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The Latest Incentive Industry Resources & News

Wednesday, October 12, 2016

How to Improve “Anemic” Sales Results

Published by: Online Rewards B2B Channel Incentives

The Wall Street Journal reports that corporate sales profits are down for the fourth consecutive quarter. The attached Business Journal article from Gallup suggests that it's because B2B companies are doing it wrong!

Employee Recognition

Business-to-business firms are focused on increasing market share and ramping up mergers and acquisitions. Gallup recommends that, to help their customers grow and generate more organic growth for themselves, B2B companies must develop a sales strategy that differentiates them.

Gallup quotes CSO Insights, who reports that just 58% of sales reps are meeting their quotas, and 71% of customers are at risk of taking their business elsewhere.

How do we encourage sales reps to become trusted advisors to clients, close more business, and retain more clients? And then how do we ensure that we keep those salespeople who own the client relationship? One proven way is to use sales and channel incentive strategies.

Best-in-Class companies with defined Sales Incentive Programs see a 14.8% higher team quota attainment and 5.9% higher customer retention rate than those who do not use incentive programs to drive performance.

This same study of Best-in-Class companies finds that the companies who outsource the management of incentive programs show higher lead conversion rates (30.4% v. 23.9%) and lower average sales cycles (4.2 months v. 5.3 months).

Best-in-Class firms are also 94% more likely to offer peer-to-peer and public recognition. When internal and external sales partners feel valued and recognized, they are less likely to seek other opportunities.

Are your profits showing signs of anemia? A professionally-designed B2B channel incentive program might be just the transfusion you need to drive sales performance.

Wednesday, September 28, 2016

Employee Rewards: Is Cash King?

Published by: Online Rewards Employee Recognition

Is cash really king? Not so much in the world of employee reward and recognition programs. In fact, studies from The Incentive Research Foundation find that sales incentive and employee reward programs using tangible rewards yield greater results than when cash is used as an employee incentive. Our webinar on Building a Culture of Recognition: Monetary and Non-Monetary Recognition covers this subject in greater detail.

Employee Recognition

Here are just a few reasons why travel experiences, merchandise, or other tangible rewards out-perform cash when it comes to employee reward and recognition program incentives:

  • Merchandise and travel are not easily confused with compensation (it's clear that the employee is being rewarded for going above and beyond)
  • Tangible items in rewards programs offer "trophy value" (gives the recipient something to show while they're telling about their accomplishment at work)
  • Merchandise rewards are perceived at a higher "retail" value
  • They're memorable (cash is often used on gas, groceries, or everyday items)
  • Intentionally selected brand-name merchandise for employee rewards can reinforce the company's or product's brand attributes
  • Tangible employee rewards offer residual value (every time the employee sees or uses the reward, they remember the accomplishment and why they received it)
  • Merchandise offers tax advantages (cash is taxed as compensation; when merchandise is used as an employee incentive or benefit in a defined program, it is taxed more favorably to both the recipient and the company*)
  • Merchandise offers budget flexibility (when budgets are reduced, it's difficult to hide a reduction in cash rewards; it's very possible to reduce budgets when necessary while still offering a meaningful merchandise reward)

Before you consider using cash for employee rewards, try tangible rewards and experiences that increase employee engagement, offer a higher return, and will motivate your employees to perform at higher levels!

*This is not intended to be tax advice. Consult a tax professional for advice when structuring an employee benefits or employee rewards or recognition program.

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