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Loyaltyworks Incentive Programs
Motivate and Reward the People that Drive Your Business Results
Motivate and Reward the People that Drive Your Business Results

Loyaltyworks Incentive Programs's posts

How to Measure ROI of Sales Incentives

Week four of our weekly how-to series has us diving into a little bit of a deeper subject than usual. We’re going to be briefly discussing how you can measure the ROI of your incentive program. Since our word space is limited, we’re just going to get right to it.
• Set two groups to evaluate, a experiment group and a control group. Your experiment group gets the incentive and your control group doesn’t. Measure results and you’ve got your program’s ROI.
• Another way is results-based. If you’re doing a sales program, simply compare sales results during your program to the results for the same period of time or event when you didn’t have the program running. If you’re a garden retailer and are driving sales in the opening of the spring season, measure a year that didn’t have the program versus a year that did. That’s your ROI number.
Some things you should watch out for:
• Evaluate the sales for the period of time surrounding the program as well. If your employees know a reward program is coming, they may put off sales until they can get an added reward for them. You also need to look after a program to see if there’s a slump in performance due to all of your salespeople cramming in their deals during the program’s timeframe. While these numbers are usually minimal, they do have an effect on the true success and ROI of your incentive program.

How To Start An Incentive Program

In order to better connect with and assist our customer and fan base, we’re going to be doing a weekly “How-to” series giving brief overviews of ways to create or boost your workplace incentive program. Our first how-to is one we feel is the most important step to having a successful workplace incentive program – How to start an incentive program.
You can start an incentive program of purposes – increasing sales, improving processes, or improving safety. A lot of people mistakenly think that for a program to be successful, it’s got to be expensive. This isn’t true. For a program to be successful, it’s got to be well planned out, have a couple of key factors in place, and match your company’s culture. Based on our experience, here’s where to start:
1. Define program objectives – Detail what you want your program to accomplish and let your participants know how you plan on measuring it and what the results and rewards are.
2. Set your budget – Include in this your reward costs, the cost of administration, and your promotional materials.
3. Set your program guidelines – Outline exactly what your program’s purpose is, what your employees have to do to participate, and what the timeline for the program and the reward is.
4. Promote it – Create posters to put up, flyers to hand and mail out, and email blasts to send to everyone involved. Make them all fun and informative (you’d be surprised at how many people make this material stuffy), and generate some enthusiasm for the program.
5. Kick-off – Use the promo materials and methods mentioned above and let everybody know that your program is on and it’s time for them to get involved and start winning some rewards. If you can, send out reward teasers showing what people can win in the upcoming timeframe.
6. Manage it – Adhere to the guidelines you advertised to your employees originally to measure their progress and do it consistently. Once it’s all said and done, announce winners and follow up by letting everyone know how big of a success it was for your company.

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Incentive Programs from Loyaltyworks
January 30, 2012 (4 photos)
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