How to set up a successful incentive programme?

SWINGGROUPBoosting Results

How to set up a successful incentive

programme?

#SGEvents16

SWINGGROUP Boosting results1. Your company’s challenges

2. Improving performance

3. The value of tangible Incentive Programmes

4. Case: Würth

5. Incentive Programme Design Models

6. Steps towards a successful Incentive Programme

7. Incentive Programme possibilities

8. Key Challenges

9. Motisha Incentive and Reward Software

10. Motisha Client- and Supplierzone

11. References© SwingGroup 2016

YOUR COMPANY’S CHALLENGES

BUILDING A PROFITABLE BUSINESS

Increase turnover or margins?

A great end-of-year gift for your staff?

Increase productivity of your dealers?

Original welcome gift for your new customers?

Better staff performance?

Motivating dealers at the launch of your new product?

Stimulate stock sale?

Increase customer loyalty?

4. Case: Würth

8. Key Challenges

IMPROVING PERFORMANCE

ACHIEVING YOUR COMPANY GOALS FASTER

IMPROVE PERFORMANCE

OUR VISION

“Loyalty is the solid basis to achieve your strategic goals faster and improve your Customer Lifetime Value.”

Reward: to reward

Incentive: to encourage

“Engaged companies outperform their competition.”

SELF-DETERMINATION THEORY - DECI & RYAN

TWO-FACTOR THEORY – HERZBERG 1/3

4 INTRINSIC REWARDS THEORY – KENNETH THOMAS

“A sense of choice”

“A sense of competence”

“A sense of meaningfulness”

“A sense of progress”

THE CANE MODEL OF MOTIVATION

LAW OF EFFECT - THORNDIKE• Reward = enforces behaviour

• Punish = limits behaviour

• Cats in box were encouraged to escape to reach a scrap of fish placed outside.

• Cats learnt that pressing the lever would have favorable consequences and they would adopt this behavior, becoming increasingly quick at pressing the lever.

IMPACT OF UNFAIRNESS

4. Case: Würth

8. Key Challenges

THE VALUE OF TANGIBLE INCENTIVE PROGRAMMES

THE ABILITY TO MEET OBJECTIVES

IMPROVE PERFORMANCE

ENGAGE PARTICIPANTS

LT- outperform ST-PROGRAMMES

4. Case: Würth

8. Key Challenges

CASE WÜRTHTURNOVER INCREASE

WÜRTH

• Sales campaign for professional customers• Target: increase turnover by 15%

• Points for each purchase

• Incentives: gift vouchers (amusement park, weekends, helicopter ride…)

• Ranking: gold – silver – bronze customers

WÜRTH• Integrated communications

• Customised campaign website

• DM, e-mailings, online messages, events

• Temporary promotionso Double points from X tot Y

o Extra gifts (barbecue, Senseo, travel cheques...)

o Proms VIP Night for 50 highest climbers

SwingLoyalty - Login© SwingGroup 2016

SwingLoyalty - Home© SwingGroup 2016

SwingLoyalty - Points© SwingGroup 2016

WÜRTH

• Result• +12% turnover

• Vs. Market average : +5%

• Visit http://www.swinggroup.eu/ENG/Caseoverview.aspx

for other successful cases

4. Case: Würth

8. Key Challenges

INCENTIVE PROGRAMME DESIGN MODELS

BEST DESIGN TO INFLUENCE PERFORMANCE

THE PIBI MODEL

THE INCENTIVE ENGAGEMENT MODEL

4. Case: Würth

8. Key Challenges

STEPS TOWARDS A SUCCESSFUL INCENTIVE

PROGRAMMEEFFECTIVE ROI

KEY SUCCESS FACTORS1. Results-oriented strategy

2. Programme types

3. 1-to-1 concept

4. Activation drives engagement

5. Integrated communications

6. Inspiring incentives

7. Smart technology

1. RESULTS-ORIENTED STRATEGY

• Thorough analysis of o Strategic goal(s) & objectives

o Target group(s)

o Corporate culture

o Previous campaigns, etc.

• Translation intoo Targets based on the organisation’s strategic goals

o Inspiring incentive & reward offer

o Smart communication activation strategy

o Chrystal-clear Incentive Programme rules

2. PROGRAMME TYPES• Points based VS non-points based

o Short term or long term

o One time only or multiple login

• Programme schemes:o Quota-Based Programmes

= most effective

o Piece-Rate Incentive programmes= significantly less effective than quota-based

= significantly more effective than tournament schemes or fixed-rate

o Tournament Programmes

= equal to fixed-rate

o Fixed-Rate Incentives© SwingGroup 2016

3. ONE-TO-ONE CONCEPT

• Unique login identifies participant

• Online loyalty platform adapts automatically to person logging ino texts

o images

o incentives

o programme rules

• Customised recognition approach

4. ACTIVATION DRIVES ENGAGEMENT• Incentive platform accessible online 24/7

• Regular interaction with the participantso Platform messages, DM, e-mailings, SMS...

