Are you a manufacturer or a distributor? Are you struggling to keep customers loyal? Do you want to attract #customerloyalty. Our incentive and or reward ideas are custom built to help you to grow your company.
Travel, merchandise, points, recognition all designed to help you grow
2. Business Purpose
• Increase store traffic/generate face to face meetings
• Increase purchase frequency
• Promote goodwill of your company
• Promote products
• Motivate managers or employees to higher levels of
performance
3. Expertise
• Sales Performance Programs
• Referral Marketing Programs
• Product Promotions
• Retail or Website Traffic
Promotions
• Loyalty Programs
• Social Media Promotions
• Employee Recognition and
Safety
• Trade Show Promotions
• Website/Internet Promotions
• In-On-Near Pack Promotions
• Sweepstakes and Game
Promotions
• Character Marketing
Promotions
• Mobile Promotions
4. Services
• Full Service Sales Promotion
Agency
• Creative Development
• Copy Writing
• Graphics Design
• Legal
• Print Production
• ROI Analysis
• Promotional Products/
Apparel
• Awards, Trips and Premiums
• Fulfillment
• Administration
• Measurement/Tracking
5. Partial List Industries
• Banking/Credit Union
• Financial Services
• Sports Teams
• C Store
• Grocery
• Quick Serve Restaurant
• Non Profit
• Mass Retailer
• Technology
• Manufacturing
• Distribution
• Education
• Food Service
• Vending
6. It Pays to Promote during a
Recessionary Period
7. It Pays to Promote during a
Recessionary Period
In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies
from 1980-1985. The results showed that business-to-business Firms that
Maintained or Increased their Promotion Expenditures during the
1981-1982 recession Averaged Significantly Higher Sales growth, both
during the recession and for the following three years, than those that
eliminated or decreased promoting. By 1985, sales of companies that were
Aggressive Recession Promoting had Risen 256% over those that didn't
keep up their promoting.
In addition, a series of six studies conducted by the research firm of Meldrum &
Fewsmith showed conclusively that Promotion Aggressively during
Recessions not only Increases Sales but Increases Profits. This fact has
held true for all post-World War II recessions studied by The American Business
Press starting in 1949.
8. Promotion is Less Risky than
Discounts, Rebates or Free Goods
If Your Present Gross Margin Is:
5% 10% 15% 20% 25% 30% 40%
Cut
Price
You Need an Increase in Unit Sales Of …
1% 25.0% 11.1% 7.1% 5.3% 4.2% 3.4% 2.6%
5% 100.0% 50.0% 33.3% 25.0% 20.0% 14.3%
10% 200.0% 100.0% 66.7% 50.0% 33.3%
15% 300.0% 150.0% 100.0% 60.0%
20% 316.7% 172.7% 90.5%
9. Promotion versus Discounts or
Rebates or Free Goods
• Discounts and promotional allowances used repeatedly become ‘part of the price’, and appeal is
lost. Hence, why many automobile companies have gone to a everyday price versus discounts or
rebates
• A true incentive provides not only an inducement, but adds excitement, interest, drama and a sense
of urgency.
• Discounts often mean ‘giving away’ the product and ‘doing this a new way’ each time develops into a
vicious cycle.
• Discounts simply cannot generate the appeal and motivation as can merchandise or travel awards.
• A dealer or distributor accustomed to buying on the basis of discounts is vulnerable to your
competitors’ inducements.
• Discounts are often passed on to the end-user at a lower retail price.
• Discounts can be easily matched by competitors
• Non-cash incentives represent minimal investment because the program funding is accrued basically
from increased sales or purchases.
If cash/rebates/free goods/discounts are such a great motivators, why aren’t they selling more
or buying more?
