Our Results Speak for Themselves
 
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%.
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