Home > Incentive Programs > The Sales Incentive Program’s Rewards

The Sales Incentive Program’s Rewards

Tuesday, April 25, 2006 Leave a comment Go to comments

The rewards, which you plan to make available to the participants in your incentive program, should be considered under two "value" criteria:-

  • The cost to you in dollars
  • The appeal and satisfaction of your rewards, in the eyes of the potential winners.

The dollar cost: The cost of your sales incentive rewards will be an important component of your planning in the early stages, and must be included alongside the estimates you obtain for printing, trade launches, agency costs and fees, and other items of expenditure. Obviously, the cost in dollars for rewards will be different for all programs, as they will depend upon how many prizes and how many people need to be rewarded, and to what value. Each program will be different. The important need is to include the reward costs in your total budget.  The advantage of a larger number of prizes, even if they be individually of a lower value, is that there is a greater degree of all round enthusiasm and participation, when the potential participants see that the odds are more in their favour. If there are sales incentive rewards available for all sections of a unit, or distribution channel, there is total involvement and the degree of co-operation and activity is often greater. However, the competitive spirit must not be destroyed by allowing everyone to win a prize. Appeal and Satisfaction to Participants: The success or failure of an entire campaign will hinge on the potential participants' reaction to "What's in it for them?" The appropriateness and excitement offered by the type of prizes can often lift the real value of these prizes beyond their actual dollar cost. A few basic elements must be considered, in addition to the main need to consider the prizes through the eyes of the winner and not those of the promoters of the sales incentive scheme.

  • The prizes should be easy to distribute.
  • Where a wide choice is offered, you may need to prepare an attractive brochure or catalogue.
  • You must not use your own surplus or discarded stock as a low cost solution to such an important part of the program.
  • You should make sure that the timing is fair and sensible to the winners.

  • If travel is included in your prizes, you should plan it on a basis of total individual choice of time or, if arranging a group activity, plan the trip to suit the commercial pressures of the recipients. Winners should not be forced to join a group tour at a time that is very busy for them, or when they are shorthanded through staff holidays or other causes.
  • The greatest value is often attached to prizes that can be shared by both the winner and his or her family or friends. Travel prizes that include the option for two, or a family, to enjoy a holiday together have much higher value than single travel. 

Summary: You should:-

  • Make it easy for the prizes to be collected or utilised.
  • Explain clearly any conditions that may apply.
  • Follow up with your prize suppliers to ensure that they do what they have promised, both to content and time.
  • Make your communications with winners timely and friendly.
  • Treat them as special people.

No incentive program can be considered complete until the prize winners have received their prizes in the form and within the time stated and with the satisfaction promised when you first sought their participation.

Advertisements
Categories: Incentive Programs
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: