- Knowledgeable and attentive employees account for 80% of the reasons consumers feel satisfied, according to a PNC Bank Corp. survey.
- Fewer than one in four American workers is working at full potential; half of all workers do no more than directly asked, and 75% of employees say they could be more effective in their jobs, according to the Public Agenda forum.
- 70% of unhappy customers abandon vendors because of poor service, according to the Forum Corp.
- A 5% increase in customer retention can increase lifetime profits from a customer by 75%, according to the Loyalty Effect by Frederick Reichheld.
How Can I Use Incentives in My Business?
Incentive programs can be used successfully in many ways, here are a few:Sales and Customer Retention
Reduce Advertising Costs Maintaining Price Integrity
Attract New Visitors to Your Store or Web Site Open More Investment Accounts
Business Gifts Promote Closeout Inventories
Close More Sales Referral Incentives
Consumer/User Promotions Sell More Products
Create New Markets Set More Appointments
Encourage Repeat Business Thank You Gifts
Improve Direct Mail Response Upgrade Sales and Purchases
Employee Improvement/Dedication
Acknowledge Milestones and Achievements Increase Employee Loyalty
Create a Successful Sales Team Motivating Sales Staff
Ensure a Safe Workplace Reward Employees
Exceed Sales Goals Reward Extraordinary Service
Foster Teamwork Sales Incentives
Improve Employee Retention Support Perfect Attendance
Others
Fund Raising
Increase Circulation
Trade Show Giveaways
Below are a few specific case examples and ideas of the great benefits and possibilities derived from using Incentives, namely Travel Incentives. Credit - Lynne Gabriel (ArriveNet Editorials)
Sales Incentives - To increase sales
In a May Promo Magazine special report, it was noted that LifeUSA attracted new agents and sent sales soaring by abandoning its annual cash incen-tive program for a more inclusive campaign that gave out merchandise and travel. By the program's conclusion, policy enrollments exceeded LifeUSA's initial goal by 700%. There were 10,000 certificates issued... more than twice what the company planned for. (Copyright IMA)
Employee Incentives - To motivate, retain and reward loyal and efficient employees
A small retail store in Maryland, Target Appliance, used travel incentives.
"We introduced our first travel incentive for sales employees five years ago,"
says President Daryl Gamerman, "and since then we've only lost staff due to retirement. I don't ever have a problem with our sales people not working hard or volunteering for extra work, because they know it will help qualify them for a great trip."
Customer Loyalty Incentives - To build customer loyalty and trust
The Frequent Builders Program at Garco Building Systems offered travel awards to individuals. Since launching the program five years ago, Garco has experienced a 15 to 25% growth rate, compared to an industry standard of 2-3%. The company grew a robust 37%. While it's impossible to measure precisely the role that the Frequent Builders Program played, "there is no doubt in my mind that it helps to build customer loyalty," says Loomis.
Referral Incentives - To develop contacts or promote referrals
'Refer three new customers to our Tanning Salon and we will give you a free cruise to the Bahamas or Mexico.' is one example of so many ways to use incentives to get those referrals every company needs.
Purchase Incentives - Increase cash flow and obtain money upfront
'Pre-pay a one year service agreement, you will get a free 7 days and 6 nights resort condo accommodation in the destination of your choice.' is an example how incentives can be used to up sell.
Member Perks - Sell new accounts or memberships
'Join our golf club now and we will send you and a companion to Las Vegas with airfare and hotel!'
'We will send you and a companion to a free vacation for 3 days/2 nights in over 30 destinations when you open a checking or savings account with us.'
Encourage responsiveness or trial of product or service
'Send back our questionnaire, we will send you and a companion to Orlando near Disney with free hotel and airfare!' 'We will give you a free 3 day/2 night vacation to Orlando when you test drive our all new Honda Hybrid.'
These are just a few types of companies who successfully use Incentives in their businesses:
| Auto Dealerships | Multi-Level Marketers | Banks |
| Non-profit organizations (fundraising, etc.) | Catalog Companies | Office Supply Companies |
| Churches | Public Speakers | Credit Card Companies |
| Radio Stations | Distributors | Real Estate Brokers |
| Furniture Retailers | Retailers | Insurance Companies |
| Service Providers | Jewelry Stores | Sports Organizations |
| Manufacturers | Telemarketers | Mortgage Lenders |
| Wholesalers |
The Travel Incentive Advantage
Vacation and travel incentives are one of the most powerful methods of attracting business, retaining profitable clientele, increasing profits, enhancing product awareness and improving employee productivity.Businesses that have used vacation travel incentives in their marketing and promotions have seen at least 30% increase in their sales on both sides of the buy and sell cycle.
Why Use Travel Incentives?
Travel is considered to be the most effective reward.
According to the result of an email survey conducted by CMI, 58% say travel is more effective than cash or merchandise. Survey respondents consider travel to be the most effective reward. (Incentive Travel Fact Book)
Travel has a universal appeal and high-perceived value
USA Today, on their recent survey, stated that "93% preferred travel over other incentives." This is because vacation travel is something that some or most people would not be able to get for themselves.
Travel is desirable
A question asked on the Wirthlin Worldwide Research Survey was "Suppose your employer wanted to reward your work performance. What would you find most rewarding?"
88% - indicated a trip they plan and take with a companion to the destination of their choice5% - indicated a trip planned for them and a companion of choice with their co-workers
5% - indicated a trip planned just for them and their co-workers
Though its value is concrete and while it could be used to purchase a life-style award, most likely cash will be charged against a pile of bills. And with the demise of the cash award goes the memory of its origin leaving no trace of psychological branding.
Joe Devlin of Mitsubishi Fusco Truck of America Inc. quoted, "Cash goes straight into people's pockets, and they need it to supplement their salary, but our trips give us the competitive edge. They're a big part of how we motivate the salesperson at the dealership that has the opportunity to sell more than one product."
