Sales & Marketing Management - July/August 2008 - (Page 30)

TECHNOLOGY TRAINING INCENTIVES TRAVEL/MEETINGS Making the case for travel (Part I) When you need a healthier P&L, give your team some R&R company understands the value provided by sales incentive programs. That’s an especially important consideration when the reward is a trip to somewhere exotic, which might be viewed even more skeptically by some bottom-line-minded executives. “Procurement and purchasing professionals need to have a better understanding of what the incentive program really is all about,” Dawson says. “Generally, any department that is on the outside looking in at an incentive program only sees the sizzle. They hear about the exotic trips, but they do not see what that did for the company.” “Many incentive travel programs are not designed to be properly measured, so they are considered ‘discretionary’ and, therefore, ripe for cutting,” adds Ira Ozer, vice president of business development for Meridian Enterprises, a full-service performance improvement company specializing in incentive programs. “It is critical to include ROI planning and projections as part of the strategic program design process, so that we can help them and their ‘internal client’—our true customer—to determine the financial benefits of incentive programs.” W istock photo ith the ghost of a recession lurking around the corner, there’s no shortage of stress clouding your top performer’s mind. Just when you need your best people to be playing their best game, research indicates that fewer than 24% of American workers are working at full potential, 50% of workers do no more than they are directly asked to do and 75% of employees admit they could be more effective in their jobs. Today, the biggest challenge companies face when it comes to their much-needed incentive programs is not breaking the bank, while also providing a program that’s good enough to create an emotional engagement with employees. Considering that a sales incentive program can be one of the lowest-risk investments a company can make—with the potential for the highest return—the current economic situation should not matter, says Bob Dawson, chairman of the Incentive Research Foundation (IRF) Research Committee, and vice president of sales and marketing for Custom Design Marketing. Surprisingly, the economic situation might make travel an especially interesting reward, since traveling is a treat employees might not consider getting themselves when the budget is tight. The first step for any sales manager is to ensure his JULY/AUGUST 2008 Keep your eyes on the prize Even before you consider your audience, you must decide which problems you want to combat within the company, such as low sales, low quality, low productivity, poor customer service, turnover or absenteeism. “Incentive travel planning is not about how to buy hotel rooms, airline tickets or cruise cabins,” Dawson says. “It’s about how to change behavior that will impact your financial outcome. In companies where incentive programs are well developed, properly planned and implemented, these programs are seen as investments, not just an expense.” In fact, a good incentive program won’t cost the company anything if the award is earned based on incremental improvement. “In order to maximize their potential for ROI, sales leaders need to spend the time upfront to properly plan their program,” Dawson says. He adds that the recipe for success consists of structuring rules that are viable and can demonstrate an ROI, and monitoring the program throughout. “It is important to first ensure that the program has been designed to pay for itself from incremental profwww.salesandmarketing.com www.salesandmarketingmanagement.com 30 SALES &MARKETING MANAGEMENT http://www.salesandmarketingmanagement.com

Table of Contents Feed for the Digital Edition of Sales & Marketing Management - July/August 2008

Sales & Marketing Management - July/August 2008 Contents Editor's Letter Brian Tracy University Smart Sales Sales Strategy Smart Marketing Marketing Strategy Smart Management Management Strategy The Mother Lode of All Market Data Returns Embracing the Future Training Technology Incentives/Motivation Don't Become a Target Abroad Book Excerpt On the Road The Way I See It

Sales & Marketing Management - July/August 2008

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