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Affinion ABG vs. Membership contest

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Affinion ABG vs. Membership contest

  1. 1. Best Incentive Contest July 28, 2010
  2. 2. WESTERVILLE, OH
  3. 3. Incentive Myths <ul><li>Frontline sales force must be the target audience </li></ul><ul><li>Incentives should be used when there is a decline in performance or to solve a performance problem </li></ul><ul><li>Big ticket prizes bring bigger results </li></ul><ul><li>Elaborately designed contests are more fun </li></ul>
  4. 4. INCENTIVES
  5. 5. The Affinion Approach <ul><li>Sales agents unaware of incentive – aimed at exempt staff of managers and directors </li></ul><ul><li>Designed to capitalize on the momentum from successful performance in previous months </li></ul>
  6. 7. The Affinion Approach <ul><li>Sales agents unaware of incentive – aimed at exempt staff of managers and directors </li></ul><ul><li>Designed to capitalize on the momentum from successful performance in previous months </li></ul><ul><li>No financial reward offered </li></ul><ul><li>Ultra simple concept </li></ul>
  7. 8. <ul><li>ABG </li></ul>Membership VS.
  8. 9. It all started with an email…
  9. 10. <ul><li>Team with the greatest improvement in April retention performance over March wins </li></ul><ul><li>Penalty for below goal QA scores </li></ul><ul><ul><li>0.1 percentage point deduction from the retention improvement for every half of a percentage point department QA is below 90% </li></ul></ul><ul><li>The losing team gets a pie in the face – delivered by a member of the winning team </li></ul>Incentive Guidelines
  10. 11. <ul><li>GOALS </li></ul><ul><li>ABG 34% </li></ul><ul><li>MEMBERSHIP 27% </li></ul>MARCH 2011 ABG 40.0% MEMBERSHIP 27.7%
  11. 13. Incentive Support
  12. 14. <ul><li>GOALS </li></ul><ul><li>ABG 34% </li></ul><ul><li>MEMBERSHIP 27% </li></ul>MARCH 2011 ABG 40.0% MEMBERSHIP 27.7%
  13. 15. March April Variance ABG 40.0% 38.2% -1.8 MEMBERSHIP 27.7% 29.0% +1.3 April Variance Penalty ABG 88.6% -1.4 -0.3 MEMBERSHIP 91.3% ---- ---- Ret. Var QA Penalty Total Variance ABG +1.8 -0.3 -2.1 MEMBERSHIP +1.3 ---- +1.3 FINAL RESULTS QUALITY PENALTY RETENTION
  14. 16. $0.03 per FTE Cost
  15. 17. Generated Revenue $82,692.66 * *REVENUE IS CALCULATED OVER 12 MONTH PERIOD
  16. 18. Return On Investment 5633:1 :
  17. 19. WINNERS Not-So-Much Winners
  18. 20. VISITORS
  19. 23. <ul><li>Fresh incentive approach netted strong results </li></ul><ul><li>Focus on motivating leaders drives desired behaviors at all levels </li></ul><ul><li>Competitive spirit is a strong force </li></ul><ul><li>Variety of incentive types and targets necessary to be effective </li></ul><ul><li>Important to continue to motivate during successful times </li></ul>Conclusions

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