Packable: Hummer
folding bicycle
When meeting planners
think about incentives, the tendency is to think travel. An
unforgettable trip with the camaraderie of co-workers certainly can
be the ultimate prize for outstanding performance -- but not
necessarily.
“For a salesperson on the road 200 days
a year, another trip might not be the most desirable reward,” says
Karen Renk, CAE, executive director of the Incentive Marketing
Association, based in Naperville, Ill.
As an alternative to travel, it’s worth
considering a category of incentives that is much simpler to
orchestrate and can be just as motivating: merchandise.
In the following pages, Renk and other
incentive specialists answer common questions about such
rewards.
Still hot: iPods and
accessories
Q: How do we select a gifting
company?
A: First, say experts,
figure out how much service the program will require. If you only
need to buy 500 of an item, go through an award-fulfillment
company, such as Maryland Heights, Mo.-based Incentive Concepts,
which acts as a manufacturer’s representative for iPods, Bose
electronics and various brands of furniture, among other products.
A similar company is Nashville-based Textile.com, which specializes
in high-end clothing lines and leather products. These vendors help
planners find the ideal gifts at a price marginally lower than
retail.
If the entire program needs to be
outsourced, rely on the personnel and expertise of a full-service
incentive or performance improvement company. Such a supplier will
design and implement a program from scratch and handle the
administrative headaches most people don’t have time for. (For more
on this topic, visit the Incentive Marketing Association’s website,
www.incentivemarketing.org, and download the white
paper, “Choosing a Performance Improvement Company to Meet Your
Company’s Needs.”)
To decide between firms that offer
similar levels of service, here are a few suggestions beyond simply
getting references.
* Vet the company
through Dun and Bradstreet to find out how long it has been in
business and whether it’s financially solvent, advises Jim Purdy,
the Homosassa, Fla.-based director of product strategy and
development for Rosemont, Ill.-based Marketing Innovators.
* Check to see if the
supplier is a member of the Incentive Marketing Association. If
representatives have earned the CPIM (Certified Professional of
Incentive Management) certification, all the better, says Michelle
Smith, CPIM, vice president, business development for the Salt Lake
City-based O.C. Tanner.
* Look for a supplier
that is award-neutral. “You want someone who’s not going to have a
bias,” says Smith. “If I sell only merchandise, I’m going to tell
you that merchandise is the best idea for you. But if I sell
everything, I can come from a position of complete neutrality.”
The Celestron VistaPix
is a binocular, a digital
camera and a radio.
Q: What should we
spend?
A: “Make sure they’re
not getting a trip to London for bringing doughnuts in, and
likewise, that they’re not getting a cup of coffee for exceeding
their sales revenues by 25 percent,” says Smith. As a rule, she
notes, awards should total up to 5 percent of salary for sales
incentives, and from 1 to 3 percent for other incentive
programs.
Q: How can we predict what
employees want?
A: There are three
options. The first is simply to ask them. If that’s not feasible,
find an expert who studies the preferences of various demographics.
Generally, full-service incentive firms will be knowledgeable in
this area. A third option is to provide a catalog of gifts, which
incentive and fulfillment companies also offer, and let winners
make their own selections.
GRAND REWARDS
Following are a few best-selling items from various gifting companies.
Brookstone: PictureBook Digital Photo Album ($500); SoundShield 250 Compact Headphones ($150); Connoisseur’s Wine Opener ($60). (800) 964-4387;
www.brookstone.com/corporatesalesGodiva: Truffle Box (36 pieces, $60); Platinum Collection Box (30 pieces, $44); One-Pound Gold Ballotin ($36). (800) 946-3482;
www.godiva.comRymax Marketing Services Inc.: Bow-flex Motivator 2 Home Gym ($849); Gucci Twirl Watch (pictured above; $795); Inter-active Health iJoy Massage Chair ($699); iRobot Scooba Floor Washing Robot ($460); Celestron VistaPix Binocular, Digital Camera and Radio ($338). (800) 379-8073;
www.rymaxinc.comTextile.com: Colonel Littleton Saddlebag Briefcase ($393); Colonel Littleton Leather Portfolio ($84). (877) 255-2554;
www.textile.comTumi: Deluxe Computer Portfolio Brief ($225); Modernist Ultimate Travel Organizer ($125). (413) 567-1567;
www.tumispecialmarkets.com -- J.V.
Goodbye lint: The
Oreck Fabric Shaver
Q: What gifts are hot
now?
A: That depends on
who’s on the receiving end, but here are some suggestions.
From Barry Hana, vice president of
sales and marketing for Maryland Heights, Mo.-based Incentive
Concepts:
* Gifts that can be useful during an
incentive trip; for example, an Oreck Fabric Shaver (removes pills
and lint from fabric) or Bose QuietComfort 2 Acoustic Noise
Cancelling Headphones (great for listening to music on the
plane);
* ProScan receivers, for listening to
pit crew or drivers at NASCAR races;
* Montague makes Hummer-branded folding
bicycles, which can be packed inside the car to prevent theft.
From Michelle Smith:
* Consumer electronics, such as iPods,
flat-screen TVs, TiVo subscriptions, XM satellite receivers,
digital cameras and watches;
* Experiential awards, such as flying
in a fighter jet (with a pilot), driving a Formula One race car,
cooking with a famous chef or, believe it or not, training in
covert operations with the military.
