Business Improvement Through Incentive Programs
What does a business do when they want to reduce accidents in the workplace? Or when they want to reduce health insurance costs? They create an incentive program. Of course, incentive programs are common in sales (think sales contests), but are found in all areas of business. Here are some examples of incentive programs:
- Training programs (Earn rewards as you pass each level of online education)
- Service awards (Length of service, such as five-year, 10-year anniversaries, etc.)
- Attendance programs (Awards for perfect attendance at work)
- Sales incentives or contests (Achieve your sales objective and win!)
- Loyalty programs (Buy 10 coffees and get the 11th one free)
- Safety programs (Break our accident-free-days record and the team celebrates)
- Sweepstakes (No purchase necessary: enter to win!)
- Gifts-with-purchase (Buy this washing machine and get a free set of towels)
- Wellness programs (Achieve set goals in a structured program and earn rewards)
- Frequency programs (Frequent flier miles, hotel stay rewards)
- Corporate gifts (Gifts sent to customers on their birthday, holidays, etc.)
- Performance improvement (Set and achieve specific performance goals such as reducing accounts receivable, customer service measures or manufacturing cycle time)
- What are incentive programs?
- Incentive programs are systematic internal or external campaigns that require specific actions on the part of a specified audience, which produce measurable outcomes achieved through integrated motivational strategies.
Apologies for that rather wordy definition, courtesy of the Incentive Marketing Association. In simpler terms, it's the coupling of goals with rewards. The target of those goals might be suppliers, customers, or employees. And while the rewards might be monetary (increased commissions for higher sales), more often they include tangible non-monetary gifts. Attractive gifts are obviously a key component.
Lumo Energy recognized that they had some weakness in their customer service teams. To make needed improvements, they established goals to reflect the company culture they wanted to establish.
- Being easy to deal with
- Constantly looking for a better way
- Working together to drive results
- Taking pride in who we are and what we do
- Passion for our customers
Effective incentive programs don't happen on their own. It takes teamwork. APTCO would love to be your partner on that team. We'll help you through 10 steps to an effective program.