• Activation through questionnaires, contests, etc.o In line with programme concept (knowledge test,

sweepstakes…)

o Immediate rewards for participation

• Links to the real world through membership card, events, mobile app…

5. INTEGRATED COMMUNICATIONS

• Define communication strategy and communication plan to help achieve the incentive campaign goals

• Create recognisable incentive campaign concept

• In line with company corporate identity

• Deliverables reinforcing the incentive campaign concept

• Online incentive platform as beacon

6. INSPIRING INCENTIVES

• Start with best practice incentive basket

• Constantly updated to meet the specific wishes of the participants/company

• Incentive selections in line with campaign concept

• Be aware of new trends and/or products = this can boost your campaign e.g. new Iphone6

• Fulfill the awards in a timely manner in order to reinforce the motivational message

7. SMART TECHNOLOGY

• Easy to set up, manage, monitor and adjust

• Operates & measures ROI

• Immediate adjustment in function of results and/or opportunities

o Adding or adjusting rules

o Adding or deleting incentives

o Adding or disabling modules

o Adding or deleting participants

• Customised to your required degree of personalisation

• Managed from your campaign cockpit© SwingGroup 2016

4. Case: Würth

8. Key Challenges

INCENTIVE PROGRAMME POSSIBILITIES

TURNKEY OR TAILOR-MADE

INCENTIVE PROGRAMME GRID

INCENTIVES REWARDS

Points-based Earn & BurnLong(er) term

Non Points-based /Instant reward

Short term

Campaign Goal Incentive & Loyalty Recognition & Loyalty

Target Group(s) Customers, Employees, Sales

Incentives Experiences, Events, Gifts, Vouchers, ...

SwingGroup products SwingLoyaltySwingShopSwingGift

SWINGGIFTTHE SMART GIFT VOUCHER

BENELUX OFFER

+ 50 retail vouchers: AS Adventure, Dreamland, Decathlon, FNAC, Galleria Inno, JBC, Planet Parfum...

+ 100 gift experiences: Antwerp Ballooning, Bongo, Cadeaubox, Giftfor2, Plopsaland, SnowWorld…

+ 30 webshops: Bol.com, Fleurop interflora, JewelCard, TheEmotionCompany...

+ 200 digivouchers: Base, Bart Smit, ICI Paris XL, Kinepolis, Kinderen Koning, Magnus, MaasMechelenVillage, Mamzel, Zumba, Zalando...

SwingGift Lite – B2B and B2B2C customers© SwingGroup 2016

SwingGift Plus – B2B customers – Quick© SwingGroup 2016

SwingGift Plus – B2B employees – Q8© SwingGroup 2016

SwingGift Plus – B2B customers – Insites Consulting© SwingGroup 2016

SWINGSHOPREWARDING MILESTONES

THE EASY WAY

GLOBAL OFFER

SHORT-TERM INCENTIVE AND LOYALTY PROGRAMMES:

• Earn rewards by achieving targets and/or milestones

• One-time only secured access to order reward of choice

CUSTOM-MADE:

• 360° communication concept

• One-on-one motivation

• Stats & reporting

SwingShop - Luminus - Login© SwingGroup 2016

SwingShop - Luminus - Home© SwingGroup 2016

SwingShop - Luminus - Orderpage© SwingGroup 2016

SWINGLOYALTYINSPIRING PEOPLE, BOOSTING

RESULTS

GLOBAL OFFER

LONG-TERM INCENTIVE AND LOYALTY PROGRAMMES:

• Earn points by achieving targets

• Redeem points for incentives

CUSTOM-MADE:

• 360° communication concept

• One-on-one motivation

• Stats & reporting

SwingLoyalty Lite - Enfocus - Home© SwingGroup 2016

SwingLoyalty Lite - GM - Home© SwingGroup 2015

SwingLoyalty Plus - Thomas Cook - Points© SwingGroup 2016

SwingLoyalty Plus - Thomas Cook - Gifts© SwingGroup 2016

SwingLoyalty Pro - Pioneer Benelux - Home© SwingGroup 2016

SwingLoyalty Pro - Pioneer Benelux - Gifts© SwingGroup 2016

SwingLoyalty Pro - Pioneer Benelux - Points © SwingGroup 2016

SwingLoyalty Pro - Pioneer Benelux - Incentive trip page© SwingGroup 2016

SwingLoyalty Pro - Citroën Belux - Login© SwingGroup 2016

SwingLoyalty Pro - Citroën Belux - Home© SwingGroup 2016

SwingLoyalty Pro - Citroën Belux - Gifts© SwingGroup 2016

SwingLoyalty Pro - Citroën Belux - Points© SwingGroup 2016

SwingLoyalty Pro - Citroën Belux - Kickoff DM © SwingGroup 2016

SwingLoyalty Pro - Citroën Belux - E-mailing© SwingGroup 2016

4. Case: Würth

8. Key Challenges

KEY CHALLENGESCAMPAIGN CRITICAL MILESTONES

KEY CHALLENGES

1. Data management

2. Data security

3. Customised incentives

4. Buy in

5. Target-driven communication

6. Taxation

7. Budget properly

1. DATA MANAGEMENT• Proper data management

o incentive campaign opportunities

o boosts competitive advantage

• Update marketing data & vice versa

• Adds value across the enterprise when incentive programme practitioners and suppliers are adept at capturing, screening and analyzing information

