Sales & Marketing Management - September/October 2008 - (Page 32)

TECHNOLOGY TRAINING INCENTIVES TRAVEL/MEETINGS Making the case for travel (Part II) Weighing the pros and cons—plus ROI pointers ment, not an incentive,” says Bob Dawson, chairman of the Incentive Research Foundation and vice president of sales and marketing for Custom Design Marketing. “That can create problems with retention, since the ‘middle’ will be turned off after repeated frustrated efforts and will eventually look for other opportunities. “The efforts of candidates who almost made it should be acknowledged, and the program should make it possible for them to make it next time,” he continues. “Tiered incentive programs may help incentivize the middle because it makes some kind of award achievable. However you tailor your program, it all must be within reach.” Ozer agrees. “If the middle 60% think they won’t make [the reward], they won’t engage in the incentive program at all,” he says. So now that the program goals are established and the structure is set, it’s time for the next decision—do you reward your top performers singly or as a group? The following list of advantages and disadvantages should make your decision easier: Editor’s Note: Part I of this story (available online at www.salesandmarketingmanagement.com/travel1) analyzed the challenges and opportunities of using travel as a reward in incentive plans. In Part II, we take a deeper dive, analyzing individual versus group travel, as well as providing some pointers for sales managers who are trying to determine the return on their incentive investment. An expanded version of this story, including exclusive content, can be found at www.salesandmarketingmanagement.com/travel2. Group travel pros Properly structured programs can have a high impact on morale and loyalty for those who receive them. s They offer top management an exceptional way to mingle with key audiences in a relaxed way. s They can become an important recruitment tool. s They have particular value with channel partner programs because of the ability to meet and get to know dealer and distributor salespeople, in addition to company principals. s W istock photo hile merchandise is a perfectly legitimate reward option in an incentive program, travel rewards are among the most popular choices, both for the manager creating the program and the people competing in it. They generate excitement among many different groups of people—from the winner, to the colleagues the winner tells about the experience, to those who almost made the reward and need to continue believing they can get it next time. That’s key to a good travel-based incentive program, according to Ira Ozer, vice president of business development for Meridian Enterprises. “Ideally, the program structure should be ‘open ended,’” he says, “so that everyone who achieves their stated ‘stretch’ objective—such as increasing sales X% above their quota—gets to go on the trip.” If it’s financially impractical to send everyone who hits the goal, it’s important to avoid having the same people always win the reward time after time. “If the same people always win, the reward becomes an entitleSEPTEMBER/OCTOBER 2008 Group travel cons They require getting multiple people out of their offices at the same time. s They require expert planning using travel suppliers and venues with demonstrated experience in creating or hosting motivational events. In other words, this is a job for an experienced meeting planner, not a beginner. s They carry the highest cost of most award categories. s Safety and security issues have to be considered. s Individual travel pros s Thanks to the advent of gift certificates and cards, individual travel rewards have become almost a staple 32 SALES &MARKETING MANAGEMENT www.salesandmarketing.com www.salesandmarketingmanagement.com http://www.salesandmarketingmanagement.com/travel1 http://www.salesandmarketingmanagement.com/travel2 http://www.salesandmarketingmanagement.com

Table of Contents Feed for the Digital Edition of Sales & Marketing Management - September/October 2008

Sales &�Marketing Management - September/October 2008 Contents Editor's Letter Brian Tracy University Smart Sales Sales Strategy Smart Marketing Marketing Strategy Smart Management Management Strategy The Low-Cost Sales Leader Why Sales Process Gets the Shaft Training Q&A Technology Making the Case for Travel (Part II) Travel/Meetings On the Road The Way I See It

Sales & Marketing Management - September/October 2008

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