Incentive - April 2009 - (Page 18)

PRIMER S e tti n g Up a Po i n t s - B a s ed M e rc h a n d i s e Pro g r a m By Dave Peer, IP Hinda Incentives , n these difficult economic times, compageting can vary depending on the audinies are closely evaluating budgets and ence for your program, the goals you looking for ways to maximize the results have set and the length of time you from every dollar they spend. Research expect it to run. Revenue-based programs shows that the effectiveness can be budgeted based on of non-cash awards is three incremental profits, with times greater than cashnon-sales programs a bit based award programs. more difficult to budget. According to the Incentive 4. Develop a communicaResearch Foundation, in a tions plan for your program. cash-based program a comHow will you announce and pany must spend 12 cents promote the program to achieve one dollar in throughout? How will parincremental profit (revenue ticipants be notified when generated by the incentive they have been awarded program such as increased points? Can you communipurchases, cost savings, cate via e-mail, snail mail or increased sales). In a proeven better, both? Regular gram using non-cash communication with particiawards, the investment is pants is very important to its four cents for every one dolsuccess. is vice presilar of incremental profit. 5. Offer an assortment of dent of client services for ChicagoThe cost benefit is there. merchandise awards that based Hinda Incentives. He is responWhat is the process to set up sible for buying, fulfillment, program will motivate your audience. an effective merchandiseDeveloping an assortment management and customer service. based program for your of awards appropriate for He worked with Macy’s, Target and company? your participants and Carlson Marketing before Hinda. 1. Determine what the designed to target the objecgoal is for your program and tives of your program is who your audience is. What will people need very important. The awards need to be to do to earn points? Make the program effective and memorable to engage particigoals a stretch, but attainable. pants and motivate them. The merchandise 2. How will you track and announce the offered needs to be current, trend right, be results for your program? Do you have the technologically advanced and competitively ability to manage the program using internal priced. The evolution of online technology resources or should you have a company in our industry allows the latest and greatest with online incentive technology assist? to be made available as awards. 3. Establish your program budget. BudA well-designed award assortment will • Lifestyle — what are their habits, attitudes, beliefs? • Social Class — how do they classify themselves? How does society? • Values/Opinions — what is important to them now? In the future? Psychographics to Consider I consider factors such as the demographics and psychographics of your target audience. Demographics to consider include age, income, culture, marital status, number and ages of children and geo-demographic profiles (zip codes—where do they live?). Consider Psychographics Dave Peer Different types of merchandise will motivate different types of people. Certainly there are some items that appeal to most groups and those are the items we typically find to be most popular and the highest redeemers. As a category, electronics have always been popular awards in incentive programs. Consumers like to have the latest gadgets and to show them off to their family and friends—providing the desired trophy value. Today’s consumers want the newest Apple iPod, Sony LCD television (37” or larger, of course!), or a Canon 10MP digital camera. The current economic situation means more consumers are cocooning and entertaining at home. As a result, they desire new items for their homes and specifically, their kitchens. Countertop electrics, vacuum cleaners, gas grills and even bed pillows are in demand. A great amount of expertise resides in many quarters of the incentive industry. There are a terrific number of incentive companies, representatives and industry groups available as resources. Utilize their knowledge to develop an award offering that will be appealing to your participants, motivate them and provide the results you desire from your program. ILLUSTRATION: KATHARINE SANDALLS 18 | Incentive | April 2009 |

Table of Contents for the Digital Edition of Incentive - April 2009

Incentive - April 2009
Editor’s Note: Speak Out!
Cover Story: Penn Mutual Stands By Its Incentives
Defending Incentives
Primer: Merchandise 101
Employee Contracts Work
Gift Card Roundtable
Incentive Strategies
Endo Pharmaceuticals
Travel News: Where To Go
Caribbean: Idyllic Deals
Cruises: Value Ahoy!
Potentials: Here and Now
Cameras: Smart and Active
Merchandise IQ Survey
Incentive Merchandise Buyer’s Guide

Incentive - April 2009