| Today's business environment has changed | | | | trip.Customer Loyalty Incentives - To build |
| dramatically over the past 10 years, it can | | | | customer loyalty and trustThe Frequent |
| be a tough task to make a sale. Just being | | | | Builders Program at Garco Building Systems |
| aggressive doesn't cut it any longer. Sales | | | | offered travel awards to individuals. Since |
| skills alone aren't enough to compete when so | | | | launching the program five years ago, Garco |
| many new products and services become | | | | has experienced a 15 to 25% growth rate, |
| everyday commodities. Consumers nowadays are | | | | compared to an industry standard of 2-3%. In |
| being smart. You've got to distinctively | | | | 2000, the company grew a robust 37%. While |
| separate your business from the competition | | | | it's impossible to measure precisely the role |
| and lead each of your prospects and customers | | | | that the Frequent Builders Program played, |
| to think, 'I would have to be a complete | | | | "there is no doubt in mind that it helps to |
| idiot to do business with anyone else... | | | | build customer loyalty," says Loomis.Referral |
| regardless of the price.' They are shopping | | | | Incentives - To develop contacts or promote |
| for the best bargains and they all seem to | | | | referrals.'Refer three new customers to our |
| want more than what they paid for. Every | | | | Tanning Salon and we will give you a free |
| industry both online or offline needs a | | | | cruise to the Bahamas or Mexico.' is one |
| cutting-edge cost-effective powerful | | | | example of so many ways to use incentives to |
| marketing tool that appeals to every kind of | | | | get those referrals every company |
| consumer.Vacation and travel incentives are | | | | needs.Purchase Incentives - Increase cash |
| one of the most powerful methods of | | | | flow and obtain money upfront.'Pre-pay a one |
| attracting business, retaining profitable | | | | year service agreement, you will get a free 7 |
| clientele, increasing profits, enhancing | | | | days and 6 nights resort condo accommodation |
| product awareness, improving employee | | | | in the destination of your choice.' is an |
| productivity. Businesses that have used | | | | example how incentives can be used to up |
| vacation travel incentives in their marketing | | | | sell.Member Perks - Sell new accounts or |
| and promotions have seen at least 30% | | | | member ships.'Join our golf club now and we |
| increase in their sales on both sides of the | | | | will send you and a companion to Las Vegas |
| buy and sell cycle. Companies of all sizes | | | | with airfare and hotel for free!' |
| and virtually any type of retail, wholesale, | | | | |
| manufacturing, internet, service, distributor | | | | 'We will send you and a companion to a free |
| or direct sales business will benefit from | | | | vacation for 3 days/2 nights in over 30 |
| incentive travel programs.Why use | | | | destinations when you open a checking or |
| incentives?Here are some compelling reasons | | | | savings account with us.'Encourage |
| why you should consider using | | | | responsiveness or trial of product or |
| incentives:·Knowledgeable and attentive | | | | service.'Send back our questionnaire, we will |
| employees account for 80% of the reasons | | | | send you and a companion to Orlando near |
| consumers feel satisfied, according to a PNC | | | | Disney with free hotel and airfare!''We will |
| Bank Corp. survey.·Fewer than one in four | | | | give you a free 3 day/2 night vacation to |
| American workers is working at full | | | | Orlando when you test drive our all new 2002 |
| potential; half of all workers do no more | | | | Honda Hybrid.'Improve attendance |
| than directly asked, and 75% of employees say | | | | |
| they could be more effective in their jobs, | | | | Create new markets |
| according to the Public Agenda forum.·70% | | | | |
| of unhappy customers abandon vendors because | | | | Foster teamwork |
| of poor service, according to the Forum | | | | |
| Corp.·A 5% increase in customer retention | | | | Build traffic |
| can increase lifetime profits from a customer | | | | |
| by 75%, according to the Loyalty Effect by | | | | Set appointments |
| Frederick Reichheld.·'Reward and retention | | | | |
