Incentive - April 2009 - (Page 51)

your guide to planning INCENTIVE MERCHANDISE PROGRAMS THE INCENTIVE MERCHANDISE BUYER’S GUIDE people targeted, you stand to achieve greater effort and results—motivating even the underachievers. But budgeting is more difficult since you can’t know for sure how many winners and awards you will be dealing with. Increased sales, though, can usually pay for rewards. • PICK 10—Every tenth sales earns an entry in a sweepstakes drawing for merchandise prizes. • HIT-AND-WIN OR BUY-IN—The top 50 achievers get the award; those who reach at least 50 percent of their goal can pay a buy-in amount for the home theater system. IOPEN-ENDED RULE STRUCTURES A few examples • BASIC—Participants earn a predetermined number of points for every sale they make. • QUALIFIED—Participants earn points only after reaching a minimum goal. • RETROACTIVE—Similar to a qualified program, but the payoff includes credit for sales leading to the minimum goal. • ESCALATING—The more you sell, the more you earn. • BID-AND-MAKE—Participants set their own goals (subject to management approval) and are rewarded for achieving them. • TEAM BONUS—Participants receive bonus awards if everyone on their team makes the goal. ICLOSED-ENDED Limits the number of winners to only the top-tier or a specified number of qualifiers. Easier to budget since you’ll know the exact number of winners and awards you will need. However, this program type can alienate performers who just miss the mark, or those who consistently fall short but do improve on their past results. Repeat winners may dominate, which can be demotivating for the rest of the group, and challenging for planners who have to come up with ever more impressive awards. ICLOSED-ENDED RULE STRUCTURES A few examples • ONLY THE TOP WIN—The top 50 achievers qualify for the merchandise award. • MAKE YOUR OWN ODDS—Earn a chance to win for every sale. • UNEQUAL THIRDS—Participants are divided into three groups, and the top 20 performers in each group qualify for the award • LUCKY SQUARES—Make a sale and write your name in a square. Winning squares are picked at the end of the week for three months. SPECIAL SECTION April 2009 | 51

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