Points Program Guide

Incentive Point Program Planning Guide

"When a person is given positive motivation... and challenged to achieve goals... performance is likely to be much greater than without motivation."

Incentive Point Programs

In today's competitive business environment, successful companies recognize that incentives play an important role in helping them reach their objectives. Well-planned and well-executed incentive point programs provide the solutions necessary to effectively meet these objectives. Critical to the success is the implementation of a program that provides exciting "two way" communication, appropriate levels of recognition, and ongoing motivation.

Your Gift is Your ChoiceAn incentive point program can help you achieve your business goals by creating an avenue to motivate a participant base (employees, salespeople, customers, etc.) to meet your objectives (work safer, sell more, buy more).

The Gifts-To-Give Dream Book Catalog is used to entice your participants to work toward your program objectives by displaying a wide selection of awards attainable by performance. Premium (name brand) merchandise is a highly promotable permanent symbol of recognition. Every person has different tastes and interests, so the use of a multi-level catalog provides a diverse selection of awards.

Participants earn points for achieving goals and have the opportunity to do two things with these points: Redeem them for a gift, or save them and work toward a higher level gift. When using a point program, it allows your participants control over their purchases. For example, if a participant has earned 10,000 points, they can redeem one gift at 10,000 points or two gifts at 5,000 points or five gifts at 2,000 points, etc.

Who Uses Incentive Programs?

Gifts-To-Give has run thousands of successful programs with all different size companies and all different size budgets. Using the Gifts-To-Give Dream Book catalog couldn't be easier, and a custom program can be developed and implemented within weeks.

The following are just a few examples of the types of companies who have used Gifts-To-Give Incentive Point Programs:

Electric Company
Employee Safety and Suggestion
Car Dealer
Maintenance and Service Loyalty
Mortgage Brokers
Referral Incentive
Car Manufacturer
Production and Quality
Lumber Yard Contractor
Purchasing Program
Food Broker
Sales Incentive
Glass Manufacturer
Dealer/Loader
Trucking Company
Driver Safety
Retailer

Loyalty Program
Insurance Company
Sales Incentive
Hospitals
Safety and Attendance
Apartment Complex
Referral Leasing Program
Hotels
Frequency Incentive
Nursing Home
Attendance and Safety
Beverage Company
Sales Incentive and Driver Safety
Restaurant
Employee Attendance
Customer Service
Temporary Employee Agencies

Developing Incentive Programs

It is important for you to realize that you do not have to be an expert in designing incentive programs to actually implement one. To get started, answer these six basic questions. Gifts-To-Give professional rule development team will work together with you to make recommendations for your program structure and design.

1. Have you ever run an incentive program before? If yes, what type of program was it? What types of awards were used? Was it successful? What did you like? What didn't you like?

2. Clearly define the objectives of the incentive program. What are you trying to accomplish (employees working safer, salespeople selling more, improving employee attendance, etc.)? Focus on one or two objectives that are most important. The most successful incentive programs are built on clearly defined objectives.

3. Decide who should participate in the program. Whose level of performance are you trying to improve by running an incentive program (full-time employees, part-time employees, company salespeople, broker salespeople, etc.)? Can theparticipant's performance be measured individuals, teams, groups, offices?

4. Establish a time period. Determine how long the incentive program should be run. Sales incentive programs can operate as short as three months to as long as

a year. Most safety incentive programs operate at least one year and can be extended to run an ongoing basis.

5. Determine what you can allocate (in terms of dollars) for meeting an objective, and how often performance is measured. For example, if you are trying to motivate your employees to work safely each month, then the objective is, to work each month without accidents. The budget question then is how much can you give back to the employee, each month, for working without an accident ($10?, $15?, $20?, etc.).

6. Set a schedule to provide ongoing feedback to keep participants apprised of their performance (daily, weekly, monthly). More frequent and consistent feedback will help reinforce desired behaviors.

Establishing Objectives for Incentive Programs

When designing a program remember the "R.A.M." Goal (Reasonable, Attainable, and Measurable). When developing rules for a program you need to decide what a participant has to do to receive an award. This sounds pretty basic, right? Actually, a great deal of thought should be spent on this important element of an incentive program. When creating goals for a program, they should always be: Reasonable (not excessive or too extreme), Attainable (the goal and awards are reachable based on time constraints, demographics, and other variable factors), Measurable (a means of tracking performance so points can be appropriately distributed). "If it's not Measurable it's not Manageable."

