A guide to usingincentives and motivationprogrammes to drive sales,marketing and customerrelationshipsHow to plan your inc...
IntroductionReward programmes are a critical part of sales and marketing activity for manyorganisations.Whether you operat...
Getting your planning rightWhen was the last time you sat down and gave a fresh look across all your incentivesand reward ...
Think beyond Christmasand into 2013The run-up from autumn to Christmas is a critical time commercially for organisations.F...
Key action – maximising your investmentSpreading your investment through the year – particularly outsideof Christmas - can...
Rethink how you canmeasure impactWe are all used to the idea of demonstrating return on investment – it is what weneed to ...
Choose the right rewardand incentive: cash v noncashWhile good insight will give you great ideas about what you can do to ...
Creating an environmentfor successThe last area to focus on in increasing the impact of reward is about what you do within...
ConclusionIn 2012 many organisations have been faced with static or shrinking markets andvolatility in customer behaviour ...
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A guide to using Incentives and Motivation to drive sales, marketing and customer relationships

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Reward programmes are a critical part of sales and marketing activity for many
organisations.

Whether you operate in consumer or business markets they remain a valuable way of
incentivising customers, channel partners and sales teams around specific objectives,
which can be targeted and success measured against the original financial investment.
So as Christmas approaches with the urgency of sales targets in the air and the issue
of what can be done to reach or exceed them high on many people’s agenda, we think
this is a good time to step back and think how you can get more from your spend in the
remainder of 2012 while setting the foundations for sales and marketing performance
in 2013.

This white paper looks at five areas where we think most organisations can make an
immediate, positive difference to what they are doing.

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A guide to using Incentives and Motivation to drive sales, marketing and customer relationships