Give it Tumi:
Generation 4 FXT
Ballistic Wheeled
22-inch Expandable
Frequent Traveler,
by Tumi
From Larisa Mendenhall, director of
individual awards for West Des Moines, Iowa-based ITAGroup:
* Luggage or leather products. “Go for
high-end brands -- Tumi, Hartmann -- names that connote, ‘I’ve made
it,’ ” she says.
Enjoy the silence:
Bose QuietComfort 2
Noise Cancelling Headphones
From Jim Purdy:
* Gift cards, especially for items such
as electronics, restaurants, movies, music, home improvement,
sporting goods and apparel.
Q: Should we offer a choice of
two or three items, or present the entire catalog?
A: A catalog offers
the most choice, but it might also contain items out of the price
range of the incentive. On the other hand, a customized brochure
costs money to produce. Catalogs are generally the better choice
when the employee demographics are very varied.
Q: Is clothing a good
idea?
A: Clothing can be a
difficult gift, according to Textile.com brand manager Kevin
Hennessy. “With a leather item, that’s pretty simple,” he says.
“You give that item out to 300 people. To do apparel, however, you
have to know everybody’s size.” Yet, he adds, apparel is often used
as an add-on for an incentive trip or event.
Q: When would a gift card be
better than a gift?
A: Karen Renk of the
IMA says the decision shouldn’t always come down to cost. If the
group’s demographics are varied, a gift card might be the simplest
choice.
“If you’re dealing with top sales
performers and you want something customized to what they perceive
to be valuable, a several-thousand-dollar gift card to The Sharper
Image might be just the ticket,” Renk says.
In addition, gift cards are useful as
communication tools. A program might be announced with a gift card
to capture employees’ attention, given midway through the program
as a reminder or distributed for spot recognition of specific
achievements.
GOODS TO GO
A simple book can make a lovely souvenir.Incentives don’t have to be either merchandise or travel; they can be both. Here are a few ways in which companies can pair the two.
Ship it home. A client of Maryland Heights, Mo.-based Incentive Concepts gave incentive trip winners notice of a Bose Wave Music System worth $500 that had been sent to their houses.
Give a serial gift.Mike Landry, national sales manager for upscale luggage-maker Tumi, based in South Plainfield, N.J., suggests giving one piece of luggage before each award trip. Start with a 22-inch rolling bag, then give a garment bag, perhaps followed by a wheeled duffel. The goal is to get the set.
Look within the resort.Many properties have retail outlets. For example, the Breakers in Palm Beach, Fla., has eight boutiques on site and offers a number of gifts specific to the resort, including a book about the resort’s history and a music box.
Offer something symbolic.For the Pepsi Bottling Group, Salt Lake City-based O.C. Tanner designed a crystal bottle as well as cuff links in the shape of bottle caps. While inexpensive, the items were valued within the company culture. -- J.V.
Q: Is cash ever an
appropriate gift?
A: Cash can be the
best kind of incentive gift to give, but only in rare instances,
says Purdy. “In the case of a company that has a high turnover and
the target audience you’re going after is low-income, cash can make
a difference in their lives and be very motivating,” he says.
If employees earn more than about
$40,000 per year, though, cash incentives are not a wise choice,
says Karen Renk. Recipients will not derive the same feeling of
reward from a cash gift, they won’t -remember what they did with
the money, and they will consider the cash part of their salary,
rather than an award they earned through stellar performance.
Q: What gifts should be
avoided?
A: Renk recalls a
story in which a boss wanted to reward an employee for 20 years of
service and gave her a mink coat. Her unhappy response: “I’ve
worked with you for 20 years, and you didn’t notice that I don’t
eat meat and I don’t wear fur!”
Michelle Smith notes other items to be
cautious about giving:
* Knife sets and clocks (they are
inappropriate for some Asian cultures);
* Something outrageously expensive, as
it might be construed as a bribe;
* Meat, especially pork (such as a
Christmas ham);
* Chocolate or sweets to someone who
might be dieting or diabetic;
* Nuts and fruits, because of possible
allergies;
* Something that might be considered
too personal, such as a Victoria’s Secret gift card.
Q: When should gifts be
logoed?
A: A good rule of
thumb is to ask, “Does the logo really add value to the item?”
suggests Michelle Smith. Another rule of thumb: The more expensive
the item, the less likely a logo will be warranted. If the company
wants the logo, try engraving the back or inside of the item.
Q: How should gifts be
presented?
A: “Too often, the
winner comes in one morning and there’s a box on his desk, or the
boss walks by and tosses it into his cube on the way to getting
coffee,” says Smith. A better alternative is a public presentation
involving company executives, which will allow the opportunity to
reiterate what the ideal behaviors are. The ceremony should be held
as soon as possible after the winners have achieved their goals. If
the program isn’t large enough to merit a ceremony, then a
companywide e-mail can suffice.
But know your recipients, Smith
cautions: “Some people might actually be mortified by a public
presentation. It might be more meaningful for the manager to go
over to the employee’s cubicle and thank him privately.”
Q: Can gifts be redeemed
online?
A: Purdy sees the
gifting industry moving online in the future. With online programs,
winners are able to redeem their awards at any hour. In-person
recognition always will be important, of course, but the logistics
of bestowing rewards can be greatly simplified using the
Internet.