Never tell a participant the actual dollars allocated in an awards program... "Mask the Value."

Every incentive program needs a system for translating a person's achievement into awards. Award points make for the easiest, fairest, and most common currency. Points allow you to conceal the actual merchandise costs and elevate the perceived value of the awards. The norm in the incentive industry is one-half cent per point.

The formula for conversion of dollars into points is as follows: The dollar amount divided by the point value = the point amount

Example:

To convert $1.00 to a point amount, using the one-half cent (.005) point value is: $1.00 divided by .005 = 200 points.

If you allocated $1.00 every time a participant met a goal, it would not be very exciting to the participant to be awarded just that $ 1.00. On the other hand, if you were to allocate 200 points, that is more exciting (even though they are both the same amount, the perceived value of 200 points is much greater than that of $1.00).

You can use any point value you wish to convert dollars into points; just use the above formula.

Structuring an Incentive Point Program

When developing a budget you must consider the four essentials: Awards, Communication, Administration, and Promotion.

Awards Budget: Award levels are to be related to the earning power and the tasks required of the participants. For open ended programs, 3-7% of the participant's annual income should be available in awards. The percentage allocated should be based on the length of the program, the participant's income, and on the profit margin in your industry. For closed-ended programs, approximately 85% of the overall program budget should be available for awards.

Open-Ended Budget: Program that sets the award allocation based on a percentage of the goal achieved. (Most Sales Incentives, Purchasing, and Suggestion Programs use open-ended budgets.)

Closed-Ended Budget: Fixed amount of award dollars allocated for the entire program. (Most Safety and Attendance Programs use closed-ended budgets.)

Communication Budget: Each participant should receive their own copy of the awards catalog that is customized with your program theme, company logo, and program rules. Also, the milestones of the program should be communicated to the participant with positive, lively mailers (such as a single level merchandise flyer sheet) and reporting forms (such as status reports, top achievers recognition, and educational reinforcement). Communication of your program will encourage teamwork, competition, and will reinforce the program objectives. All communication should carry the program theme, creating ongoing enthusiasm.

Administration Budget: Data Management and the tracking of the accomplished objectives are crucial to the success of all programs. Reporting and acknowledging progress to the participants in a timely fashion is also a must. This ensures that the participants are recognized for their efforts and are motivated to continue their performance. The administrative process of tracking participant performance and the issuance of points can be handled internally by you, Gifts-To-Give or a combination of the two. Activity Statements, Achievement Point Checks, or Stamps, are the most common vehicles used for recognition of goals achieved. It is recommended to issue points on a monthly basis. Look to the Administration section for more specific details.

Promotion Budget: Promotional Products carrying the program logo and theme should be distributed throughout the program. These items should be useful and serve as a constant reminder of the program objectives. For programs running a year, it is recommended to promote the program quarterly.

Incentive Travel Supplements: To add flexibility and excitement to merchandise incentive programs, Gifts-To-Give offers Individual and Group Travel. Our Incentive Travel Department provides all the services of a comprehensive travel agency. A professional staff of travel consultants and modern computer reservation system allow us to provide the expertise and information to meet your unique needs.

Individual Incentive Travel allows participants the option of using award points they have earned to design the vacation of their dreams. Participants can arrange a customized travel plan with one of our agents, or can select from one of our pre-packaged locations.

Group Incentive Travel enables the top producers or drawing winners to experience a fully tailored group trip. Our travel department is dedicated to organize your entire group travel plans, from transportation to special events. You can select any location worldwide or even a specific sporting event (the World Series, Super Bowl, U.S. Open, etc.).

In order to motivate a person to do something, they must be aware of the benefits to them.

Every participant in an incentive point program should receive their own copy of the award catalog to make sure they are aware of the benefit to them. Incentive programs boil down to that basic philosophy, "What's in it for me?" You need to show your employees or customers that if they meet the company's objectives (working safely, selling more, buying more), they will earn valuable awards. That's why it is so important to distribute a catalog to each participant.

The participant's family and friends play a crucial role in an incentive program.