| efforts can produce big dollar returns.' | | | | Business gifts |
| That's what the Incentive Federation found in | | | | |
| a 2003 survey asking hundreds of businesses | | | | Consumer/User promotionsCash vs. Travel |
| using incentive travel promotions 'Does | | | | Incentive?Cash as a motivator is considered |
| Incentive Travel Improve Sales Productivity | | | | an unemotional award and widely over used. It |
| and By How Much?'What then can we conclude | | | | seems that all human behavior stems from one |
| from these survey results?The bottom line is | | | | of the brain's two hemispheres: the left, |
| loyal customers and productive employees are | | | | which thinks in rational, linear terms; or |
| the foundation of a successful business. But | | | | the right, which operates in terms of images, |
| to continuously retain and motivate people | | | | emotions, and feelings. When companies offer |
| can be a difficult challenge. Vacation and | | | | money as a motivator, they are addressing |
| travel incentives, a proven motivator, will | | | | performance issues from a rational, |
| achieve this purpose.Do your incentives | | | | left-brain point of view. Tangible rewards, |
| measure up?Today's business environment | | | | however, are often more motivating because |
| demands a new breed of incentive programs. | | | | they appeal to the right brain eliciting |
| Many companies have already discovered that | | | | images. (Copyright IMA)On a survey conducted |
| standard incentives of just a few years ago | | | | by the Wirthlin Worldwide Research, a |
| just don't cut it with the customers as well | | | | question "How did you spend your last cash |
| as the workers in our continuously changing | | | | reward?" was asked. |
| economy. Your choice of incentives have to | | | | |
| widely appeal to your clients' and employees' | | | | The following results were gathered:29% - |
| wants or desires in order to measure up and | | | | Bills |
| get results you are looking for.Hundreds of | | | | |
| promotional companies offer incentive | | | | 18% - Don't remember |
| programs that are designed to evoke an | | | | |
| emotional response and motivate people to | | | | 15% - Never received cash |
| take a positive action. It's obvious from | | | | |
| industry surveys of companies using | | | | 11% - Gifts for family |
| incentives that travel is the most widely | | | | |
| appealing incentive where everyone wins. Your | | | | 11% - Household items |
| sales people will close more sales, your | | | | |
| clients will enjoy an exciting vacation | | | | 11% - SavingsThough its value is concrete |
| experience and your business will increase | | | | and while it could be used to purchase a |
| its profits.Why use travel incentives?-Travel | | | | lifestyle award, most likely cash will be |
| is considered to be the most effective | | | | charged against a pile of bills or deposited |
| reward.According to the result of an email | | | | into a leaky checking account where it soon |
| survey conducted by CMI, 58% say travel is | | | | ceases to exist. And with the demise of the |
| more effective than cash or merchandise. | | | | cash award goes the memory of its origin |
| Survey respondents consider travel to be the | | | | leaving no trace of psychological |
| most effective reward. (Incentive Travel Fact | | | | branding.Joe Devlin of Mitsubishi Fusco Truck |
| Book)"Cash bonuses are necessary but travel | | | | of America Inc. quoted, "Cash goes straight |
| is a higher perceived reward," says Verizon's | | | | into people's pockets, and they need it to |
| Porterfield.Additionally, in a recent survey | | | | supplement their salary, but our trips give |
| of American workers, 85% said they were | | | | us the competitive edge. They're a big part |
| motivated by vacation travel | | | | of how we motivate the salesperson at the |
| incentives.-Nothing beats travel for | | | | dealership that has the opportunity to sell |
| long-term results.In a 2003 Incentive Survey | | | | more than one product." (Incentive Travel |
| of Buying Practices conducted by the | | | | Fact Book)In 1994, Goodyear Tire & Rubber |
| Incentive Federation, survey respondents | | | | Company sponsored an incentive campaign to |
| believe that travel and merchandise awards | | | | improve sales of tires. Two groups were |
