Promo - September 2008 - (Page 33)

P&I Research champagne tastes Despite the economic downturn, more companies are offering customer-based incentive programs in hopes of boosting their bottom line. That’s the top-line theme from marketers in Promo’s 2008 premiums and incentives survey. Of the 216 respondents, 42% offer customer or prospect-oriented incentive programs, up from 35% last year. And 11% expect to create one within the next year. Even better, 39% plan to boost spending in 2009, whereas nearly the same number say their budgets will stay the same. “Organizations realize they need to take extra measures to have products or services noticed by a consumer base that’s reluctant to purchase,” says Karen Renk, executive director of the Incentive Marketing Association. “In a down economy, there tends to be a knee-jerk reaction to cut costs. But smart companies are making sure they’re continuing to utilize recognition and incentive programs.” What’s the top award for customers? The answers vary. Gift cards are favored by 23% of the marketers polled, followed by cash, travel/vacations and gift certificates. Also popular are gas cards and grocery cards, thanks to soaring gas prices and food costs, says Rich Killian, past president of the Incentive Gift Card Council, and president of consulting group RK Incentives. “If you want your award program to sizzle, pop a gas card in there,” Killian says. “There’s much more appeal for merchants. Giving away a gift card will get people to spend more.” Marketers are offering consumers more and better rewards, survey shows By Amy Johannes What about return on investment in incentives? About 60% that measure it use incremental sales as a basis. But a surprising 14% don’t measure ROI at all, compared with 10% last year. That’s a mistake, says Bob Dawson, chairman of the Incentive Research Foundation’s Research Committee. “People are missing the boat,” Dawson argues. “Folks who aren’t measuring are saying, ‘I don’t want to open a Pandora’s box.’ They’re trying to keep things under the radar.” In fact, firms that track ROI have reason to be pleased. The metric is on target for more than half, and below expectations for just 14%. As in past surveys, premiums are again the top ROI driver. They deliver a better return for 55% of those quesContinued on page 37 Most Popular Employee Incentives 60% 54% 50 40 30 20 15% W ■ 2008 ■ 2007 For more information on events, go to www.promomagazine.com. RSS Webinar Conference Podcast 37% Newsletter Web 18% 11% 5% 11% 9% 4% 10 0 8% 2% 4% 2% 7% 2% 6% N/a 2% 2% 4% 2% N/A Cash Gift cards Other Gift certificates Travel/ vacation Stored value card Time off Dining/ Stock/ entertainment stock options Don’t know No answer Base: Respondents with an employee incentive program Promo / WWW.PROMOMAGAZINE.COM / September 2008 33 http://www.promomagazine.com http://www.promomagazine.com

Table of Contents Feed for the Digital Edition of Promo - September 2008

Promo - September 2008 Contents Editor's Note Consumer Driven Magic Makeover Free Flight Legal Checkup Lasting Impressions Pop A Shop Commentary Squeezed Q&A: Eco-Friendly Champagne Tastes Safety First Resource Center The Agency Center Web Marketing 101 Index of Advertisers

Promo - September 2008

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