When the participant in your program takes the award catalog home with them, other members in their family have a chance to look through it. It is very common for a spouse or a child to ask the participant to work toward earning a specific item(s). Now, not only is the company encouraging the participant to perform, but a family member is as well. If a catalog is not distributed to each participant, the likelihood of the family's involvement is greatly reduced, thereby losing an invaluable element to the success of the program.

If you are considering using one catalog per location, or leaving a copy of the catalog with a supervisor for employees to share, we discourage it. Catalogs are not a cost factor but an investment in your program, almost like an advertisement on television. Remember the philosophy is simple, "What's in it for me?" An effective comparison is when a child sees a commercial for a toy they want. The parent says, "If you keep your room clean for a week, I will get it for you." The objective is to keep the room clean, the measurement is one week, and the reward is the toy. Hence, the child keeps the room clean and earns the toy. The incentive for a clean room would not be as effective if the child never saw the commercial. The same applies to the awards catalog.

Incentive Catalog Formats and Pricing

Gifts-To-Give offers its catalog in four different layout format options.

Option 1 - Expanded Format - Master Multi-Level Catalog ($4.00)

The stock 13 level, expanded format Multi-Level Catalog is perfect bound and has all 13 levels bound together to make up one catalog. Each level of merchandise is printed in full color with large pictures and range from four to eight pages per level. By using a multi-level catalog, you can design a catalog that only contains specific levels. The following details the cost for the expanded catalog format utilizing the number of collections indicated.*

# of Levels in Catalog	Quantity 1-249	Quantity 250-749	Quantity 750-1499	Quantity 1500-4999	Quantity 5000+
2	$1.77	$1.71	$1.68	$1.64	$1.62
3	2.05	2.00	1.96	1.93	1.84
4	2.35	2.28	2.25	2.22	2.13
5	2.63	2.58	2.55	2.51	2.35
6	2.92	2.88	2.86	2.80	2.71
7	3.21	3.16	3.12	3.09	3.00
8	3.48	3.45	3.41	3.37	3.29
9	3.55	3.47	3.45	3.38	3.31
10	3.55	3.47	3.45	3.38	3.35
11	3.55	3.47	3.45	3.38	3.35
12	3.55	3.47	3.45	3.38	3.35
13	4.00	3.47	3.45	3.38	3.35

There is a $75.00(1) binding set-up charge. Perfect Binding or Plastic Spiral Binding are the two binding options. When using less than 4 levels, Spiral Binding is the only option. The above pricing does not include printing charges. When designing a custom catalog, we recommend starting with the lowest price collection up to the highest attainable collection.

Option 2 - Condensed Format - Master Multi-Level Catalog ($2.00)

This 18-page condensed format multi-level catalog has all 17 levels saddle-stitched together to make up one catalog. Each level of merchandise is printed in full color, condensed pictures, one two sided page per level. Each level is identified with the collection name printed on the top of each page. The catalog cover used for this version is a white cover stock with "CATALOG OF AWARDS" hot stamped in Gold. This format is ideal for programs that want to offer the entire collection of gifts, but need a less expensive catalog or a lightweight catalog for mailing purposes.

Option 3 - Single Level Sheets ($0.12 per sheet)

Each single level sheet pictures all of the items on one page, two sides. Each sheet is identified by the collection name printed on the top of each page. This format is ideal for program promotional mailings, bulletin boards, and statement stuffers.

Option 4 - Individual Sheet Catalogs

Like the expanded format, by using individual sheets you can design a catalog containing only the specific levels you want. The following details the costs for the condensed sheets bound in a catalog format (two options of binding).

Spiral Bound - Individual Sheet Catalog

# of Levels in Catalog	Quantity 1-249	Quantity 250-749	Quantity 750-1400	Quantity 1500-4900	Quantity 5000+
2	$1.23	$1.18	$1.16	$1.14	$1.11
3	1.34	1.29	1.27	1.25	1.22
4	1.45	1.40	1.38	1.36	1.33
5	1.56	1.51	1.49	1.47	1.44
6	1.68	1.63	1.61	1.69	1.56
7	1.80	1.75	1.72	1.70	1.67
8	1.90	1.85	1.82	1.80	1.77
9	2.00	1.96	1.94	1.92	1.89
10	2.12	2.07	2.05	2.03	2.00
11	2.23	2.18	2.16	2.44	2.11
12	2.34	2.29	2.27	2.25	2.22
13	2.45	2.40	2.38	2.38	2.33
14	2.56	2.51	2.49	2.47	2.44

There is a $ 75.00(1) binding set-up charge for spiral bound catalogs.