10. PPAI and ASI Studies Conclude
• 84% of end-users can name the advertisers on the items
they receive
• 62% have done business with the advertiser AFTER
receiving the item
• End-users keep products for 7 months
• The average cost-per-impression of a promotional product
= $0.004
• The CPI for advertising specialties beats all forms of media
(except billboards)
11. The Best Carrot!
Case Study from Major Oil Company based out of Texas
Contest consisted of five regions across North America. The result
was that it took 6 times amount of cash to achieve the same results
as normal merchandise incentives.
Non-cash outperformed cash by 46%
Non-cash: 37% increase in product mix
ROI
Cash: -20%
Every $1 invested = an $0.80 return
Non-cash: +31%
Every $1 invested = a $1.31 return
12. The Best Carrot!
Some 65 percent of executives believe that incentive programs using travel
and merchandise are more memorable than those using cash; 60 percent of
executives believe that sources of merchandise and travel are more helpful in
creating an incentive program than are sources of cash, and 57 percent of
executives believe that bonus payments are often regarded by employees as
something they are due, according to the most recent “Survey of Motivation and
Incentive Applications” by the Incentive Federation.
Columbia University study dated May 3, 2005 by Ran Kivetz, Ph.D. found
the following Hedonic, Luxuries are more Motivation than Cash and Cash
Equivalents etc.
Motivational research has shown that people become income adjusted. They
know how much cash is needed to maintain their desired lifestyle and work
hard enough to keep at that level.
13. Auto Maker Incentives & Rebates
Average size of rebates/incentives has grown 10% year-over-year
since 2002
Only 30% of customers in 2004 cited an incentive/rebate as
a reason for purchasing
Down 10% from 2002
Source Martiz Inc.
14. The Best Carrot!
Federated Insurance Case Study
Although non-seasonal products sales dropped drastically every
May. May had never reached 5% of their annual volume.
A non-cash incentive program was run for the month of May. It
was concepted well, promoted effectively and produced 16.4% of
that years volume!
Sales people responded to $200,000 in merchandise awards while
earning $1,000,000 in additional commission that was there all the
time!
15. The Best Carrot!
Goodyear Case Study
900 dealers participated in the program
Those dealers who received cash bonuses boosted their sales a
successful 22% over the previous six months
Those dealers who received non-cash awards boosted their sales
32% -- 46% greater than cash!
For every dollar invested in the program, Goodyear got back 80
cents from the cash group and $1.31 from the non-cash group
16. The Best Carrot!
Mazda Case Study
Three month test on truck sales (two test groups) - 32 districts
offered cash and 32 districts offered non-cash
Non-cash districts @ 115.7% of goal (cash districts @ 102.1%)
21 of 32 non-cash districts exceeded goal (cash districts 15 of 32)
All sizes of dealerships in non-cash groups outperformed cash
groups
17. Budget Rules of Thumb
Invest 1-3% of sales/purchases
3-10% of incremental sales/purchases
The actual percentage would depend on your gross margin %
and the importance of winning the new business now
18. Applications
Objectives
Gain Trial of a New Product
Capture Greater Customer Share
Lock Out Competition
Move Inventory
Target Audiences
Dealer Parts Managers/Buyers
B2B Buyers
19. Concept 1:
“Great Play Challenge”
• Offer: Meet with your sales rep face to face or at your facility
to play the Hockey Challenge Game ( Feb-May 2011)
• How To Play: Just pick the NHL US/Canadian Team game winner
each week and earn points. C
• Bonus Points For: Referring a Customer, Sign Up for E
Newsletter or Text Promotions, Complete Product Knowledge
Surveys etc.
• Prizes: Trip for Two to the Stanley Cup, SportsWii’s, NHL Hockey
Jackets etc.
http://games.vancouversun.com/vancouversun/hkpickem10/promo
http://games.senatorsextra.com/ottawacitizen/hkpickem10/promo
20. Concept 2:
Millionaire Promotion
• Offer: Meet with your sales rep face to face or at our
facility to play the Millionaire Game ( Feb-May 2011)
• How To Play: Each activity you sign up for gets you a
chance to play the Millionaire Game
• Activities: Referring a Customer, Sign Up for E
Newsletter or Text Promotions, Complete Product
Knowledge Surveys etc.
