Incentives
- Just Rewards
Sales & Marketing Management
Magazine, May 1999
Just
Rewards…Are
salespeople bored with your incentive programs? Then it’s
time to get creative. Here’s how four innovative companies
inspire strong performances.
Chris
Dillard, National Account rep for Texas based Monarch Business
Systems, has earned numerous cash rewards, and though the
extra chunk of change may be nice, it’s not the only prize
he seeks. Dillard would rather travel, knowing that Monarch’s
incentive trips are one-of-a-kind experiences that have taken
him from a private mansion in Mexico to an extravagant weekend
in New York. “For the money spent on some trips I’ve been
on, you just can’t beat it,” he says. “It makes me focused
to go out and win.”
Manager
who are constantly dangling boring beach photos or brochures
of TV sets in front of their salespeople, hoping these prizes
will inspire them to crush quotas, should consider pumping
some creativity into their incentives programs. In today’s
tight labor market, where a good salesperson has many employment
options, a gold watch is about as rewarding a gold star, and
if executives don’t think of something better, it’s guaranteed
their competitors will.
Many
experts and salespeople agree that cash alone isn’t a top
motivator, but an Incentive Federation Survey shows that 63
percent of 968 respondents still use monetary rewards exclusively.
What’s more, says Jim Kouzes, chairman of the Peters Group/Learning
Systems in Palo Alto, California, and coauthor of Encouraging
the Heart: A Leader’s Guide to Rewarding and Recognizing Others,
managers who do run incentive programs often create rewards
that disregard what really encourages people to excel. “Rewards
should be personal, special, and unique to the person who
is receiving them,” he says, “Goals themselves have no impact-people
need feedback.”
What
follows are four companies that have found innovative ways
to motivate top performers. Some plan once-in-a-lifetime trips,
and others believe that making work fun on a daily basis is
incentive enough to boost sales. Their stories show that even
those who can’t spend a fortune can create rich rewards.
The
Jokes On Them
Kevin
Neuse, Former vice president at Monarch Business Systems,
which sells Toshiba copiers, fax machines, and laptop computers,
planned all aspects of a sales incentive trip to New York
last year. Or so he thought at the time.
Other
executives thought it might be amusing, albeit a bit bizarre,
to shake the trip up a bit at Neuse’s expense. The plot unfolded
at the Four Seasons Hotel bar, where the group was meeting
after its flight (on a private Lear jet) from Dallas, where
Monarch is based.
A mystery
woman approached the table, claming she knew Neuse. He couldn’t
remember ever meeting her, though she said they knew each
other well at college. As she got more detailed and specific,
referring to bars and people and even a motorcycle accident
that nobody else knew about, Neuse’s mind was racing, while
the rest of the salespeople watched. “You must remember that
night,” she said, getting increasingly serious and frustrated.
She ended the 20-minute conversation by leaving her phone
number, begging Neuse to call her to talk about her 10-year-old
son (Neuse was 10 years out of college at the time) “I kept
thinking that it was a prank at fist, but she knew such obscure
details,” Neuse said. “ I was sweating bullets-I went back
to my suite and emptied the mini bar. I didn’t know whether
to call her or call my wife.”
What
Neuse and his salespeople thought was going to be a weekend
of Broadway shows, club hopping, and Yankees games was taking
a strange twist. Neuse was hysterical, much to the amusement
of his reps. “He was trying to decided whether he should jump
out the window or call his wife,” recalls Chris Dillard, the
national account rep, who got a laugh out of watching his
boss squirm. That’s when the trip’s organizer, Gregory Patrick,
CEO of Tours of Enchantment, reluctantly let Neuse know it
was all a joke and the woman was a hired actress. Neuse, who
is now vice president of One Source Financial in Austin, Texas,
says he felt relieved, if a bit angry. “ I wasn’t laughing
hard at the time,” he says.
The
element of surprise is what Patrick specializes in at Tours
of Enchantment, based in Houston. The
company organizes events ranging from dinner with powerful
political figures to accommodations in Mick Jagger’s mansion
(Enchantment’s motto: “Our service is limited only by your
imagination”). Incentive trips lasting seven days usually
cost $2,500 to $4,200 per person, Patrick says, adding that
his business has grown an average of 37 percent each year
since 1991. He attributes its growth to a savvier market that’s
finding many incentive programs stagnant. “People are hopping
back and forth from countries in fifteen days,” he says. “They
want to cultural exchanges-anybody can plan a trip, but I
won’t do anything someone else can do.”
For the
rest of Monarch’s trip, the group toured the city in a limo,
taking in the nightlife and eating in such top-tier restaurants
as Tavern on the Green and Vong, where the average meal costs
upward of $50. The crazy antics didn’t end with Neuse either.
One afternoon, when some salespeople were parked in front
of Bloomingdale’s an “armed robber” jumped into the car. “By
that time we pretty much knew it had to be a prank, so we
just started messing with the guy,” Dillard says.
So why
take an otherwise typical trip and turn it into a fiasco?
Wasn’t the first class treatment enough to make it interesting?
Neuse and Dillard agree it wasn’t just another vacation-it
was an experience. “I’ve won a lot of trips and they were
mostly all routine,” says Dillard, one of Monarch’s top reps.
“ I’ve never been to New York that way. When you get back
to the office and you can’t stop talking about it, it pumps
other reps up to want to win the next one. If you take money
versus fun, it doesn’t compare.”
Neuse
believes the more effort a manager can put into an incentive,
the better the results will be in the end. “We still talk
about the trip,” he says. “It kept us on out toes the whole
time, which is a good way to go if you’re in New York.”
Back to Publicity
|
|