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