The process of creating and implementing a customer or salesperson incentive program can seem overwhelming a times. With limited resources, short time lines and high expectations for ROI, we can understand why companies continue to offer the same promotion over and over.
By breaking the process into three distinct parts, you and your administrative team might find that the idea of creating a new promotion is more manageable then it first looks.
Program Development:
v Determine what your objectives are – Why have you decided to do a promotion? What are you hoping to accomplish from it? What are the measurable results you are looking to achieve from your promotion?
v Determine an appropriate reward that will spark the participant’s interest while supporting the program’s objectives.
v Develop rules and guidelines for participants – Ensure that you are very clear about what a participant needs to do to receive the reward.
v Establish a clear communication plan for spreading the word about your promotion – will you post details on your website, through direct mail, point of purchase displays?
Program Operation:
v Launch program enrollment (if necessary for promotion) via secure website or submitted enrollment form.
v Administration of claims processing – review supporting documents and claim forms submitted by participants to determine eligibility. What other data will need to be reviewed?
v Fulfillment of incentives – Create a process for incentive fulfillment. Will payment be made directly to customers via check or debit card, credit to dealer parts/co-op accounts, etc. How often will payments be made – weekly, monthly? Don’t forget about 1099 processing if you mail a check directly to your customers.
v Ensure that you have a way for participants to contact your team with questions regarding the status of their claim – dedicated phone line, an email address or website.
Back-end Reporting:
v Determine the success of the promotion by tracking response rates by location and/or product purchased, % of increase in sales based on offer, etc.
v Ensure that your reporting helps measure the goals and objectives you to set during the program development phase.
v Determine who internally need access to reports – will they be available via on a company intranet or provided at weekly staff meetings.
v Reporting should be done through out a promotion to gauge how well it is going or to determine if extra action needs to be taken to increase the response rates or participation.
With successful preplanning, your team will be able to reap the rewards of a new and exciting promotion that promotes interest in your company/product as well as increases your bottom line.
