Dear Dan: Sales are sagging, our customers are grumpy and employees can hardly afford gas to get to work. Got any ideas for getting things back on a more positive track? – Sagging Sales
Dear Sagging: When sales slump and employee motivation slips, it may be time to dangle a few carrots to re-energize your customers and staff. When it comes to enticing customers or motivating employees, “incentives” are good weapons to have in your marketing and management arsenal.
According to Arizona-based Incentive Logic, achievements should be recognized immediately with rewards that have meaning for your business that goes beyond a simple cash value.
Steps to developing a successful incentive program include these:
• Establish specific objectives: These could include increased sales, improved attendance or more Web site registrations.
• Set a budget based on the number of participants, length of the program and desired results. Costs include awards, promotion, administration and training.
• Choose awards carefully. Individuals must be emotionally vested in obtaining an incentive award or they won’t pursue it. First ask people in your target group what’s important to them.
• Administer the program, measure performance and celebrate its success.
Here are a few incentive-related ideas, sources and solutions to consider:
Gasoline gift cards are one of today’s hottest business incentives. Use them to attract and retain customers or entice them to upgrade. They’re also great for employees, as year-end bonuses, attendance rewards or for achievement. And they work great as a fuel allowance given in advance of travel.
A company called SVM (www.svmcards.com) is a great place to either buy gas and other gift cards, or create your own branded promotions and get marketing, management and fulfillment help. SVM offers 14 different gasoline gift cards, from ARCO’s PumpPASS to Texaco’s Gift Card. You’ll also find retail gift cards, restaurant gift cards, travel gift cards and card accessories, such as sleeves and greeting cards.
Quick-pay incentives are a great way to speed cash flow during slow periods. Customers who frequently take the maximum (or longer) time to pay might gladly pay much faster if you offer even a small (say, one or two percent) discount. To make your billings look professional, try a Web-based invoicing service such as FreshBooks.com or Bill.com. •
Daniel Kehrer can be reached at
editor@business.com.
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