  1. 1. A guide to usingincentives and motivationprogrammes to drive sales,marketing and customerrelationshipsHow to plan your incentive andmotivation programmes so they makea difference from now into 2013
  2. 2. IntroductionReward programmes are a critical part of sales and marketing activity for manyorganisations.Whether you operate in consumer or business markets they remain a valuable way ofincentivising customers, channel partners and sales teams around specific objectives,which can be targeted and success measured against the original financial investment.So as Christmas approaches with the urgency of sales targets in the air and the issueof what can be done to reach or exceed them high on many people’s agenda, we thinkthis is a good time to step back and think how you can get more from your spend in theremainder of 2012 while setting the foundations for sales and marketing performancein 2013.This white paper looks at five areas where we think most organisations can make animmediate, positive difference to what they are doing:• Getting your planning right• Thinking beyond Christmas• Getting a better return from your investment• Choosing the right reward• Managing your reward schemeThese observations are based on our extensive track record in delivering reward andincentive programmes for some of the leading UK brands and our own insight intohow organisations can best respond to the current business environment to stayahead in this area. By taking a step back and making some small changes to what theydo we believe every organisation has the opportunity to improve sales and marketingperformance through incentives and reward.
  3. 3. Getting your planning rightWhen was the last time you sat down and gave a fresh look across all your incentivesand reward activity?That may sound like a luxury coming into one of the busiest trading periods of theyear, but it is part and parcel of good planning necessary to ensure your incentives andreward are targeting the right people with the right things.We’re not talking about a time-consuming formal review but the importance of takingtime out to ask yourself some simple questions which will give insight into what youmay need to think about changing. Key areas to consider are:• Relevance - Is your incentive programme still relevant? Are the objectives and results of the incentive programme still aligned with your business objectives? Do the rewards meet the needs of the people you are targeting?• Innovation – What are the competition doing? What are they doing which may have an impact on your own programmes? Is your activity really differentiating your business or brand?• Targeting - Are you using your budget to target the right people? Step back and look at whether you have the balance right between external sales, such as channel partners and distributors, internal sales audiences like your customer service and sales teams who can influence commercial performance, as well as existing customers. Segment the audience and apply relevant objectives and targets based on the current performance levels.• Management – Be clear about what you’re trying to achieve; increased customer acquisition, increased sales and retention of existing customers, increased business referrals and leads or improved conversion rates – the strategic objective determines the incentive and reward strategy. How successful have past initiatives been and what more can you do to ensure your investment delivers a sales benefit?• Return on investment – Is the balance of reward and commercial outcomes right? What needs to change?Good planning will ensure that existing investment in reward and incentives is tightand focused on delivering the best outcomes as well as identifying new areas forinvestment which can actually make a bigger difference commercially. Key Action - Planning Reviewing your approach to reward in the sales and marketing mix is vital to ensure current schemes are relevant as well as identifying potential change which can positively support commercial targets.
  4. 4. Think beyond Christmasand into 2013The run-up from autumn to Christmas is a critical time commercially for organisations.For many it is a peak trading period which delivers the cash to sustain the businessthrough the thinner periods of the coming year. For others it is the last chance to hittargets which will have a bearing on budgets and investment in the coming financialyear.Whether your reward or incentive scheme is directed at sales and customer servicepeople within your organisation, external distributors and partners, or your customers,the pre-Christmas period is also important as it sets the tone for performance in theyear ahead.Given this context, unsurprisingly, many organisations focus much of their rewardspend around this time, as incentive programmes mature or contributions to sales arerecognised for sales teams and channel partners.While it is certainly important to do something to recognise this effort, focusing all ofyour efforts on Christmas may not maximise the impact of your budget. For a start,as the run up to Christmas is such a pressured time for many, there is a danger thatcommunications and reward can get lost in the mix – particularly for customers andchannel partners who will have a number of organisations vying for their attention.What’s more the Christmas period is commonly followed by January doldrums wheremotivation and interest among sales teams and partners can be lacking. This cancost your organisation money and you can be missing out on opportunities to buildrelationships and set the tone for the next year.We believe a smart approach is to split your reward and incentive planning across theend of year and into January. This means being ready in December to communicateand deliver reward and incentives aligned to activities which can make a differenceto sales people/channel/customers in the squeezed weeks of early 2013. While salesmay be harder to come by, cementing loyalty with existing customers, reactivatingdormant leads or for external partners, getting them engaged with your brand can allbe supported.The element of surprise should set you apart from the competition while investmentin relationship marketing activity will give you a head start in working with customers,channel partners and distributors in the coming year.
  5. 5. Key action – maximising your investmentSpreading your investment through the year – particularly outsideof Christmas - can be a powerful way of differentiating your brandand improving the impact of the money you spend on reward andincentives.Get a fast start to 2013 by delivering an early tactical campaignwhich grabs attention and banishes the January blues.
