Incentive Program Case studies

Our experience shows that Incentive Programs are valuable management tools that can be used for performance improvement and to create business solutions with measurable financial and non-financial results. Traditionally, these programs have been used to increase sales or profits, however, they can also be used to solve other business issues. Our customers have used travel incentives, merchandise incentives and other incentives to reward their program participants. Here are just a few examples of the results we've achieved for our customers through the use of Incentive Programs.

ROI Incentive Programs increase profits in a slowing economy

An office machine manufacturer's representative located in Philadelphia approached us with a request to develop an incentive travel program that would increase sales during a slow economy. The company was facing an extremely competitive environment, in which customer purchases were significantly reduced and decisions to buy were being delayed. Sales projections for that year were equal to (or slightly lower than) previous year. Layoffs of members of the sales force were imminent if sales could not be increased.

We evaluated the company's internal and external environments, and discovered an untapped market in the area of small to medium-sized businesses. Working with the office machine manufacturers that the client represented, we developed an incentive program that focused on sales to these customers, thereby creating a new market opportunity. Our projections for the incentive program reflected a potential sales increase of 5% to 12%.

As a result of the incentive program, sales increased by 17%, and set record profit levels for the year. This achievement was recognized by a national sales publication in a feature story that outlined how the incentive program produced record levels of sales and profits.

ROI incentive programs improve employee productivity

A San Francisco based insurance company wanted to improve their customer documentation processing time. In an effort to reduce the average processing time of 2+ weeks, they had implemented six different incentive programs. We surveyed employees, and learned that these incentive programs were extremely complex, and difficult for employees to understand.

We immediately eliminated all the current incentive programs, and established a single company-wide program with a goal to reduce the document processing time to a maximum of 3 days. The program rules structure was clear and easy to understand, and rewarded employees for cross-functional/departmental assistance.

As a result of the incentive program, 80% of all documents were processed within 48 hours. Customers were surveyed at the conclusion of the program, and reported a 98% approval rating for the services provided by the client. Employees were also surveyed, and reported a 93% job satisfaction rating. The incentive program produced a return on investment of $3.50 for each $1.00 invested by the client.

ROI incentive program used for Quality Improvement

A Texas-based manufacturer was increasing production levels to meet market demands for their products created by sales incentive program designed to increase sales. This program was successful, but company profits were declining.

Our impact analysis showed that the incentive program did not take into account the impact on production and Customer Service. While sales increased, the level of defective product returns and related Customer Service issues also increased, creating an increase in the costs associated with after sales support.

We revised the existing incentive program rules structure, tying sales and production objectives to quality goals. Quality of the products improved, and Customer Service issues were reduced. Sales increases produced profits that exceeded the original program objectives by 30%.

ROI incentive program used to improve employee retention

A small retail establishment was experiencing difficulty finding and retaining employees. Unemployment rates were extremely low, and a new mall in the area was attracting a majority of the available retail employee base. The client was spending significant time hiring and training new employees, and could not devote time to growing his business.

We worked with this small business owner to establish a strategy for attracting and retaining employees. Our strategy included a study of the competitive forces in the area and a demographic profile of the retail employee workforce. We calculated the costs the business owner was spending to hire and train employees, and the estimated loss of revenue.

An incentive program was developed to attract qualified employees, retain these employees, and provide the business owner more time to focus on the growth of his business. As a result, employee turnover was substantially reduced and the client was able to take actions that increased his revenue by 10%.

ROI incentive program used to increase customer base

A regional bank in New England wanted to increase its total customer base. The bank had a limited budget for marketing expenses, and was competing with large banks that had significant advertising exposure.

We analyzed the resources that were presently being utilized to acquire new customers, and determined how to attract more customers at a lower acquisition cost. The implementation of the incentive program did not require additional marketing funds, and was projected to increase the customer base and lower acquisition costs.

As a result of the program, the customer base was increased by more than 50%. In addition, customer acquisition costs were reduced by 20%.

For more information about our services or to speak to one of our sales consultants, call us at 888–644–0217 ext. 224 or request information.