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

2. 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

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

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

5. Company Size Information

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

7. 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

8. 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).

9. 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).

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

11. 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

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

13. Award Usage by audience
THE WHO
Award Usage by audience

14. Usage By Audience

15. 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).

16. 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.

17. 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.

18. 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.

19. 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.

20. Travel Specific

21. 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?

22. HOW MUCH

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

24. 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.

25. Most Common Per Award Amt

26. Award as % of Salary (TippingPoint)

27. 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.

28. What Results Are You Experiencing?

29. Give us “The One Big Thing”