How to Increase Sales With Travel Incentives

Travel incentives have proved to be a powerful tool for increasing sales. Organizations can develop programs aimed at both sales representatives and customers. To provide an effective Return On Investment, travel incentives must meet sales objectives more effectively than other techniques. Launch, communication and program management play an important part in ensuring the success of a travel incentive program.

Instructions

Achieving success with travel

1

Review travel incentive research. The Incentive Research Foundation found that 92 percent of employees surveyed claimed to have achieved their goals because of incentives, while 57 percent of organizations reported that they had met or surpassed corporate objectives. The Incentive Federation reported that 85 percent of organizations surveyed treated travel incentives as an investment, rather than a cost. More than half had increased their travel incentive budgets. A travel reward is different from a cash bonus or a promotion because it is an anticipated experience and may be more memorable. A travel reward may result in a change in behavior.

2

Establish clear objectives for your program. Use the program to incentivize sales representatives to build sales of a particular product or increase penetration in a specific market sector. Use a customer incentive program to strengthen loyalty at key accounts or win back customers who may be spending more with competitors.

3

Set achievable targets that meet the program objectives. Give customers or sales representatives targets based on percentage improvements over a period of time, rather than absolute figures. The Incentive Research Foundation suggests that long-term incentives produce better results than short programs. Their study found that programs lasting a year showed a 44 percent improvement, compared to a 20 percent improvement for a one-month program.

4

Choose an attractive destination that will motivate participants. Develop a creative theme based on the destination and use it in all program communications. Use an event management company or hire an independent organizer to oversee the event on site. Make sure they are qualified and have a record of success.

5

Create high levels of interest from the outset. Host a launch event for your sales force program. Or send special invitations to customers. Excite them with premiums, a video, destination keepsake or other souvenir as a reminder. Provide details of the destination and set out the program requirements. Maintain momentum during the incentive period by telling participants how they are progressing. As the program nears the finish, let participants know what they have to achieve to succeed.

6

Let all participants know the final results. For those who have not qualified for the award, offer a related prize that recognizes their efforts. This will encourage them to participate in any future incentive programs. At the event, celebrate the participants who have achieved the best performance against their targets. Measure the effectiveness of the program against its objectives. Use any areas of under-performance to fine tune future travel incentive programs. Make plenty of notes about what worked --and what didn't.