From Reward and Retention Efforts
Programs to retain and reward leading sales, marketing and customer service people can give a $40 million lift to a one billion-dollar bottom line. That's what Andersen Consulting found in a survey of about 500 executives at more than 250 companies. The biggest payback, $13 million, came from efforts to motivate and reward employees, but note that programs to draw and keep talent ranked second, adding $10 million to the bottom line.
Their study primarily focused on large companies because small companies - the backbone of America, the companies that employ most Americans and create most of the new jobs - have not yet seized the value of incentive programs. Corporate executives invested in the concept, and follow up research has proven the enormous value of incentives and rewards, so now it's time for smaller companies to follow the lead.
We think businesses might be able to reduce the amount they spend on incentive and gift giving programs substantially, still reach their goals, and benefit from added values as well. When companies use i-gifts™ programs for their incentive and gift giving programs, they give repetitive rewards, and that's a highly effective way to change and/or reinforce behavior!
Most business schools don't offer courses that teach how to create effective incentive programs, so check out each page on our web site for a wealth of information. We recommend that you keep records of each promotion and use those statistics to help you design more cost effective, profit generating programs. Keep in mind that you may design a great program, but if you don't support it with ongoing marketing and promotional strategies, you may miss your mark.
$35 billion for incentive programs