• Incorporate additional (external) data streams into the incentive campaign decision trees

• Easy data exchange through API’s favorable

2. DATA SECURITY• Protect your company’s incentive campaign

investments and reputation

• Multi-tier admin and management user loginso maintaining lowest “need to know” security authentication

o full admin and management system login audit trail

• Auto-lockout of systems preventing brute force attacks

3. CUSTOMISED INCENTIVES

• Personalised incentives lead to o more motivation

o greater performance gains

• Supplier independency leads too more buying power

o more choice for better impact

o better SLA’s for best stakeholder experience

• Strengthen your company brand and incentive campaign success

4. BUY IN• Get buy in first of your most important stakeholders

before rolling out your incentive programmeo Sales reps

o Channel partners

o Wholesalers

• No buy in = loss of precious time and money

• Optimise your incentive campaign ideas

• These stakeholders automatically turn into your best incentive campaign ambassadors

5. TARGET-DRIVEN COMMUNICATION• Communication is key for success = clear, creative,

continuouso Main challenge: “How to keep the momentum going?”

o Start with: “How to board your participants asap?”

• Measure message impact to target new messages even better

• Communicate results internally to campaign users for maximum involvement

6. TAXATION• Inform your participants upfront on taxation issues

• Use double opt in procedure to ensure crystal-clear understanding of taxation effects

• Either have them pay for it or your company pays for it

• Use easy to extract taxation reports for administrative formalitieso Period

o Participants

o Incentive value

o Delivery date

7. BUDGET PROPERLY• Define overall available incentive budget per target group

• Split up the cost drivers

• Support services are higher at the start of a new incentive campaign

• ROI Incentive costs =

TOTAL NET RETURN - PROGRAMME COSTSPROGRAMME COSTS

Once-only Recurring

Incentive campaign set-up Incentive platform licenseSupport services Communications Incentives =>result related =>no risk

4. Case: Würth

8. Key Challenges

MOTISHA INCENTIVE SOFTWARE

SCALABLE AND FLEXIBLE

Fully integrated incentive & reward management platform

MOTISHA™ STATE-OF-THE-ART TECHNOLOGY PLATFORM

Solid IT framework Strong features

Scalable and flexible platform

Turnkey or tailor-made products

Cross-channel marketing possibilities

Campaign management Analysis & Reporting

Database management Data integration – Data Quality

Reliable & Secure OWASP compliant

Multi-tiered Multilingual

Software as a Service (SaaS) 24/7

MOTISHA™ CONCEPTUAL MODEL

MOTISHA™ CONCEPTUAL MODEL• Customers:• B2C• B2B

• Employees:• Sales• Other

• Sales:• Professional/Agent• Dealer/Channels• Vendor

• Campaign owner• Campaign user• Temporarily campaign user

• Experiences• Events• Gifts• Vouchers• …

4. Case: Würth

8. Key Challenges

MOTISHA

CLIENT- AND SUPPLIERZONE

MASTERING RETURN ON INVESTMENT

CLIENT- AND SUPPLIERZONE

EASY-TO-USE:• KPI Dashboard

• 24/7

• High database connectivity with external platforms

CAMPAIGN COCKPIT

MANAGE CAMPAIGN

MANAGECOMMUNICATIONS

MANAGE RESULTS

MANAGE ORDERS

4. Case: Würth

7. Key Challenges

10. References

REFERENCESSATISFIED CUSTOMERS

MORE INSPIRING

• Proof of concept in Benelux since 2004

• Programmes sold in 6 countries:• BeNeLux – France - Germany – USA

• Solutions rolled out worldwide

• State-of-the-art Motisha™ incentive and reward management platform

AWARD-WINNING SOFTWARE

Best use of technology in a motivation solutionKBC - Vipping

Most improved business performance programmeTechData –td.Boomerang

Most innovative channel incentive campaignTechData –td.Boomerang

REFERENCES• SECTORS: automotive, food, government,

services, industry...

• REGIONS: Benelux, Europe, worldwide

• TYPE OF PROGRAMMES: channel development, customer loyalty, employee rewarding, employee referral, product marketing, sales incentive...

• CUSTOMERS: Alcredis, Atlas Copco, Beckers, BMW, Brunel, BührmannUbbens, Citroën, DeLonghi, Deceuninck, Enfinity, GE, Hansen Transmissions, Insites, Jaguar, KBC, Land Rover, Manpower, Philips, Pioneer, Q8, Quick, Roda, Simac, Solucious, TechData, Thomas Cook, Truvo, Unilever, Unilin, USG People, Vaillant, Vandemoortele, Vitelma, VMW, Würth…

SWINGGROUP’SReferences

Thank you for your attention

SwingGroup BeneluxDampoortstraat 265 b38310 BruggeBelgiumTel. +32 (0)50 50 24 61

sales@swinggroup.be

Linkedin.com/company/swinggroup be.linkedin.com/in/everaertgunther

@swinggroup - @gunar2 - @swinggift #SGEvents16

WWW.SWINGGROUP.EU WWW.MOTISHA.COM

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