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Launch a Successful Incentive Program
Steps
- Determine the goal of the incentive. Before you begin to develop an incentive, it’s vital that you know why you’re launching it and what you want it to achieve (increasing sales, driving turnover of a new product, inspiring loyalty, etc.). Clarity at the start is crucial.
- Identify the audience. Once you’re certain of the reasons behind the incentive and you know your goals, the next step is to identify exactly who should take part in the programme (i.e. those people who can help you achieve your goal). These could be staff from your company, from your distributor channel, etc.
- Choose the right incentive structure. Deciding on the most appropriate incentive programme is a very important step. Inclusive, exclusive or product-specific incentives, or incentives that operate on multiple levels are all options available to you.
- Budget properly. Incentives are not expensive luxuries. Properly designed and managed, they should be self-funding strategic tools, the cost of which is covered by increased sales or stronger cost-efficiencies. You should generate return on your investment. The reward accounts for the majority of expenditure but promotion and administration are also crucial, both of which should be covered upfront.
- Get the rewards right. Every employee, whatever their position, wants recognition. Therefore, you must put in place a reward portfolio whose content appeals to a broad spectrum of lifestyles (and thus encourages all employees to participate). Suggestion prizes may include boutique hotel weekends, state-of-the-art electronics, the latest music, films and computer games, and vouchers for the top high-street retailers.
- Get an expert to operate the incentive. Once you’ve put down the foundations of a successful incentive programme, it’s time to seek professional expertise in order to maximise your investment, both financial and physical. The PointBank team is bursting with know-how and entrepreneurial flair and its talents are much sought after.
- Communicate effectively. An incentive programme cannot work without proper communication. Communication must be consistent from beginning to end and the more creative the better. The more excitement that is generated around the incentive, the greater the participation, and the better the results. Don’t forget to communicate the incentive’s success after it has finished.
- Track performance. Being able to track the performance of your incentive and assess its effectiveness, whether during or after the programme, is very important. To be able to access feedback and view return on investment is invaluable, whether in terms of deciding on the next strategic step or improving the operation of an existing incentive.
- Celebrate the winners. Don’t let your incentive flounder by not properly recognising your winners. They have worked very hard, so celebrate their achievement in front of their peers, backed up with a personal note of congratulation. This will make them feel special and will encourage others to improve their own performance.
- Keep up the momentum. Don’t be tempted to switch off once your incentive has come to an end. Be savvy and think how you can use the information you’ve gained from past programmes to improve your next one. The better and more popular you can make your incentives, the stronger the results will be.
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