  6. 6. Rethink how you canmeasure impactWe are all used to the idea of demonstrating return on investment – it is what weneed to do to win support and budget for reward and incentive programmes. But withbudgets under sustained pressure in our organisations and sales squeezed in manysectors, we are all finding we must now compete harder for our share of the pot orrisk losing out. This is why a third area where we should think to make a difference toour organisations by measuring a wider range of outcomes from reward and incentiveprogrammes.Of course delivering new sales is of the utmost importance but reward and incentivesdeliver value in many other ways: by sustaining loyalty to your brand or business,increasing the number of advocates and referrals. A good question to ask yourself is:apart from sales, what are the other things we would like to achieve from customersand partners?Key areas which emerge and may not be measured are typically:• Relationships –measures of the strength of relationships with key customers or channel partners and how productive they are.• Reputation - what people think and say about you. This defines the extent to which your customers or channel partners will recommend your brand over another.• Behaviour – this is what your customers, partners and sales people actually do, such as the extent to which customers or channel partners are willing to attend training seminars or are actively engaged with your incentives and reward programmes.Looking at return on investment in this way should set the tone for review of existingschemes and your planning of new ones. It should extend to implementation, informingkey areas such as how the programme is managed and communicated.By monitoring a range of outcomes that go beyond outright sales figures, you aremore likely to spot trends which show when performance is off track earlier on, whilealso being able to capitalise on opportunities.Reframing success to cover a wider range of outcomes also helps show the depth ofthe contribution you are making to your organisation and build a stronger case forhow investment can be strengthened. Key action – measuring impact Incentives and reward programmes deliver multiple outcomes beyond pure sales. Think about what you want to achieve and how these can be measured to show the depth of impact from money spent.
  7. 7. Choose the right rewardand incentive: cash v noncashWhile good insight will give you great ideas about what you can do to cut through thenoise and attract people to your business, brand or service, the nature of the rewardyou give still plays a critical role in incentive programmes.Of course, in nearly every instance there is a need to express thanks. But to get themost out of the money you invest, reward should be personal, show some link to yourbrand or business as well as helping to strengthen your relationship for the future.Here, non-cash reward plays a critical role. Pre-loaded cards or vouchers which can beredeemed online or on the high street allow you to give something valuable where thereceiver still gets the choice to spend on what they would like. Unlike cash, cards andvouchers can be branded and the fact that the money is ‘ring-fenced’ ensures a doubleimpact when the reward is given and when it is redeemed. This is the same for travel asan incentive which is rapidly growing in popularity.For organisations who want to develop longer term relationships, pre-paid cards canalso be reloaded throughout the year as part of an ongoing incentive programme.They also have benefits in the way they are treated by the tax man.So while the end of year cash incentives or the ‘wine and chocolates’ approach toappreciation may appear easy, it is highly unlikely to achieve the same level of benefitfor your organisation that a well-thought out non-cash reward scheme can deliver. Key action – personalising reward Organisations can achieve greater loyalty, brand awareness and strengthen key relationships by using non-cash reward.
  8. 8. Creating an environmentfor successThe last area to focus on in increasing the impact of reward is about what you do withinyour organisation to create an environment where reward and incentive schemes canfulfil their potential.With budgets tight and sales hard to come by, the starting point is to make it easy forpeople to approve your ideas.In making the case for sales and marketing reward schemes it is critical to be clear thatthe investment is pegged at the right level to deliver sales - as well as other benefitsfor the organisation. Doing this effectively means supporting your case with theright evidence, how you will measure success and what success will look like. It alsomeans giving the decision making process time so there is adequate space for projectplanning ahead of implementation.The second area of importance is around execution. Many incentive and rewardschemes succeed in getting buy-in for a big idea only to fail after the launch. Goodexecution for reward and incentive programmes relies not only on senior sponsorshipto see them through the decision making process, but also support from managers inyour business to keep them on the agenda, as well as ongoing awareness of what youare doing among the people you are targeting.This comes down to ensuring you have effective communication plans in place whichmaintain momentum, interest and awareness of the programme as well as ongoingmonitoring, which will flag up when the scheme is falling short of its targets. Key action – getting support in your organisation Reward schemes can only reach their full potential if they are supported by sound planning, support from managers and a coherent communication programme. The key is to plan early and ensure as much energy is dedicated to post-launch communications as pre-launch activity.
  9. 9. ConclusionIn 2012 many organisations have been faced with static or shrinking markets andvolatility in customer behaviour as money remains tight and people scout for value ineverything they buy.In this climate, coming into Christmas and focusing on the year ahead, incentive andreward has a critical role to play in supporting sales and marketing activities whichenhance loyalty, strengthen relationships and give added value to customers andchannel partners.In order to be successful we need to stay on our feet, think creatively about how wecan make a bigger impact with the budgets we have and what we can change to makeour organisations stand out. Standing still is not an option.About EdenredEdenred is a leading provider of reward and benefits which supports employeeperformance. We design and deliver solutions which make employees’ lives easier.Our products and solutions include:Employee Benefits: Luncheon Vouchers®, Childcare Vouchers®, Cycle to Work, FlexibleBenefits, Employee Savings, Total Reward Statements, MyWorkOffers®Expense Management: Premium Card, Eyecare Vouchers®, Clean Way® VouchersIncentives, Rewards & Motivation: Compliments Select, Compliments® Card,Compliments® Experiences, Incentive Award Card, Capital Bonds®, Single StoreVouchers, Travel Clubs, Webcentiv®Communication Services: A comprehensive range of solutions to help organisationsengage and motivate their staffTo find out more call us on 0843 453 0209 or email sales@edenred.co.uk

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