The Different Types of Incentive Programs
Whether the program is targeting workers in startups or large enterprises, or if it aims to engage with customers at any stage of the funnel, rewards are a no-brainer strategy to build valuable relationships with people. Incentive programs help to increase CLV, boost customer loyalty and assure future sales.
Nonetheless, there are plenty of incentive programs out there that may not be the best one to implement in certain working environments or for specific client profiles. Here we mention the most used schemes that had proven results for companies looking to increase their sales or make a shift in their work culture.
Sales Incentives, Contests and Performance Improvements
Sales teams are pivotal to keep the company afloat – for that reason, they are constantly under a lot of pressure from managers.
To keep a positive environment, you can create an incentive program in the long and short run. For example, “surprise” competitions in which sales teams are informed of a prize at the end of the day or week if they achieve goals. Or maybe you can program a work trip every quarter if the sales team is reaching their sales target.
In case you encountering a downtrend in your sales, offering performance improvements can help you deal with it while working in parallel with your marketing strategy to attract more customers.
Customers are seduced by loyalty programs, on average clients taking part in loyalty schemes spend more than other customers. Likewise, they tend to turn into brand advocates faster and it is easier for marketers to gather information to build more accurate profiles.
A widely used program is the “point system” in which customers get a number of points depending on the cost of the product they are acquiring – later, they can exchange the points for free products. This particular scheme is highly used for eCommerce stores.
Companies hiring professionals dealing with high-risk activities should consider incentives programs to look after their employees by enhancing the use of safety implements.
One of the best ways to deal with security problems is by implementing small rewards for accident-free days. You can create a system of points for the whole team to get a free lunch at the end of the month, or maybe work trips.
A good tactic to harvest information is by offering gifts without needing to buy anything. Although obviously the brand won’t generate many sales at the beginning, companies are able to nurture their database and improve the brand image.
These schemes are used a lot on Instagram influencer campaigns. Here, they often ask to like the post and tag a couple of people to participate in a giveaway from their sponsor.
These programs lead to a steady flow of conversions as long as the brand has a well-researched customer profile. Besides increasing conversions, gifts-with-purchase adds extra value to the product.
Let’s say if a beauty store wants to launch their new matte lipstick, they could offer a free lip balm or an eyeliner with it just to make it more appealing.
Rewards in training programs are an attractive way to keep employees on top of their game. They are also effective for online education platforms to encourage students to take classes seriously and decrease the course dropping rate.
Recognizing employees for their loyalty doesn’t only improve the image of the company among workers, but also increase their sense of belonging. Service awards range from parties to celebrate 5, 10 or 20 years’ service, to special gifts such as trips with their loved ones or simply gift cards.
For companies striving to increase productivity, awards for perfect attendance are ideal to encourage workers to get to the office on time and therefore, finish their tasks under deadlines. You could test rewarding a whole division with benefits, such as more coffee breaks or free weekly breakfast for the employees with no work delays.
Wellness programs are an excellent long-term strategy to diminish work stress, productivity guilt and negative company culture. Nevertheless, it is clear not every wellness program will be equally appropriate for every employee – then, the scheme should be structured with suitable rewards to encourage workers to attend, even if it is not their cup of tea.
Some examples of wellness programs are healthy cooking classes, yoga at work, therapy for employees or even build a “nap” room.
Highly efficient frequency programs are widely used by credit card companies, who often associate with airlines, hotels, clothing brands and other goods to offer a comprehensive service.
Regardless if it is a birthday or a holiday, corporate gifts strengthen relationships with their employees, humanizing the brand and improving the overall work environment.
Corporate gifts could be a welcome package with messages reflecting brand values or could be a Christmas present for the employees’ family. In any case, the final goal is to make workers feel part of the company.