Case Study – Providing Sales Incentives
A national home and commercial security system company was looking for an easy-to-manage reward system that would recognize employees that exceeded their sales goal by 20 percent or more each year. However, considering the company had over 600 salespeople across the nation, the incentive program needed to be easy to manage.
Peak Performance helped the company institute a no-cost travel incentive program. The incentive was presented to the sales team each year in February, and each employee was given a goal to reach to qualify for the incentive. If the employee met the goal, he or she was offered an all-expense-paid trip to the destination with a spouse or guest. Examples of destinations include the Venetian Las Vegas, the Atlantis Resort in the Bahamas (Atlantis), the Westin Cabo San Lucas, and Saint Thomas. The sales goal the company set was 120 percent. This goal was on the high side, but it was certainly achievable and not necessarily exclusive, which is critical to the success of the program. If everyone actually hits their 120 percent goal, the profits generated will more than cover any trip incentive costs. Furthermore, those that do not hit the goal mark will still attempt, the resulting sales over their 100% will cover the cost of the winners. Their higher numbers will cover the trip costs of the winners.
Peak Performance provided support during the development and implementation of the sales incentive program. Peak Performance provided research about the destinations to help the company make an appropriate destination choice. The key to the success of the program was choosing destinations that appeal to the largest demographic possible. The more employees that participate, the more excitement that is generated, which in turn produces better contributions by those same employees. Peak also negotiated with hotels and arranged all travel services, including air transportation, airport transfers, promotional items and signage, welcome receptions, special dinner events in each destination, and an awards ceremony to recognize the employees for their achievement.
Peak Performance also helped the company tap vendors and coordinate sponsorships. Vendors are often very eager to contribute to incentive programs. It is an excellent use of their marketing dollars, as it provides a high ROI (return on investment). Through sponsorships, vendors will often cover costs associated with trips, such as special tours, meals, or add-ons. Their sponsorship gets their names in front of the employees that use and sell them and also lets employees know that they appreciate their work.