#1 Must first know where we’ve been. #2 How to best serve clients TRANSFORMATION

This Study Completed with Help of IFI All Star Incentive Marketing Hall Erickson Inc O.C. Tanner A.T. Cross Co. EGR International Maritz MotivAction Rideu Recognition Ryman Marketing Services Samsonite Corp. Top Brand Inc. Tumi Inc. Incentive Marketing Assoc. IRF PPAI RPI SITE

On the Agenda The Study The WHAT The WHY The WHO The HOW MUCH

The Study End Users/Buyers Sample Inventory Target Audience Program Rules: Award Type Used Award Value

Company Size Information

What Award Vehicles are used? THE WHAT What Award Vehicles are used?

THE WHAT Cash Travel Merch Card 1. Employee 37% 27% 48% 67% 2. Channel 17% 33% 56% Both 25% 57% 65% 61% All Respondents 31% 54% DEFINE THE CATEGORIES

Number of Award Types Used A final break out of this showed that 50% used only one type of incentive, 23% used two, 18% used three, and 9% used all four. Interestingly, this was not correlated by firm size (more can be analyzed on this later).

Use Only “this” Award Type A final break out of this showed that 50% used only one type of incentive, 23% used two, 18% used three, and 9% used all four. Interestingly, this was not correlated by firm size (more can be analyzed on this later).

Why are specific Awards selected ? THE WHY Why are specific Awards selected ?

Primary Reasons Ease of use Flexibility Ease of Administration PRE-PAID CARD TRAVEL Ease of use Flexibility Ease of Administration Provide Unique Experiences Build loyalty to Brand Emotional Connection

Primary Reasons Tangible Reminder Trophy Value Employee Preference MERCHANDISE CASH Tangible Reminder Trophy Value Employee Preference

Award Usage by audience THE WHO Award Usage by audience

Usage By Audience

Use By Employee Level The only other striking observation from this data is the relative similarity of usage of the three other types of incentives within employee category. A final conclusion that can be drawn is that executive management receives the lowest percentage of incentives (I guess they don’t include the large bonuses in this category).

Use By Employee Function As would be expected, sales personnel are the largest recipient of incentives. This is particularly striking in the travel category, with sales employees more than three times more likely to receive travel as an award. This shows a large gap in the usage of incentives for “staff” or support functions. Perhaps this is an area for future focus.  

Use By Employee Function As would be expected, sales personnel are the largest recipient of incentives. This is particularly striking in the travel category, with sales employees more than three times more likely to receive travel as an award. This shows a large gap in the usage of incentives for “staff” or support functions. Perhaps this is an area for future focus.  

Use By Employee Function As would be expected, sales personnel are the largest recipient of incentives. This is particularly striking in the travel category, with sales employees more than three times more likely to receive travel as an award. This shows a large gap in the usage of incentives for “staff” or support functions. Perhaps this is an area for future focus.  

Use By Employee Function As would be expected, sales personnel are the largest recipient of incentives. This is particularly striking in the travel category, with sales employees more than three times more likely to receive travel as an award. This shows a large gap in the usage of incentives for “staff” or support functions. Perhaps this is an area for future focus.  

Travel Specific

In the past one to two years, what has happened to your Travel budget? Travel Specific In the past one to two years, what has happened to your Travel budget?

HOW MUCH

Average Award Value By Firm Size $5,946 $2,933 Average: card $100, Merch $150 $2,007

Optimum Award Value By Type 49.5% 46.8% Discussion: Not surprisingly, the travel award dollars are significantly higher than the cash and merchandise. The cash, merchandise, and card percentages are quite similar, with the largest percentage of card awards being in the < $100 amount, followed by the $101 to $500 category.

Most Common Per Award Amt

Award as % of Salary (TippingPoint)

Value Determination Discussion: A large number of respondents base their usage of incentives (the “tipping point”) on personal experience (intuition, experience, observation) while very few base it on actual data and/or experimentation. My expectation is that the “data” are based on ROI, but not on controlled experimentation. I believe that this offers an opportunity to experiment at one or more of these firms within a category (i.e. cash, merchandise) that shows the right level of incentives.  

What Results Are You Experiencing?

Give us “The One Big Thing”