Incentive - April 2008 - (Page 66) THE INCENTIVE MERCHANDISE BUYER’S HANDBOOK CHAPTER 7 he incentive program is far from over when the qualification period ends and the awards given out. Detailed post-program analysis will determine its investment value for both the company and the incentive audience. It will also pinpoint areas of improvement for future programs. evaluating the program T GETTING FEEDBACK Survey all the participants following the program’s completion. Ask about the effectiveness of the various program elements, including its timeliness, rules structure, qualification requirements, promotion, quality of the communication pieces, any training efforts, and the awards themselves. Also, talk to those who administered the program. Did they encounter any problems? What worked? What didn’t? Encourage honesty and, perhaps, suggestions for doing better from all concerned; it’s PLANNING WISE the only way you’ll be able to improve upon things. Armed with this feedback, cast your own eye on the With feedback in hand from participants results, both the quantifiable (online or traditional mail surveys), and the intangible. For examadministrators, and your own observaple, calculate: tions, review each of these components • Units or dollars sold during separately, listing pros and cons, and the qualification period then judge the program as a whole. • Increase in market share 1. Goals • Incremental sales gains during the qualification period 2. Budget • Percentage of audience that 3. Measurement system participated 4. Awards • Percentage of audience that 5. Promotion met the goal • Exactly how much was spent 6. Communication portfolio on the program (Did the 7. Administration budget suffice or were there 8. External forces greater expenditures?) Other important questions to ask: • Did the program achieve its goals? • Did it improve morale, inspire good ideas, or promote loyalty to the company, its products and services? • Did participants like the awards? If you offered a catalog of choices at various levels of performance, what were the most popular picks? Did award redemption and delivery go smoothly? If not, what were the snags? • Did anything unexpected crop up in either a negative or positive way while the program was going on and at its conclusion? • How did the performance of participants compare to any non-participants? Break It Down Keep in mind the bigger picture beyond the numbers. In other words, what non-program related issues and events could have affected the program’s outcome? Consider: • Increases or decreases in pricing—Sales results may be influenced by lower prices or higher ones, regardless of incentives. • New products or packaging, new marketing strategy, a repositioning—Change can create excitement, but it also makes buyers wary and perplexed. • Increase or decrease in advertising expenditures—Up or down, these shifts will impact purchasing behavior. • Concurrent incentives—Either your company’s or a competitor’s. Multiple programs and promotions can cause confusion and focus attention on one over the other. • Changes in your distribution channel—This can be a positive or a negative, depending on whether those changes created problems or facilitated product sales. SPECIAL SECTION 66 | April 2008
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