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Business-to-BusinessIncentive Marketing – By Small Business Resource

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What’s in this presentation

What’s required in setting up an incentive program

Pit falls to look out for

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Why use incentives ?

External programs:Improve sales

Increase market share

Reduce turnover

Increase loyalty

Internal programs:Raise productivity

Lift morale

Foster teamwork

Improve work habits

Ensure safety

Decrease absenteeism

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Incentive target groups

Incentives can influence people at every level of your organization and distribution channel:

dealers, distributors, resellerssalespeopleclerical workersplant workersmiddle managersadministrative staff

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8 Steps to planning yourincentive program

1. Define your objectives2. Plot your strategy3. Build your budget4. Devise a measurement system 5. Choose the awards6. Spread the word7. Run the program8. Evaluate your results

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1. Define your objectivesPreliminary research:

Analyze strengths & weaknesses of yourself and competitorsLook at your competitorsWhat are critical issues facing my industryDefine target groupDefine your products or services and determine which ones will be includedSet fair objectives

Keep it simple, attainable and measurableWell-timed

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2. Plot Your Strategy

Rules that are simple

Evaluation system that clearly measures desired objectives

Quotas that challenge top and average achievers

Awards that speak directly to the audience

Length of qualification period

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3a. Build Your Budget

Open-ended budgets :there is no limit to the number of points or awards participants can earn

Closed-ended budget :budgets are fixed and there is a guaranteed number of winners!

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3b. Budget AllocationCosts:

Awards 60%Communication/Promotion 30%Administration 10%Training/Research

Partner funding (maybe up to 20%)• Awards• Communication

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4. Devise a Measurement System

Sales measurements:Sales

Market share

Units purchased

Percentage of achieved goal

Number of call/contacts

Number of new clients

Profits from sales

Non-sales measurements:Decrease absenteeism

Team spirit

Integrity

Leadership

Documented paperwork

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5. Choose the Awards

You are not shopping for yourself !

Look at:Demographics & psychographics

Lifestyles

What would get them really excited?

What other incentives have they participated in?

Examples:Travel, merchandise, cash, events, financial aid for undertaking marketing activities.

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6. Spread the WordDevelop a slogan & program logo

keep it clear and simple, mirror of your objectives, a bit of humor

Pre-announcement teaser:something really special is coming your way

Announcement piece including enrollment card:outline program objective, rules, structure, measurement system, promote awards

Kickoff:special launch I.e. during a lunch,sales meeting, etc.

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6. Spread the Word

Mailers/statements :update individuals’ progress towards their goals

newsletters

Research & evaluation reports :surveys, telemarketing, focus groups

Congratulatory/qualification :communicate final results

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7. Run the ProgramThe basics:

Enrollment servicesParticipant databasePromotional mailingsAward trackingPerformance statementsManagement reportsEarning/tax reportingPost-program evaluation

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8. Evaluate Your Results

Pre-plan that tracking of results is possible within your existing IT/Accountancy system while setting up your objectives and program structure

Two key questions:Were the objectives met ?

Did the program and awards meet the expectations and desires of the participants ?

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Pit falls to avoid

Most often seen blunders:Lack of pre-researchAllocation of budget is wrongInsufficient communication/promotionAwards not exciting enough or too vagueInsufficient staff backupNo database maintenanceRules are too complicatedUnreachable targetsNot enough support from managementNo long-term planning

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