Staple Bound - Individual Sheet Catalog

# of Levels in Catalog	Quantity 1-249	Quantity 250-749	Quantity 750-1400	Quantity 1500-4900	Quantity 5000+
2	$0.73	$0.68	$0.66	$0.64	$0.61
3	0.84	0.79	0.77	0.75	0.72
4	0.95	0.90	0.88	0.86	0.83
5	1.06	1.01	0.99	0.97	0.94
6	1.17	1.12	1.10	1.08	1.05
7	1.28	1.23	1.21	1.19	1.16
8	1.40	1.35	1.32	1.30	1.27
9	1.51	1.46	1.43	1.41	1.38
10	1.61	1.56	1.54	1.52	1.49
11	1.72	1.57	1.65	1.63	1.60
12	1.83	1.78	1.76	1.74	1.71
13	1.94	1.89	1.87	1.85	1.82
14	1.94	1.89	1.87	1.85	1.82

There is no set-up charge for staple bound catalogs.

Custom Master Multi-Level Catalog Cover Printing

The cost for catalog cover printing is based on a per color, per side imprint (outside front and back is considered to be one side and inside front and back is considered to be another side). Example: 1/1 means a one-color imprint on the outside and a one-color imprint on the inside. Prices are based on the following restrictions: no screens, no bleeds, no complicated registration. Gifts-To-Give reserves the right to re-quote art prior to production. If any of the above restrictions apply, imprinting costs will be quoted based on the number of colors, complexity of art, etc. If your art has more than 2 colors, we must custom quote after seeing the art.

Colors Per Side

	1/0	2/0	1/1	2/1	2/2
100	$3.62	6.37	5.54	7.97	9.38
200	2.11	3.64	3.11	4.39	5.12
300	1.71	2.72	2.43	3.36	3.67
400	1.52	2.28	2.11	2.68	3.04
500	1.40	2.03	1.89	2.37	2.68
750	1.18	1.63	1.56	1.90	2.12
1000	0.99	1.28	1.28	1.65	1.78
1500	0.88	1.04	1.10	1.35	1.43
2000	0.83	0.95	1.03	1.22	1.28
4000	0.54	0.60	0.66	0.76	0.79
6000	0.51	0.56	0.52	0.70	0.72

Quantities over 6000 or more than two colors require custom quote. * Subject to artwork approval.

On-Line Internet Catalogs

The latest advances in technology have created many new opportunities to communicate with your participants, 24 hours a day, 7 days a week! As a stand alone or in conjunction with a conventional awards catalog, we also have on-line catalogs available which offer participants another means of viewing awards and information on your program. We offer two types of on-line catalogs: Interactive and View Only.

Interactive Award Catalogs

We create a special web site that can be accessed directly over the Internet or linked through your Internet web site of your Intranet. An Interactive Awards Catalog means that a "shopping cart" feature has been attached. Your participants can check and redeem their points directly from the web site. This process helps expedite the award redemption process and keeps your participants interacting with the program. Award items can be viewed by multiple sorting options: by points required, category of product, manufacturer, or specific keyword search. In addition, the Interactive Award Catalog offers capabilities such as the following:

Check Order Status

Read Program Rules

See New Items

Take Knowledge Quizzes

Find Program Updates

View Performance Rankings

Create a Wish List

Administration Access*

Administrative access includes the capabilities for you (the program administrator) to view registration, add/edit participants, add points, view site traffic reports, and much more. To utilize the Interactive Awards Catalog, we will design a database and download your participants' information. Each participant will have a unique ID number that is used for access to the web site, as well as for administrative banking purposes. Each Interactive Awards Catalog must be custom quoted based on the specifics of your program.

A demonstration site can be accessed at http://www.cybergiftworld.com.

View Only Award Catalogs

The Gifts-To-Give Multi-Level Catalog is posted on the worldwide web as a View Only awards catalog. This means that your participants will have access to view all levels of merchandise awards on-line. The catalog was built to list each plateau level with a link to a text description and picture of each product. After viewing the awards, the participants can order their selection(s) by conventional method or if your program is utilizing our Administrative Services, they can order over the phone at the SPIRITT automated telephone award center. We offer access to the View Only catalog at no additional charge.

