Alot has
been written in this newsletter about safety incentive programs and
their value. But enough can’t be written about the ROI potential they
truly yield.
The
financial benefits of implementing a solid safety program that focuses
on safe working habits (vs. reducing workers compensation costs or
avoiding OSHA penalties) are more than worth the time, money and
effort. According to recent findings in a study conducted by
Governance Metrics International, companies that ranked high in health
and safety performance also outperformed their competitors in return
on assets, return on investment and return on capital. Equally
noteworthy is the fact that public companies with solid safety records
also seem to experience superior stock price performance.
Next time
you’re presenting safety program concepts to your clients, remind them
that a good safety program starts with prevention of the accident or
elimination of unsafe work habits. Also, remember that safety programs
that present large value awards for accident-free quarters, or ones
that reward everyone for an accident-free period can promote
injury-hiding and raise red flags with OSHA.
Merchandise
awards continue to be one of the most popular reward options presented
to incentive program participants. With our eight printed award
catalogs and an impressive online award selection, PFI leads the
industry in the packaging and presenting of merchandise award
redemption vehicles. But there is more to merchandise incentives than
catalogs. Here are some additional ideas for ways you can work
merchandise into your next incentive program:
Custom Selections
Incentive catalogs by design present "general" award
selections. But sometimes general is not enough. To really get a
motivational bang, a custom selection may be your best option. This is
particularly true when you have good demographic information about
your participant audience and can confidently present a selection that
will have a greater appeal than a general award selection. For
example, if you know your audience is young adults (like in fast food
crew incentives), you will get a greater motivational impact by
presenting them with CD selections, stereos, MP3 players, computers,
games and sports equipment than a general selection that includes
house wares, jewelry, apparel and home and garden products. The same
would be true if you know that the majority of your audience is into
exercise and fitness.
Another
reason to introduce a custom selection may be to accommodate a
client’s concern about participants being presented the competitor’s
products as an award.
Themed
Merchandise Promotion
Get creative when presenting merchandise. Build a custom
selection around a theme such as music, movies, or sports. Here are a
few examples:
Theme:
Rock, Roll and Ride To Rewards
Merchandise Selections: CDs, personal stereos, speaker systems,
personal CD players etc.
Theme:
In The Zone
Merchandise Selections: Baseballs/bats, basketballs, gym bags,
weight training equipment, sports memorabilia
Theme:
Swing Into Action:
Merchandise Selections: Golf clubs/bags/carts, golf balls,
putting machines, gloves, golf apparel
Bonus
Promotions
Merchandise can be introduced into an incentive program in the
form of a bonus award in addition to points redeemed for catalog award
selections. For example, you could offer a flat screen TV for a "fast
start" bonus to the first 10 participants to reach a given benchmark.
Quarterly
bonuses for top achievers could be presented as a surround sound
system or Weber grill instead of points.
Overall top
performance could include special award packages like a home theater
system including all audio and video components plus a selection of
DVDs and CDs. You could also put together golf packages including
clubs, bag, balls and a cart.
Merchandise and Communications
It is often said that communications is the "insurance card"
that can secure success for an incentive program. Communication
elements don’t need to be limited to printed or online information.
Use merchandise products like golf balls sent to all participants with
the message: "Drive For The Goal" or "Be On Par For Awards."
Another way
to introduce merchandise into the program communications is by
presenting participants with short quizzes on the rules of the program
or the catalog of awards. You can then offer a sweepstakes prize to a
select number of respondents or you can select a single item like a
calculator to present to everyone who responds.
Rock ’n Run The Warehouse
PFI’s newest merchandise product, a "Rock ’n Run the Warehouse" is
literally a merchandise award "grab fest" run in the PFI warehouse in
Cleveland, Ohio. "Run-Throughs" were extremely popular in the 70s and
80s but have since faded from memory, until now. Partners For
Incentives has raised the banners, set the shelves and is at the
starting line ready to deliver one of the most exciting award events
you can possibly offer incentive program participants. An extensively
promoted, well operated "Rock ’n Run the Warehouse" never fails to
deliver results and is a profitable incentive reward opportunity,
truly a win-win for everybody. "Rock ’n Run the Warehouse" is a
perfect top team or top achievers award.
Don’t
Limit Yourself To A Single Award Vehicle
All the ideas presented above can be included in any
combination IN ADDITION to a catalog. The point is, an award catalog
by itself works great. However, you can dial up the program activity,
enthusiasm and support by creatively introducing additional award
opportunities. The end results will be more revenues for you and, most
important, greater success for your clients.
PFI’s staff
of experienced, professional merchandise buyers can help you source
and fulfill any non-catalog merchandise offering. Take a moment to
review your accounts and see if there is an opportunity to introduce
additional merchandise incentives.
A word about "BREAKAGE"
Ok, so you
say these are great ideas but there’s no budget. Through preplanning
you can set aside program monies to fund some of the options listed
above. Another creative way is to take advantage of "breakage." To
clarify, by breakage I mean the value of the points issued to
participants that are never redeemed. The industry average is
somewhere between 15%-20%. Unless you have a redemption history based
on previous experience it is better to take the more conservative 15%.
So, for a program budgeted at $100,000 in points with a 15% breakage
factor, you would lose $15,000 in revenue. If, however, you used the
$15,000 to implement some of the merchandise promotional
recommendations described above you would not only retain the revenue,
but you will enhance the program and motivate participants to even
greater levels of success.
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