Reward the Worthy

Salespeople will always respond to incentives. After all, who doesn’t like to be rewarded for extra efforts and good results? So look for the best incentive startegies to wow your team and keep them motivated.

New Incentive Strategies

The incentive consultants at SalesDriver see more companies using incentives for programs not tied directly to revenue targets, according to Sales Vice President Mark Sullivan. “We are starting to see targets set for self-knowledge and what salespeople do to educate themselves in key areas. Companies are building recognition programs based on what additional skills employees obtain.”

Firms reward salespeople for in-house sales training and taking adult education classes outside the company, in public speaking or other sales-related fields. “The recognition could be a tangible reward, or it could be non-tangible,” Sullivan says.

Companies are rewarding team members for achieving team goals. Teams include non-sales staff, for example pre-sales or post-sales support by engineers. “This is not always based on revenue,” Sullivan observes. “It could be for publicizing a win by writing up a case study on how it was done.” These case studies can be posted on Websites, used in marketing materials, or used internally to motivate other teams.

In terms of tangible rewards, there are two new trends. Some companies are starting to give products for pets as rewards. These are special treats, like bowls and pet houses and climbing wheels. They are often designed to match the décor of the family home, pleasing the family as well as the resident hound.

Second, companies now choose elegant furniture to accommodate flat-screen TVs and other high-tech devices. Finely crafted cabinets can conceal sleek TV screens when not in use, and then open at the push of a button to reveal the screen. “These are going to very popular as we move forward,” Sullivan says.

Mary Luckey, director of rewards at Maritz Incentives, calls one new trend in incentives “mass luxury.” But she cautions that rewards must always offer a choice to please the different tastes of Gen-Xers, Gen-Yers, Boomers, and Busters.

Mass luxury does not necessarily mean seven days on an exotic island. It might simply mean a $5 latte with cream for someone who really cares about coffee, or a coffee grinder in silver. Gen-Xers care about their families and may want a home theater system like families in the 1950s sought new dining room sets.

For entertainment, Maritz offers a VIP Concert Experience. Winners get seats in the first 10 rows of a premiere event, a host to greet them, access to green rooms, and a gift from the star. All this special treatment need not cost too much, but it is fun to dream about, an essential incentive goal. Another dream reward is a real toy poodle. “You have to be interviewed by the breeder to get the dog,” Luckey explains. “We got 700 requests in the first week we launched.”

Gen-Y salespeople want to do some good in the world. Luckey recommends incentives that reward winners but also have social value. “You could do a Habitat for Humanity trip, but have winners stay in a really nice hotel.” Maritz offers the Hurricane collection of jewelry designed by Mary Norton, with special insignia indicating that part of the proceeds go to Hurricane Katrina victims.

Once-a-year major vacations that were once popular with older sales organizations tend not to appeal to younger organizations and young people, according to Dianne Durkin, president of Loyalty Factor. “The younger generation is very aggressive, doesn’t want to waste time and is more interested in time off so they can spend it with their families,” Durkin notes. Some reps will want to take just their spouses, but others will want to take the kids along. “They don’t want to bring their kids up the way they were brought up; they want to spend more time with them.”

Just getting an extra day off for a long weekend or being able to leave early to attend a soccer game or ballet performance can also be very rewarding for family-oriented reps, Durkin says.

Gen-Xers and Gen-Yers are also in a learning and growth mode, according to Durkin. “You used to send the top 10 percent of reps off to Bermuda to play golf. Now, they may prefer to go to Chicago to get a little training in and then some time for themselves.” Training has become “the new 401k plan,” Durkin says. It is an investment in financial and personal growth that companies will find themselves obliged to make. Sales reps most desire training in communications, building customer rapport and relationships, and dealing with difficult sales situations.

Like Luckey, Durkin sees time off to do philanthropic work as a great way to reward excellence and retain valued salespeople. “Many employees today want to make a difference in the world. They would like to know they can do it without jeopardizing their careers.”

Smaller merchandise and gift cards can motivate, but only if they are given instantly after the act that triggered them. “People tend not to want to wait for the annual plaque. They would rather get a quick Starbucks card, some meals at McDonald’s for their kids, or American Express points that allow them to pick a prize they want.”

Gift cards and point systems are attractive because high performers can pick prizes that they will use, like TVs and CD systems. Durkin has one client who gave away coolers on wheels, each with a CD player and radio inside. The rep and his entire family could take the gift along with them on trips or picnics. Above all, “don’t wait two months or even a week to reward them.”

Recognition and a thank-you are very important in making any incentive truly motivating. Durkin says you should know ahead of time whether the recipient prefers public recognition or private appreciation. Salespeople tend to be outgoing and like public recognition. But there are differences. “Some sales organizations are not rah-rah, they just want to get it done, make things happen, and improve the bottom line,” Durkin notes. Quiet and private thanks may be more appreciated in these organizations.

Another technique that works with younger sales staff is engaging them in solving business problems. One Loyalty Factor client CEO appointed a team of employees to come up with an incentive proposal. “The younger generation loves to work on teams,” Durkin notes. The CEO was pleasantly surprised at how practical and affordable the incentive team’s proposals turned out to be. “Employees understand business and financial pressures. They enjoy being asked to help come up with a practical solution.”