If you wish to customize the catalog by changing the levels available for viewing or would like to add additional pages such as rules or program themes, we will custom build it for your program at a small additional charge plus a monthly access fee.

The Gifts-To-Give View Only Demonstration Catalog can be accessed at http://www.giftheadquarters.com/cag.

A customized View Only catalog can be viewed at http://www.giftheadquarters.com/customcag

Implementing an Incentive Point Program

Administration Services

Our Administration Services make managing your motivation program and measuring the results simple. Administration Services give you the ability to measure the progress of your participants throughout the program and communicate this information effectively without tying up your internal resources. From simple point activity statements to complex database management systems, our staff will provide outstanding customer service, top-rate technical expertise and a creative approach to communicating progress toward your objectives.

Our extensive range of services includes:

Telephone Administration

Issuance of Point Statements

Enrollment Services

Participant Database

Product Movement

Attendance Computation

Management Reports

Earnings/Tax Computation and Reporting

Most importantly, we perform these services for both large and small size programs. The process for utilizing our Administration Services is turn-key and extremely cost effective.

Here is How it Works…

We will build a program database and load it with each of your participant's information. Then on a structured time cycle we will receive the performance data for each participant. Their individual account will then be updated with their performance activity. At that time a statement can be issued to each participant to communicate and acknowledge their progress. We will monitor their accounts for both the verification and deduction of their points when award redemptions are submitted.

As a Value Added Benefit…

When using our Administration Services your participants will also have access to our telephone award center named SPIRITT (The System for Phone Interactive Rewarding, Incentives, Training, and Tracking).This system streamlines program administration while incorporating an innovative and fun approach to increase participant involvement .... and it's available 24 hours a day, 7 days a week by a toll-free number! By adding your own custom features, SPIRITT is an excellent, cost efficient tool to enhance your incentive program and maximize results.

SPIRITT Telephone System can be programmed to:

Respond to point bank inquiries
Let participants order merchandise or check on product shipment
Promote additional involvement.and reinforce training with product or policy and procedure quizzes
Allow participants to report sales or performance activity
Reward participants with instant win award games
Conduct feedback surveys

When a participant calls the SPIRNT system, they will be greeted by your custom recorded message and easy-to-follow dial prompts. The pre-recorded voice asks the participant which of the menu options they would like to visit. The participant responds by dialing that number. It is that easy.

Hear it for Yourself

A demonstration number is available for you to call and listen to how your program can take advantage of today's technology and truly impress your participants. Call 800-743-5136.

Surveys make for an excellent method to collect feedback, track service or performance levels and identify areas for improvement. The following are a few samples of how our survey system work:

HMO USA Patient Satisfaction Survey - Confidential identity answers to patient related questions. 800-375-5835
USA Mart 360 Degree EWloyee Feedback - Helps employees become better co-workers through self, peer, and supervisory confidential evaluation. 800-375-9268
Any Store USA Customer Satisfaction Survey - Survey to identify retail store customer satisfaction. 800-375-4129
USA Mart Employee Satisfaction Survey - Measures how satisfied employees are with their job and employer. 800-375-9266

Achievement Point Check

The Achievement Point Check is a three-part carbonless form. It is used as the recognition vehicle in point programs. Achievement Point Checks are typically issued to participants on a monthly basis, awarding them for their achievement during that time period. Achievement Point Checks serve as a recognition communication tool, as well as a form of verification of achievement at the time of redemption. When a participant is ready to redeem a gift, he/she will attach the appropriate amount of points to their order form and send them in to Gifts-To-Give.

We will verify that the correct amount of points were submitted prior to processing. If the participant did not include sufficient points for their gift selection, their order and Achievement Point checks will be returned to them along with an explanation letter. If the participant sends in too many points, Gifts-To-Give can send them a change check. For example, if the participant's selection is 4,000 points and they send in a point check worth 5,000 points, we will send the participant a change check for 1,000 points. (We will only issue change checks, if pre-arranged, for remaining points which have a value of $2.50 or greater.)

Evaluating Incentive Point Programs

SAFETY INCENTIVE PROGRAM CASE HISTORY

Participants:

* Plant Employees

Situation Analysis:

Employees were careless with their work habits, resulting in a high number of accidents and absenteeism due to injuries.

