Goal Setting Will Drive Your Incentive Program…
Or Send It Off The Cliff.

Is your incentive program in the fast lane to success or about to jump the guardrails and crash in a ball of flames? Regardless of your answer, the reason for either scenario can most likely be traced back to the early stages of the program when the goals were set. Goals establish the road map by which your program stays the course to reach the end you desire, sets your target audience adrift or leave them stranded.

Setting the right goals starts with understanding what the organization’s goals are. Generally the goals fall into two categories, long term goals and short term goals. When you meet with your client you may discuss goals and he/she may present a laundry list of objectives that need to be achieved. More than likely these can be easily divided into short-term and long-term goals.

Long-term goals
Long-term goals are core benchmarks for success such as increase all sales, reduce costs, increase market share.

Short-term goals
Short-term goals define the strategies around which an incentive program is developed. Examples of short-term goals include increase sales of product x by 10%, increase product distribution in 10 markets, sell x thousand cases by July 31st.

The next important consideration in goal setting is to make sure that the goals are measurable, realistic, and attainable.

Goals Must Be Measurable
In order to reward participants for achievement, a goal must be measurable. This may seem obvious. However, too many overly optimistic sales managers have signed off on a program only to find out that their operations or computer staff can’t break out the information required to measure against goal. If you don’t find out that information can’t be obtained until after the program is launched, you are looking at a potential logistics and
performance-inhibiting disaster.

Goals Must Be Attainable
One of the worst things you can do is present program participants an objective they can’t achieve. The problem is, participants will start out enthusiastic and energized, then they will see how little progress they gain toward achieving goal, lose interest and fail to go that extra mile of effort that incentive programs are designed to produce.
The result—no goal achievers, no rewards and no success.

Unattainable goals are often the result of using an across-the-board percent increase target. Here is an example:

The goal is to increase sale by 10%. The top volume sellers now have to add 10% more volume on to what is already a significant number. Those who produced at the lower end of the volume scale also must increase volume by 10%. It is most likely easier for them to attain the goal than the top producers. What you risk is alienating your best sellers by giving them a goal they can’t attain. The best way to set goals is by individual. If this is not possible, than break the participants into groups based on volume and assign goals by volume group. This will help you avoid setting unattainable objectives.

Goals Must Be Realistic.
Worse than being unattainable, unrealistic goals leave you dead at the starting line. When participants are presented with an objective, they will evaluate it and compare it to their own past performance and the state of the marketplace. Most will be able to easily determine whether or not a goal is realistic. If they decide it is unrealistic, then they will have no interest in actively participating in the program.

An example of an unrealistic goal is when a participant is selling a product that has been experiencing an annual sales decline of 1-2% due to market penetration and product maturity. A realistic goal would be to achieve a 1-2% increase or even maintain the same level of sales. However, if participants are presented with a goal of attaining a 5-10% increase they see no chance of hitting the number and will disengage from the program.

The final important criteria regarding goal-setting is that goals should be kept to a minimum. The rule of thumb is no more than two or three. Any more than that and the program will be too complex or cumbersome. Participants will not be able to easily comprehend what they need to do to earn awards and again, fail to generate any connection to or enthusiasm for the program.

Challenge Your Clients Goals If You Think They Won’t Work
As you are mapping out an incentive strategy, be sensitive to these goal-setting criteria. If you truly consider yourself a solutions provider to your clients, then you owe it to them to present the risks they face if the goals they set are inconsistent with what you believe is needed to make the program work. Challenge them and present the scenarios described above. At the very least you will have done your due diligence. If they stand firm and the program gets into trouble, you will be in a better position to again revisit the goals and make adjustments to get the program back on track.

Proper goal setting is one of the most important factors to running a successful program and keeping it on track. In other words, if rewards fuel the program, the goals are the tires and you know what happens when you blow a tire.

Is Your Incentive Program Yesterday’s News?
Has your incentive program been forgotten by the very individual to whom it is being directed? Perhaps you need to reexamine how the program was launched and how it’s being promoted. It’s NEVER too late to communicate.

A good communication campaign can be the lifeblood of an incentive program. Far too often a program is launched and forgotten. Well, at least until some Senior Vice President is looking at the results and is wondering what happened. Every incentive program, no matter how long, should have multiple contacts with the individuals the program is designed to motivate. A month-long program should have at least two follow-ups. A three-month program should have no less than four to six additional points of contact. A six-month or annual program should have at least a monthly follow-up communication plan. Does that mean you send a letter or mailer every month? No, there are many ways to communicate that will serve to inspire, inform and motivate program participants. Here are a few suggestions.

Mailers
Create and print a series of two or four color mailers. Use these to communicate award opportunities, reinforce program goals or remind participants of important program benchmarks or deadlines. To keep these cost-effective, you can print shells all at one time and then laser print or use Kinkos to add time-sensitive copy as the program progresses.

Newsletter
Newsletters are one of the most effective ways to communicate with participants. You can provide program updates, highlight awards or award categories, promote program successes, encourage action where the program is moving slow and you can even include sales tips and features/benefit information regarding those products/services that are part of the program. You would most likely use a newsletter for programs that exceed six months in length.

Postcards
Postcards are a cost-effective way to quickly bring the program back into focus. Postcards are a great way to feature awards, sweepstakes winners as well as remind participants of the goals they must achieve. You can produce custom postcards or order preprinted postcards available through direct mail companies like Paper Direct.

