Knowledgeable and attentive employees account for 80% of the reasons
consumers feel satisfied, according to a PNC Bank Corp. survey.
Fewer than one in four American workers is working at full potential;
half of all workers do no more than directly asked, and 75% of employees
say they could be more effective in their jobs, according to the Public
Agenda forum.
70% of unhappy customers abandon vendors because of poor service, according
to the Forum Corp.
A 5% increase in customer retention can increase lifetime profits from
a customer by 75%, according to the Loyalty Effect by Frederick Reichheld.
(Copyright IPC)
‘Reward and retention
efforts can produce multi-million dollar returns.’ That’s
what Andersen Consulting found in a survey of about 500 executives at
more than 250 companies. The study revealed that programs to reward
leading sales, marketing, and customer service people can give a $40
million lift to a business’s bottom line.
(Copyright IMA)
What then can we conclude
from these survey results?
Loyal customers and productive employees are the basis of a
successful business. But to retain
and motivate people can be a difficult challenge.
Yet with a tool that will make them feel a significant part
of your company's success, it'll be an easier task.
Vacation and travel incentives, a proven motivator,
will achieve this purpose.
Do your incentives measure up?
Today’s competitive marketplace demands a new breed of incentive
programs. Several companies have already learned that standard
incentives of years ago just don’t cut it with the customers as well as
the workers of the new economy. Your incentives have to appeal to your
clients’ and employees’ wants or desires in order to measure up.
VacationandTravelDeals.com offers incentive programs that were designed
to evoke an emotional response and motivates people to take a positive
action. With our travel incentive programs, everyone wins. Your sales
people will close more sales, your clients will enjoy an exciting
vacation experience and your business will increase its profits.
Why use travel incentives?
Travel
is considered to be the most effective reward.
According to the result
of an email survey conducted by CMI, 58% say travel is more effective
than cash or merchandise. Survey respondents consider travel to be the
most effective reward.
(Incentive Travel Fact Book)
“ Cash bonuses are necessary but
travel is a higher reward,” says Verizon’s Porterfield.
Additionally, in a recent survey of American
workers, 85% said they were motivated by vacation travel incentives.
Nothing beats travel for
long-term results.
On a 1999 Incentive Survey
of Buying Practices conducted by the Incentive Federation, survey respondents
believe that travel and merchandise awards are remembered longer than
cash payments. Specifically, 69% strongly agree with this statement.
(Copyright IPC)
Porterfield added, “
When people spend their money, it’s gone. But the recognition
that comes from our travel incentives lives on.”
Travel has a universal appeal and
high-perceived value.
USA Today, on their recent
survey, stated that “93% preferred travel over other incentives.”
This is because vacation travel is something that some or most people
would not be able to get for themselves.
Travel is desirable.
Another question asked
on the Wirthlin Worldwide Research 1999 survey was “Suppose your
employer wanted to reward your work performance. What would you find
most rewarding?”
88% - indicated a trip they plan and take
with a companion to the destination of their choice
5% - indicated a trip planned for them and a companion of choice with
their co-workers
5% - indicated a trip planned just for them and their co-workers
Travel has a promotion value.
A more exciting and memorable program can
be built with travel than you can with cash.
Do travel incentives work?
According to the 1997 Incentive Travel Facts survey, travel incentives
increase sales by an average of 15%. In addition, half of the respondents
reported that travel incentives meet 75% - 99% of their objectives.
(Incentive Magazine)
Where
can I use travel incentives for?
Sales Incentives -
To increase sales
In a May 1998 Promo Magazine
special report, it was noted that LifeUSA attracted new agents and sent
sales soaring by abandoning its annual cash incentive program for a
more inclusive campaign that gave out merchandise and travel. By the
program’s conclusion, policy enrollments exceeded LifeUSA’s
initial goal by 700%. There were 10,000 certificates issued and were
more than twice what company has planned for. (Copyright
IMA)
Employee Incentives - To motivate, retain and reward loyal and efficient
employees
A small retail store in
Maryland, Target Appliance, used travel incentives. “ We introduced
our first travel incentive for sales employees five years ago,”
says President Daryl Gamerman, “and since then we’ve only
lost staff due to retirement. I don’t ever have a problem with
our sales people not working hard or volunteering for extra work, because
they know it will help qualify them for a great trip.
Customer Loyalty Incentives - To build customer loyalty and trust
The Frequent Builders Program
at Garco Building Systems offered travel awards to individuals. Since
launching the program give years ago, Garco has experienced a 15 to
25% growth rate, compared to an industry standard of 2-3%. In 2000,
the company grew a robust 37%. While it’s impossible to measure
precisely the role that the Frequent Builders Program played, “there
is no doubt in mind that it helps to build customer loyalty,”
says Loomis. (Incentive Travel Factbook)
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