Management seldom stressed the importance of safety on the job. Safety was not made a high priority concern of the employees.

Objectives:

To reduce the overall number of Lost Time Accidents and increase the number of accident free days.

To provide a safe place for all employees and reward employees based on their safety habits.

To foster a team spirit for safety among employees.

Recommendations:

Employees were grouped into teams, and were measured on both their own safety performance and their teams. A team structure emphasizes pride of achievement and fosters a competitive spirit.

Each month an employee and their team went without a Lost Time Accident (LTA), each employee would earn award points ... redeemable for valuable merchandise awards.

The following monthly award schedule was established: - Each month an individual worked without an LTA

2,000 points ($10.00) per individual per month

Each month a team worked without an LTA

3,000 points ($15.00) per individual per month

Communications:

To announce the program, each employee received a custom catalog which contained all of our merchandise award levels.

Every quarter a premium/specialty item and a letter from the company was sent to each employee, promoting the safety program.

Each month employees received award point checks. Most employees accumulated their checks in order to have more purchasing power.

Once participants accumulated enough points for the gift they wanted, they filled out an award order form and sent it along with the appropriate amount of points to Gift Headquarters'.

Results:

The accident rate has been reduced by approximately 25%.

Savings from reduced LTA and decreased insurance premiums has exceeded $30,000.

Merchandise redeemed in the program totaled $17,000.

Average award earnings per employee per year is approximately $225. 23

Sales Incentive Program Case History

Participants:

Distributor Salespeople -- Food Service

Situation Analysis:

Client markets food service products to over 600 distributors. These distributors were stocking a new, competitive product. Client felt an aggressive distributor incentive program would effectively combat competition in this category an increase market share.

Objectives:

Increase product sales by 15% over six-month period.

Motivate and encourage distributors to place extra selling emphasis on the client's products.

Further promote and develop long-term distributor loyalty.

Assist in increasing market share and the positive perception of the client.

Recommendations:

A distributor sales incentive program was introduced to reward specific product sales growth and achievements. Each distributor was assigned a monthly product case purchase objective based on a calculation of previous year's purchasing data, monthly seasonality, and case conversion. Distributors earned award points retroactive to first case purchased, once they had exceeded their monthly purchase objective. To get the program off to a good start, a fast start bonus was paid out for case sales accomplishments during the first two months of the program. Distributors received award points and performance statements on a monthly basis.

Communication:

To announce the program, each distributor was given a distributor program guidebook. This guidebook was used by distributors to inform their salespeople about the program. Each distributor also received a customized catalog, which contained over 600 merchandise awards. Promotional copy and rules of the program were imprinted on the cover of the catalog, along with a colorful program theme. Each month, distributors received performance statements highlighting how many award points they earned, as well as how many award points they had used to purchase merchandise items. Distributors also received a quarterly newsletter promoting the program and featuring success stories. Results: Sales revenue increased approximately 57% over the previous year.

Employee Suggestion Program Case History

Participants:

All Company Employees -- Manufacturing

Situation Analysis:

Client needed to develop new leaders from Corporate Headquarters' Department Heads.

Client wanted to increase the awareness of each individual and gain their collective input on corporate revenues and expenses.

Objectives:

Reduce costs and increase revenues.

To develop new leaders by identifying top performing team leaders and team members.

Enhance employee morale and increase employee commitment.

To utilize the knowledge, expertise, insights, and talents of their employees for decision-making and problem-solving.

Recommendations:

Developed and implemented an all-employee suggestion program. Created eight-member teams, with each team member coming from the same department. Team leaders were assigned to motivate fellow team members to generate suggestions. Advisors provided feasibility about specific financial information. Review committee approved/disapproved suggestions. Implementation managers were responsible for implementation of approved suggestions. Employees could earn award points worth 20% of one years savings/productivity improvement based on their approved suggestion. Award points were redeemable for valuable merchandise awards.

Communications:

To announce the program, each team leader received a program guide, award catalog, and stickers. Posters were distributed and a video was designed to "kick-off' the program. Every other week, employees received a promotional letter highlighting the program.

