlin Worldwide Research, a |
| for.Hundreds of promotional companies offer | | | | question "How did you spend your last cash |
| incentive programs that are designed to evoke an | | | | reward?" was asked. |
| emotional response and motivate people to take | | | | The following results were gathered:29% - Bills |
| a positive action. It's obvious from industry | | | | 18% - Don't remember |
| surveys of companies using incentives that travel | | | | 15% - Never received cash |
| is the most widely appealing incentive where | | | | 11% - Gifts for family |
| everyone wins. Your sales people will close more | | | | 11% - Household items |
| sales, your clients will enjoy an exciting vacation | | | | 11% - SavingsThough its value is concrete and |
| experience and your business will increase its | | | | while it could be used to purchase a lifestyle |
| profits.Why use travel incentives?-Travel is | | | | award, most likely cash will be charged against a |
| considered to be the most effective | | | | pile of bills or deposited into a leaky checking |
| reward.According to the result of an email survey | | | | account where it soon ceases to exist. And with |
| conducted by CMI, 58% say travel is more | | | | the demise of the cash award goes the memory |
| effective than cash or merchandise. Survey | | | | of its origin leaving no trace of psychological |
| respondents consider travel to be the most | | | | branding.Joe Devlin of Mitsubishi Fusco Truck of |
| effective reward. (Incentive Travel Fact | | | | America Inc. quoted, "Cash goes straight into |
| Book)"Cash bonuses are necessary but travel is a | | | | people's pockets, and they need it to supplement |
| higher perceived reward," says Verizon's | | | | their salary, but our trips give us the competitive |
| Porterfield.Additionally, in a recent survey of | | | | edge. They're a big part of how we motivate the |
| American workers, 85% said they were | | | | salesperson at the dealership that has the |
| motivated by vacation travel incentives.-Nothing | | | | opportunity 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 conducted | | | | Tire & Rubber Company sponsored an incentive |
| by the Incentive Federation, survey respondents | | | | campaign to improve sales of tires. Two groups |
| believe that travel and merchandise awards are | | | | were formed; one was offered monetary |
| remembered longer than cash payments. | | | | rewards, and the other an equivalently priced |
| Specifically, 69% strongly agree with this | | | | selection 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. But | | | | rewards outperformed the monetary rewards |
| the recognition that comes from our travel | | | | group by nearly 50%. This was the first |
| incentives lives on."-Travel has a universal appeal | | | | documented evidence that cash, as a motivator, |
| and high-perceived value.USA Today, on their | | | | is 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 vacation | | | | travel will distinguish a company's campaign from |
| travel is something that some or most people | | | | cash compensation packages. The programs do |
| would not be able to get for themselves.-Travel is | | | | not become an expected part of an employee's |
| desirable.Another question asked on the Wirthlin | | | | income. Surveys by Incentive Federation show |
| Worldwide Research 2003 survey was "Suppose | | | | that organizations use incentive travel because it |
| your employer wanted to reward your work | | | | creates lasting memories for the participants and |
| performance. What would you find most | | | | generates positive buzz throughout the |
| rewarding?"88% - indicated a trip they plan and | | | | organization. Because they do not have an impact |
| take with a companion to the destination of their | | | | on compensation, it's easier to use incentives as |
| choice5% - indicated a trip planned for them and | | | | needed 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 their | | | | in gear. (Copyright IPC)Join hundreds of other |
| co-workers-Travel has a promotion value.A more | | | | companies like: |
| exciting and memorable program can be built with | | | | Car Dealers |
| travel than you can with cash.Do travel incentives | | | | Banks |
| work?According to the 2003 Incentive Travel | | | | Manufacturers |
| Facts survey, travel incentives increase sales by | | | | Real Estate Brokers |
| an average of 15%. In addition, half of the | | | | Service Providers |
| respondents reported that travel incentives meet | | | | Credit Card Companies |
| 75% - 99% of their objectives. (Incentive | | | | Public Speakers |
| Magazine)Where can I use travel incentives | | | | Furniture Retailers |
| for?Sales Incentives - To increase salesIn a May | | | | Mortgage Lenders |
| 1998 Promo Magazine special report, it was noted | | | | Sports Organization |
| that LifeUSA attracted new agents and sent sales | | | | Insurance Companies |
| soaring by abandoning its annual cash incentive | | | | Jewelry Stores |
| program for a more inclusive campaign that gave | | | | Non-profit organizations (fundraising, etc.)And |
| out merchandise and travel. By the program's | | | | more...that have discovered the positive impact of |
| conclusion, policy enrollments exceeded LifeUSA's | | | | incentive travel in their business.Lynne Gabriel is |
| initial goal by 700%. There were 10,000 | | | | the owner of and has been in business since 2001. |
| certificates issued and were more than twice | | | | Visit for more. |