Incentive - February 2009 - (Page 24) COVER STORY INSURANCE CHALLENGES Raise Your Right Hand… American Insurance Group’s now-infamous incentive trip saw the insurance giant’s CEO raked over the coals by Congress, on live television, for sending top executives on a junket to a luxury resort just days after accepting an $85 billion bailout. The fact that it was a channel sales incentive program that paid for itself gets lost in the outrage. Incentive’s Editorial Advisory Board Weighs In SOLUTIONS • Crack down on the luxury quotient. Your CEO watched the AIG hearings and doesn’t want to hear it. “You want a worthwhile incentive program but don’t want 200 agents in the spa at the same time,” says Bill Boyd of Sunbelt Motivation & Travel. “Offer individual incentives. There is less worry of publicity. One of our customers has done it, and there is a lot of interest out there in exploring it.” • Eliminating group travel eliminates the teambuilding aspect of incentive travel, as well as the loyalty created by building a personal relationship with channel dealers who offer a number of companies’ products. So try running smaller, regional programs augmented by teleconferencing, and include daily business meetings. • Communication is key—don’t eliminate the five-star hotel, just be ready to show clear and convincing ROI. In fact, be proactive, argues Robert Dawson, founder of The Business Group, based in Rocklin, Calif. “You should never be in a position of hiding,” he says. “You should be holding a press conference to say, ‘Because of these [program participants] we are in a position to grow, to bounce back when the economy improves, to keep people employed.’ It is a perception issue: We as an industry have often played up the sizzle not the steak, and it is coming back to bite us.” • If you’re not facing the AIG effect—say, at a privately held company—consider investing in a market share program. Now is the time to take business away from competitors who are laying low. Cindy Hoddeson, director, meeting & incentive sales, Monaco Government Tourist Office Q: How are companies that offer incentive and loyalty programs responding to the economic situation? A:Amongst our corporate client base, we see that planners are concerned with budgets and perception. Some companies are responding by canceling programs that have already been contracted as well as canceling and postponing options. Those that are moving forward are seeking ways to optimize their budgets. Some have reduced the duration of stay, eliminated room gifts and have included fewer tours. The programs are leaner. Amongst our insurance clients, however, the majority are not canceling their motivational trips. “ In our marketplace it is coming from the top. Mandates that you can’t go to Europe, you can’t stay at five-star properties. [CEOs] don’t want the press to pick it up. They fear that they won’t have their day in court— that no one will listen to the ROI argument. It’s sad, but if I were a CEO, I’d probably make the same decision. —Bill Boyd, Sunbelt Motivation & Travel Q: How do you think the industry as a whole can turn these challenges into opportunities? ” A: I think it is imperative that we remain positive with our clients and that corporations make incentive travel a business builder for their companies. Apart from the ROI, the ROE (return on experience) is a way for organizations to change behavior in their team, build leadership, demonstrate confidence in their producers and opportunities for these top achievers to bond. 24 | Incentive | February 2009 | incentivemag.com http://www.incentivemag.com
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