Results:

Number of employees enrolled: 306 (95%)

Number of teams: 31

Number of suggestions submitted: 178

Number of suggestions approved: 95 (53%)

Total value of approved suggestions: $1,226,545

Total program expense: $174,946

Program net gain: $1,051,599

Cost of incremental savings: 14.3%

Creative Ideas for Safety and Sales Programs

Safety Program and Sales Programs

Collect the Points - The vast majority of safety programs are run using a point system. This type of program is designed to be long term (a year or more). Some companies award points on a monthly basis others do it quarterly. Whichever way you choose it is important that your participants be kept informed of their point standing. Remember they are working toward a special goal that they have set and need to know how well they are doing.

Caught Doing It Right - This is an interesting twist to a safety program. Catch your people doing the right thing for their own safety and the safety of those around them and give them a reward right on the spot. This reward can be a ticket, make it some bright color so it can be seen by others, that entitles the holder to receive a gift catalog from the safety director or the company president. This not only gives positive reinforcement right on time but it also allows for some management recognition of a good habit. Another plus is that it gets the supervisors into thinking safety.

Safety Games - A lot of companies use some type of safety game. These games usually do not carry a lot of interest with the employees because it is a game of chance that most will never win. There is also a tendency to use inexpensive logo covered merchandise that most employees have no interest in and already have three. Or it is one big prize that only one person will win. These games can be brought to life and interest exploded with the use of gift catalogs as the prize. With a gift catalog the winner gets to choose the gift that is really wanted. It is also a great idea to have multiple winners and have enough prizes so that everyone can be a winner sooner or later.

Zero Lost Time - If your company goal is to reduce lost time accidents then a company wide award is used to reward all if the goal is achieved. While this is a nice idea all it takes is one person to mess up and your whole program is shot. Rather than an all or nothing approach a gradation of awards may be more effective. If you take into consideration what a year of no lost time accidents can save your company, the award should be considerable. Then if an accident does occur an award of lesser value would be awarded. The award would continue to be reduced with each accident until an unacceptable level is reached where no award is given. With this system you will still have a program and maintain interest for the duration of the year.

Team Work - Sometimes a lot can be achieved with team work. A company will split the entire work force into teams. Each team has a field worker, plant worker and office personnel. Each team has the same number of people and the split is even. The object of this program is to not have any lost time accidents on your team. If the team went accident free for a month each member receives 20 personal points plus 10 extra team points. If there was a lost time accident with a team member, the team lost the 10 extra team points, the person who had the accident lost his 20 personal points but the rest of the team members still receive their 20 personal points. This type of program has proven to be very effective.

Sales Incentive Ideas

Meet the Goal - As a general rule, sales incentive programs tend to be "You meet our goal and you get this" type of program. They do work and have worked well for years. The major problem with this type of program is the reward must be something that your sales staff really wants. If the reward is something that is not needed or will cost money if they win, the program will not be successful. An example of a reward that costs money if you win would be a trip. On any type of trip there are always side expenses and tips that have to be paid. There is also the loss of sales when you are on the trip. Gift certificates are the same thing. You always want more than the gift certificate will get you so you pay the extra cash.

Sales Closers - Door Openers - A lot of times a little gift for buying right now will really improve your overall sales performance. Or a gift for letting me show you our product can really open the door. Here the secret to success is to be able to offer what the person really wants and has a high perceived value. If you use calculators or alarm clocks or maybe golf balls as your incentive item you will only attract the people who want or need these items. That usually is about 3 out of a 100. On the other hand, if you can let then choose from over 50 different items, your chances of offering something that they want are about 90%. Plus you do not have your capital tied up with all the gift items that you bought in bulk. A gift catalog is really hard to beat as a sales closer.

The Test Drive - A lot of cars, boats, planes are sold with a test drive. It is during the test drive that a person takes personal ownership over the vehicle. Once this has happened, the sale is more than halfway done. What you need is a compelling reason for the person to come into your store for that test drive. The use of a gift for taking a test drive is a time proven winner. It can even be made a greater winner if you can advertise 50 different gift ideas that people really want or would enjoy. Here again with a gift catalog you have the wide scope of gift selections without the up front expenses.

Customer Loyalty - It is said that a loyal customer can be a real business asset. The cost of getting new customers is always raising. Why not work on keeping the customers you already have. People would rather do business with someone they already know and trust. Many times a gift to a good customer lets them know that you think of them as a friend not just another sale. By using merchandise as a gift you are remembered each time they use the item. People already know who sent them a useful item and they remember even more if they got to select the item they wanted through the use of a gift catalog.