| are remembered longer than cash payments. | | | | formed; one was offered monetary rewards, and |
| Specifically, 69% strongly agree with this | | | | the other an equivalently priced selection of |
| statement. (Copyright IPC)Porterfield added, | | | | merchandise and travel - related rewards. The |
| "When people spend their money, it's gone. | | | | group receiving lifestyle and travel rewards |
| But the recognition that comes from our | | | | outperformed the monetary rewards group by |
| travel incentives lives on."-Travel has a | | | | nearly 50%. This was the first documented |
| universal appeal and high-perceived value.USA | | | | evidence that cash, as a motivator, is not as |
| Today, on their recent survey, stated that | | | | effective as travel or merchandise. |
| "93% preferred travel over other incentives." | | | | (Copyright IMA)Using non-cash incentives such |
| This is because vacation travel is something | | | | as travel will distinguish a company's |
| that some or most people would not be able to | | | | campaign from cash compensation packages. The |
| get for themselves.-Travel is | | | | programs do not become an expected part of an |
| desirable.Another question asked on the | | | | employee's income. Surveys by Incentive |
| Wirthlin Worldwide Research 2003 survey was | | | | Federation show that organizations use |
| "Suppose your employer wanted to reward your | | | | incentive travel because it creates lasting |
| work performance. What would you find most | | | | memories for the participants and generates |
| rewarding?"88% - indicated a trip they plan | | | | positive buzz throughout the organization. |
| and take with a companion to the destination | | | | Because they do not have an impact on |
| of their choice5% - indicated a trip planned | | | | compensation, it's easier to use incentives |
| for them and a companion of choice with their | | | | as needed without creating the impression |
| co-workers5% - indicated a trip planned just | | | | that people are getting pay cuts when no |
| for them and their co-workers-Travel has a | | | | program is in gear. (Copyright IPC)Join |
| promotion value.A more exciting and memorable | | | | hundreds of other companies like: |
| program can be built with travel than you can | | | | |
| with cash.Do travel incentives work?According | | | | Car Dealers |
| to the 2003 Incentive Travel Facts survey, | | | | |
| travel incentives increase sales by an | | | | Banks |
| average of 15%. In addition, half of the | | | | |
| respondents reported that travel incentives | | | | Manufacturers |
| meet 75% - 99% of their objectives. | | | | |
| (Incentive Magazine)Where can I use travel | | | | Real Estate Brokers |
| incentives for?Sales Incentives - To increase | | | | |
| salesIn a May 1998 Promo Magazine special | | | | Service Providers |
| report, it was noted that LifeUSA attracted | | | | |
| new agents and sent sales soaring by | | | | Credit Card Companies |
| abandoning its annual cash incentive program | | | | |
| for a more inclusive campaign that gave out | | | | Public Speakers |
| merchandise and travel. By the program's | | | | |
| conclusion, policy enrollments exceeded | | | | Furniture Retailers |
| LifeUSA's initial goal by 700%. There were | | | | |
| 10,000 certificates issued and were more than | | | | Mortgage Lenders |
| twice what the company planned for. | | | | |
| (Copyright IMA)Employee Incentives - To | | | | Sports Organization |
| motivate, retain and reward loyal and | | | | |
| efficient employeesA small retail store in | | | | Insurance Companies |
| Maryland, Target Appliance, used travel | | | | |
| incentives. "We introduced our first travel | | | | Jewelry Stores |
| incentive for sales employees five years | | | | |
| ago," says President Daryl Gamerman, "and | | | | Non-profit organizations (fundraising, |
| since then we've only lost staff due to | | | | etc.)And more...that have discovered the |
| retirement. I don't ever have a problem with | | | | positive impact of incentive travel in their |
| our sales people not working hard or | | | | business.Lynne Gabriel is the owner of and |
| volunteering for extra work, because they | | | | has been in business since 2001. Visit for |
| know it will help qualify them for a great | | | | more. |