Website
If your incentive program features online awards and award redemption it should also be used as a way to communicate with your participants. Additional pages can cost-effectively be added to most websites (this is true of www.awardlink.com.) In addition to a welcome page you should consider some of the following options:

• Program updates page featuring news, progress and important program reminders.
• Management Letter reinforcing management’s commitment to the program and to everyone’s success. This can be updated every few months to further emphasize commitment and to communicate positive progress.
• Feature awards page highlighting selected merchandise from the online collection. This page could include an award goal tally sheet where participants could list their top five award choices and the level of performance they need to achieve it.
• Special Bonus Page presenting special program bonus promotions like fast start awards, monthly top performer contests, special performance challenges and sweepstakes.

The Internet is one of the most powerful and valuable tools for implementing and managing an incentive program and you owe it to yourself and program participants to maximize its value.

3-dimensional mailer
Nothing has proven to command more attention than receiving a package in the mail. That is what a 3-D mailing is about. It doesn’t matter so much what you send. It’s the impact and interest you get when it arrives that counts. 3-D mailers are most cost-effective when you have a small participant base, sometimes even more so than a printed piece. The only major rule of thumb is to tie the item you send into the program theme or the goals of the program. Also include a note or buck slip with a creative and catchy headline. Your package will get the attention but how it creatively relates to the program and is packaged can significantly add to the retention value.

Letters and Fax
The tried and true letter or fax message is still effective and should be used to fill in the communication gaps between the more significant elements in your communication plan such as a newsletter or 3-d mailers. Both letters and faxes are a great way to communicate timely information such as performance against goal, stacked rankings or sweepstakes winners.

Monthly Progress or Earnings Statements
When mapping out your communications schedule, don’t overlook monthly performance statements. Although usually considered part of the administrative package, it is one of the more valuable communication vehicles your program may have. If you are running a bank account program which includes a monthly statement, there is space on the statement to include a message to the participant. This is a great place to announce
sweepstakes winners or remind participants of the goal they are striving to achieve or communicate other important program updates or deadlines.

Award Issuance
The act of sending points or award checks to participants is a significant part of an overall communication plan. Think about it. Is there any better message to convey than “you’re a winner; here is your reward.”

Here is a sample communications calendar for a six month program:

 

Including the monthly statement, this plan communicates with participants once every two weeks and in several varying modes of communications. You could easily substitute a fax or letter for any of the elements.

Now you are thinking, “what about the cost?” First of all, put the term cost out of your mind communications IS AN INVESTMENT! The communications investment should account for no more than 5-10% of the total program budget. So if you have $100,000 allocated for the incentive program, plan to invest $5,000 - $10,000 to communicate and promote the program. The amount you spend will vary based on the size of your audience, which communication elements you choose, and how elaborate or simple the communication elements are.

I’ve often heard it said that communications was the insurance policy covering the success of the program. If you want to minimize the risk of a program breakdown
or failure, then you need to make the investment in communications. You will see the benefit for every dollar you commit.

What’s New At PFI?

There is a lot going on at PFI this fall. New products, better services, catalog updates etc. Here is a brief review of what you will be seeing in the near future.

Rock and Run Through The Warehouse DVD is Available
Hopefully you’ve heard about PFI’s new “Rock ‘n Run The Warehouse.” It’s a merchandise award “grab fest” right in the PFI warehouse in Cleveland, Ohio. 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.

What’s new, however, is that PFI has sold a “Run” program and now has a DVD recording of the Rock ‘n Run event. You will be able to see first hand how this once-in-a-lifetime event comes alive with the banners, balloons, music and cheers of enthusiastic onlookers. You will see the excitement and feel the emotion and adrenaline of award winning runners as they race the course and load their carts with awards. To receive a copy of the DVD, contact the sales department at www.sales@spihq.

New Plateau Catalog Series
The PFI plateau award collection is in the final stages of being updated for 2004-2005. This update will include the popular mini-modules including the Mini-Max brochure,
Jr. Mini Module and Sr. Mini Module. The new collection will feature a new graphic design and, most important of all, new and even more popular brand name merchandise selections.

Reflections
The Reflections service award and gift collection are in the process of being updated. To date, levels 1-6 have been refreshed with new merchandise and even better brands. Another important addition is the level number has been added to all sheets. Levels 7-13 will be updated by the end of the year.

Note: Don’t forget that Reflections Gift Collections and Plateau Award books make a perfect award solution for a Holiday Gift Program. The Plateau Collection includes a holiday cover, which can also be used as a wrap for the Reflections Sheets. Time is running out to sell 2003 Holiday gift programs.

New Deluxe Catalog
The annual updating of the Deluxe Catalog of Awards is also underway. As in the past, a fresh new look, new covers and new award selections will keep this book positioned as a top-of-line incentive award catalog. The 2004 Deluxe Catalog should be available sometime in December.

Safety Excellence
Safety Excellence, an updated and improved variation of Play-it-Safe, will soon be available. The final pieces will soon be off the presses.

PFI On The Road
PFI has been on the road this year visiting more marketing partners and attending more trade shows than ever before. As a marketing partner, you are our customer and our
number one priority. We understand the value of meeting with you face-to-face as often as time allows. This year Mary Ann Comotto, President, Joy Smith, V.P. of Sales, Jim Kapcar, Regional V.P. Sales, and Sue Niebuhr, Director of Sales all hit the flyways, highways and byways to visit and meet with hundreds of our partners either at trade shows or by visiting your offices. We strongly believe that hearing about your challenges, opportunities, goals and needs directly from you will allow us to better service and support your efforts to grow your merchandise incentive business.
 

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