Exciting Prizes

“Digital cameras are still a very hot item because they keep changing all the time,” says Terry Markwart, director of special markets at Canon USA. “Megapixels used to be 2 to 4 million, and now they are 10 million in a compact digital. There are more features, the screens on the cameras are getting larger, and there are lots of things to make them more fun and interesting.”

Fine digital cameras retail for less than $200 and go on up, with higher quality and more features, to Canon’s very popular Rebel XT, an SLR camera retailing for $899. Grand prizes for annual sales contests can be projectors for home theaters. “It all depends on how much you want to spend,” Markwart says. “And corporate programs do not pay retail.”

Another famous camera maker, Sony, not only has the latest in cutting-edge consumer electronics, it can also help your winners learn to use them. Sony offers free online courses for camera and camcorder recipients. There are courses in Master Shooting Techniques, Unleashing Your Inner Director, Capturing Special Moments in Video, Master Digital Photography, Making a Digital Scrapbook, Shooting and Editing Great Home Videos and, for real beginners, What Do All These Camera Buttons Do?

For less electronic tastes, a Regis Salon gift card is a truly unique offer from the largest salon owner in the world, according to Sales and Marketing Director Kim Sobasky. “It is the only card of its type for health and beauty products that can be redeemed at so many locations,” Sobasky adds. The Regis card is good at about 6,000 locations in the U.S. and Puerto Rico. Regis properties and products cover a wide spectrum of demographics. At the high end, there are Regis salons. For value-conscious shoppers there are Smart Style stores located in Wal-Mart Supercenters. Trade Secret carries 3,000 professional beauty products and has a full salon in each location. “There is something for everyone,” Sobasky emphasizes. “And that is very hard to find in this field.”

Terryberry is now offering a Desktop Milestone Showcase, which allows top reps and sales execs a perfect way to exhibit and protect their valuable emblem awards. Available in three attractive designs, the Desktop Milestone Showcase can make an elegant and understated symbol of achievement for the most valuable members of your sales team.

For a hundred years, Bulova has been making the kind of fine timepieces that many salespeople prize. Movado offers a spare and elegant style of watch, each with the Movado dot, emphasizing the quality that lies underneath. Seiko offers its Sportura line of watches that are both functional and flashy.

For less than $100, Bass Pro Shop can equip your deep sea fishermen with its premium Offshore Angler Ocean Master Casting Reel.

For successful sales strategists who like to plan their next move in their home offices, Crate & Barrel now offers a handsome campaign desk, which looks like one Napoleon might have used, for just $999.

Sharper Image might have just the grand prize for a weary sales winner who needs to relax after a championship year. It is the Ultimate Human Touch Massage Chair, with advanced Human Touch Technology programs for both health and well being, priced at $4,495.

Many firms specialize in a wide variety of merchandise and food prizes that offer the variety necessary to suit the wide tastes of today’s sales force. Pier 1 Imports has 1,100 stores filled with beautiful cabinets, elegant home furnishings, and distinctive imported treasures that can give an international touch to an incentive program. For more domestic appetites, Home Depot offers great deals on appliances such as lights and fans, and has a Garden Club with expert tips and a full line of outdoor power equipment. If you are looking for clothing prizes, TJX sells both apparel and home fashions at its widely available chains, TJMaxx, Marshalls, Winners, HomeGoods, TKMaxx, AJWright, and HomeSense.

For a wide range of choice in consumer electronics, you can hardly do better than Circuit City. The chain offers home theater systems, computers, software, digital cameras, camcorders, cell phones, music, games, and movies.

Williams-Sonoma has some of the finest items for preparing food and drink in your home.

Eddie Bauer offers choices as wide as the great outdoors that is its specialty. There are rugged clothes and boots, solar-powered radios, and fancy binoculars.

One way to give winners choices is with gift cards and certificates. Target gift cards, available for amounts up to $1,000, offer clothes, sporting equipment, toys, and electronics.

Blockbuster Entertainment offers gift cards for videos, movies on DVD, and video games.

Certificates from Best Buy let winners choose desktop, laptop, and notebook computers, cell phones, video games, digital cameras, and high-definition TV sets.

Starbucks Coffee cards are available from $3 to $500, good for coffee, bakery products, espresso makers, drip brewers, and carafes.

Darden Restaurants offers gift cards in amounts from $5 to $250, valid at more than 1,300 Red Lobster, Olive Garden, Bahama Breeze, Smokey Bones Barbeque & Grill, and Seasons 52 restaurants.

Domino’s Pizza corporate gift certificates earn a pizza plus two liters of Coca Cola for just $10.75.

Omaha Steaks Gift Certificates come in both paper and digital forms, valued at $25 to $100, for steaks, hamburgers, pastas, and chops.

Lowe’s Home Improvement has plenty of choice for the rep’s home base. There are sinks and faucets, furniture, fences, and tools for making home improvements. Lowe’s gift cards vary from $5 to $5,000.

L.L. Bean gift certificates can be used to purchase from $5 to $500 worth of outdoor clothing, luggage, and other equipment for leisure and camping.

If you are still looking for more choice, you can try the multi-brand versions of certificates and gift cards. For example, GiftCertificates.com has its own universal gift certificate, good at hundreds of famous stores. American Express Incentive Services offers distinctive Gift Cheques, in denominations of $10, $25, $50, or $100. There are also Amex Reward Cards from $25 to $500. – Henry Canaday