Incentive - April 2008 - (Page 64) THE INCENTIVE MERCHANDISE BUYER’S HANDBOOK CHAPTER 6 Presenting and Delivering the Awards CASE STUDY Results-Oriented Carlson Marketing was engaged by a leading pharmaceutical company to encourage its field sales force to sell more product. In the process, Carlson was asked to consolidate several separate recognition programs into a flexible, single-umbrella program. Goals included setting up an ROI analysis to understand and gauge the program's impact, and creating a link between performance and awards. Managers were allowed to be flexible in designating winners. Carlson structured its program so participants earned points through manager-toemployee recognition and district or regional contests, as well as by meeting quarterly or annual sales goals. The program was promoted with Web-based and printed communications, including a special Web site, and merchandise mailers highlighting the gifts that could be awarded. Managers were able to recognize achievement on the spot with additional points. Each employee's points were "banked" until redeemed for catalog merchandise, retail gift certificates, or travel awards. The results were powerful. According to Carlson, managers who used the merchandise-reinforced program enjoyed a 6.9 percent sales achievement advantage over managers who didn't use the program. Further, participating employees had a 50 percent lower turnover, resulting in an estimated $111 million in savings. Overall ROI exceeded 1,000 percent. feasible avenue to pursue, of course, but the extra thought involved in these more personalized awards can make an employee or client feel truly appreciated. AWARD PRESENTATIONS Award Redemption Redeeming the merchandise awards is the final hurdle. The Internet has streamlined the process, but participants do usually have a choice when they order their awards. ent's home may be engraved with corporate and personal information on the bottom. In this case, only the recipient would be aware of the signifiVia mail . . . . . . . . . . . . . . . . . . . . . . . . . . . .24.5% cance of the award. The same kind of On the Internet . . . . . . . . . . . . . . . . . . . . . . . .31% subtlety is possible with watches (engraved on In person . . . . . . . . . . . . . . . . . . . . . . . . . . .75.5% the back rather than logoed on the face), or Phone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.7% golf clubs (with logoed caps on the ends of Fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.7% clubs, for example, rather than emblazoned Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.4% golf-club head covers or bags). Source: 2008 Incentive Merchandise IQ Survey In recent years, customization has moved beyond the corporate logo and monogrammed initials to a much more personalized level. Top sales producers have received custom-made designer dress shirts, tailored to their styles and measurements; custom musical instruments have been used as client gifts. Your budget and audience type will determine if this is a You may think your motivational job is done once all the merchandise awards have been redeemed and points tallied. But the plasma television, diamond watch, and cappuccino/ espresso maker are just product until they are put in proper context and given meaning. Recognizing the winners for their specific accomplishments as well as everyone who worked towards the program’s success adds additional trophy value to an award and reinforces their actual achievements. You can communicate the victories in different ways. Award presentations or at least the acknowledgment of achievements earned in an incentive often go hand-in-hand with a special event. Both sales (commissioned) and salaried/hourly (noncommissioned) employees are traditionally recognized at a special awards dinner or luncheon, or perhaps during a meeting or incentive trip positioned as the upper tier of a multiaward program. Using the worksheet that details employee award preferences, managers can also make note of employee presentation preferences. It is surprising, for example, how many employees would prefer private instead of public recognition, handwritten notes instead of fancy plaques, or one-on-one time with senior management. Consider making the reward presentation fun. Emulating TV game shows with techniques such as spinning wheels, puzzles, and prize questions can produce camaraderie and good humor far greater than a mere congratulations and a handshake. This is particularly so when groups of employees win awards for team achievement. Share success stories and strategies to improve performance. Change recognition methods frequently to engage worker interest and the sense of fun. Salespeople, especially lavishly compensated successful ones, usually are more motivated by the peer approval that accompanies the merchandise award than by the merchandise itself. Thus, craft award presentations here with maximum peer-group visibility and publicity in mind. Make use of the company newsletter or Intranet. Publicize the program, its results, and the people who made it happen. SPECIAL SECTION 64 | April 2008
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