Brought to you in association with Business-to-Business Incentive Marketing – By Small Business Resource

Brought to you in association with What’s in this presentation What’s required in setting up an incentive program Pit falls to look out for

Brought to you in association with 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

Brought to you in association with Incentive target groups Incentives can influence people at every level of your organization and distribution channel: dealers, distributors, resellers salespeople clerical workers plant workers middle managers administrative staff

Brought to you in association with 8 Steps to planning your incentive program 1. Define your objectives 2. Plot your strategy 3. Build your budget 4. Devise a measurement system 5. Choose the awards 6. Spread the word 7. Run the program 8. Evaluate your results

Brought to you in association with 1.Define your objectives Preliminary research: Analyze strengths & weaknesses of yourself and competitors Look at your competitors What are critical issues facing my industry Define target group Define your products or services and determine which ones will be included Set fair objectives Keep it simple, attainable and measurable Well-timed

Brought to you in association with 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

Brought to you in association with 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!

Brought to you in association with 3b.Budget Allocation Costs: Awards60% Communication/Promotion30% Administration10% Training/Research Partner funding (maybe up to 20%) Awards Communication

Brought to you in association with 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

Brought to you in association with 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.

Brought to you in association with 6.Spread the Word Develop 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.

Brought to you in association with 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

Brought to you in association with 7.Run the Program The basics: Enrollment services Participant database Promotional mailings Award tracking Performance statements Management reports Earning/tax reporting Post-program evaluation

Brought to you in association with 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 ?

Brought to you in association with Pit falls to avoid Most often seen blunders: Lack of pre-research Allocation of budget is wrong Insufficient communication/promotion Awards not exciting enough or too vague Insufficient staff backup No database maintenance Rules are too complicated Unreachable targets Not enough support from management No long-term planning

Brought to you in association with Reasons to join To get FREE marketing content To get free downloads To get discounts on our services To get access to our resource centre Many other Powerpoints in this series in the members area