How Incentive Programs Can Boost Your Bottom Line
When it comes to improving your customer and employee retention, incentive programs are a dynamic way to enhance engagement and grow your business. Offering customized incentive programs and rewards to your employees and customers requires an initial investment but can offer excellent ROI for businesses of all sizes. Read on to learn more about incentive programs, measuring the success of your program(s) and to discover ways to improve or expand your current initiatives to increase your bottom line.
Benefits of Incentive Programs
When employees are engaged, they are more productive and dedicated to the company. A study conducted by Rymax found that while a simple “thank you” can go a long way, 69% of respondents said that if they were rewarded at work for their efforts they would feel more appreciated and motivated. When customers are motivated, they turn into repeat customers that are loyal to a brand or organization. Different types of incentive programs achieve different goals, but each will ultimately affect your bottom line in a positive way.
Implementing Incentive Programs for Your Company
A critical step in creating an incentive program is first determining who you want to target and what the desired effects of the program are. Do you want to create an improved customer experience or encourage your employees to be more efficient during work hours? Are you looking to grow repeat spend among current customers or reduce employee turnover?
Once you determine your program audience and what goals you’re looking to meet, you’ll need to create the program itself. You can fall back on mundane, traditional models or develop an innovative program that is specifically tailored for your audience. When executing a successful incentive program, here are five key tips to keep in mind:
- Create and communicate clear and consistent goals
- Ensure goals are achievable
- Provide participants with a platform for peer-to-peer recognition
- Use in-demand, desirable rewards that motivate
- Gain feedback from participants on what they like or would like to see improved within the program
Understanding & Measuring ROI of Your Program
ROI, or Return on Investment, is the measure used to evaluate the efficiency of an investment, in this case your incentive program. For some, ROI represents the exact profit you receive from investing in an opportunity such as advertising, purchasing new software, etc. When it comes to incentive programs, you can also measure ROI by performance indicators including the rise in employee engagement, productivity, customer retention and other areas of improvement that aren’t specifically tied to a monetary figure.
But to decipher the success of your program, be sure to figure out what the best measure is to use. There are many approaches to measuring the ROI of incentive programs, both tangible and intangible objectives. You can use these performance indicators as a way of measuring ROI, or you can collect data to create a larger analysis of the program’s success.
Keep in mind that gaining feedback from participants is also a vital component to measuring the effectiveness of a program. This can include surveys or focus groups where employees or customers can respond candidly.
The Bottom Line
Creating an incentive program can be time consuming and may require an upfront investment, but when implemented effectively, incentive programs will resonate with your audience and produce the desired results to boost your bottom line.
Offering employees and customers an incentive program that clearly communicates goals, offers a platform for peer-to-peer recognition, and ultimately rewards participants with brand-name merchandise that they crave will drive engagement, foster loyalty and bring a large return on investment.
You may want to consider working with an expert to help you create and implement a tailored program to ensure success from the start. At Rymax, we’ve spent over two decades creating and implementing successful incentive and reward programs that drive engagement and increase revenue.
If you are interested in learning more or setting up your own program, contact Rymax today.