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The Sales Incentive Program’s Rewards

Tuesday, April 25, 2006 Leave a comment

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.

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Categories: Incentive Programs

Measure and review your Sales Incentive Program

Tuesday, April 25, 2006 Leave a comment

The methods you adopt for measuring your incentive programs should satisfy two requirements.

Firstly, the program must be legal and permissible under existing regulations of each State, in which the programs are being operated.

Secondly, your method of measurement must be acceptable to the incentive scheme participants, and be seen by them to be reasonable, appropriate and obtainable.

The appropriateness of the terms and conditions is the key element in the whole planning of the program. Even if they are totally within the legal requirements, you will waste a great deal of time and money unless you review your whole package of activities and rewards through the eyes of the participants. The need for participant co-operation and enthusiasm must also include your desire to award the prizes in the most appealing form. This includes recognising any tax implications under tax law.

Assigning responsibilities: Your planning will reach a stage where you have identified your objectives, who is going to participate and how you are going to make it all happen. Delegating activities and assigning responsibilities is as important in managing an incentive program as it is in any other management activity. This scheduling is even more important when engaging the services of outside agencies such as Ken MacKenzie Communications, who may be helping with such things as the production of printed material, trade release functions, travel arrangements and purchase of prizes. Even when you have allocated tasks and deadlines, you will need to find sufficient time to brief clearly each member of your team. Your cost estimates are often only as accurate as your briefings to suppliers, and if your financial planning is not sound at the outset, costs will run away from you. The use of outside suppliers will depend on the in-house facilities and whether these internal facilities can meet the standard of creativity and production essential to your program. The quality of the printed material which you release will be the participants' first object of appraisal. It is false economy to use in-house printing or design services that are not equal to those available from printers or promotional agencies.

Regular Review: Once you have chosen your team, assigned responsibilities and time and cost deadlines, you must constantly monitor the program and make adjustments as the need arises. During both your planning period and the reviews after the event, you will need to compare the costs of the incentive program with the benefits to be returned to you. Although incentive schemes based on clearly defined statistical criteria are much easier to plan, you must still be sure that your past event measurements are realistically accurate. You should review all components of your program and note the comments from your planning team's own experiences, the views of any agencies you used during the campaign and, most importantly, your participants.

Categories: Incentive Programs

How to motivate people in an Incentive Program

Saturday, April 15, 2006 Leave a comment

An article on Incentive Programs

There are no rules, which dictate the number of different groups of people who can be included in any one incentive program. Each additional group requires its own special treatment.
 

When the target group has been selected, you must:

  • Keep participation simple
  • Talk to some members of the intended group before finalising your planning and, without specifying your particular plans, seek their views, their objectives, their needs and their likely response.

Too many assumptions should not be made without crossing checking them with the target group.

It’s essential to research the size of the group and this is quite simple if it is an internal program. However, if outside your own organisation, you will need to ensure that you have the most accurate figures possible.

You should not proceed until you have carefully calculated the size of your participating audience.

The options available on how to motivate people are almost limitless, and are as varied as the imagination will allow.

Here’s a list of important criteria that are equally relevant to any group you choose:

Please see the Full article at: http://www.themarketingupdate.com/How_to_motivate_people_-_Incentive_Program.html

Categories: Incentive Programs

The Planning of an Incentive Program

Wednesday, April 5, 2006 Leave a comment

An article about Incentive Programs

It's advisable for you to put your initial thoughts on paper as a broad outline, then fill in the specifics, once you have identified the major components. It is often easier to apply incentives where the results can be measured with reasonable accuracy, or statistically compared to some previous result. To ensure the success of your incentive program, you must place most emphasis on:· 

  • The achievability of the standards or targets you are encouraging participants to achieve.· 
  • The reliability and/or availability of the system or people you use to record the results.
  • If comparing current activities with the results from a previous period, you must be careful to check the earlier figures you use are reliable and directly comparable in concept and detail, and are seen as such by the contenders in your scheme.
  • If you are use existing levels of activity as a starting point and are planning to use incentives to improve results in the future, you must be sure that the participants are given the time and the tools to have a realistic chance of success in meeting the new targets.
  • Please see the Full article at: http://www.themarketingupdate.com/The_planning_of_an_Incentive_Program.html
Categories: Incentive Programs