• Prizes: $1 Million, Movie Passes, NHL Hockey Stuff etc.
21. On Line Game Example
Objective
Increase sales in commercial vending channel
Solution
Create an online game with a chance to win $1
million. To play you had to get the freshness code
off the package
Results
Sales grew from 12 million to 16 million units
during the 9 month promotion period
22. On Line Football Game Example
•Purchase Parts/ Equipment
•Receive Game Code
•Enter Code and Pick 6
Footballs
•Behind each Football is
Yardage
•Based on Yardage Gained =
Prize Won
•5 Ways to Win Prizes
•Big Prize insured to cover risk
23. Concept 3:
MobiDecoder Game Traffic Builder
Short Code
Keyword
SMS Msg.
Consumer clicks
link, MobiDecoder™
message is delivered
24. Concept 4:
Conditional Rebate Insurance: If XX Team
Win the Cup and You Pick Game Winning Goal
Your Purchases are FREE ( Feb-May 2011)
25. Concept 5:
Customer Loyalty Program
• How It Works
o Earn Rewards with Purchases from BW
o Every $100 Purchase Earn Points ( ½ cent per point)(% of Sales TBD)
o Point bonus on specific product emphasis and/or vendor funding, referrals etc
• Reward Options:
o Merchandise, Travel, Entertainment and Events
Website: https://taz.valuesme.com
Username: salesdemo Password: demo
o Fuel or Gift Cards
27. Case Study – “3M Dental”
Objective: 3M wanted to increase sales of new teeth molding
products long term
Creative Platform: Art of Dentistry
Theme: Famous Impressions
Plan: Offer gifts with purchase over a 6 month period to gain trial
and repeat purchase
Dental Assistants would accumulate invoices and mail in to
redeem for gifts
Gifts were items for the dental office
Promotion Materials: Brochure, Order form, letterhead, T-shirts
Result: Sales exceed expectations and the program ran for several
years with various 3M products being promoted
31. Case Study – Sandoz Nutrition
Objective: Sandoz wanted to take share from a competitor for two
key brands
Creative Platform: Travel
Theme: Taste for Travel
Plan: Offer gifts with purchase over a 6 month period to gain trial
and repeat purchase
Food Service buyers would accumulate invoices and mail in to
redeem for gifts
Gifts were items for personal or office
Promotion Materials: Brochure, Order form, letterhead
Result: Sales exceed expectations and the program ran for several
years with various Sandoz products being promoted
32. Concepts 1, 2, 3, 4 & 5:
Communication Plan
• Customers: Communication Plan By Customer Value
o Tier One: Continuity Direct Mail Campaign Candy Program
o Tier Two: One Source Button
o Tier Three: Postcard Mailer or Post it Note Mailer
o Copy Slant: How great plays effected the teams ability to win the game. Just
like our great products, team of experts and one source effects your ability to
get the job done right, on time & on budget
• Targeted Prospects
o Purchase a listed of prospects from associations and get names from sales reps
o 1-5 Postcard mailings to generate response then put into Tier 1-3 mailings
based on Customer Potential Value
o Run Radio Spots, Website, Newsletters, Invoice Stuffers and Facebook Key
Word ADs to generate response then put into Tier 1-3 mailings based on
Customer Potential Value
33. Candy Program Example
Objective
Gain 1-2 New Retail Accounts valued at
$500,000 to several million per win
Strategy
DDM Campaign to multiple Contacts
with each Retailer and investment of
$200 per contact
Results
5 New Accounts were Won
34. Creative Direct Mail Examples
Sound Pocket Folder
Sound Tube
Mailer
Student Easy
Button
Sound
Flat
Mailers
35. FEDEX Style Envelope or Personalized
Post-It Note Letter Mailer
Personalized Gets Immediate Attention Letter Self Mailer
36. Build Traffic to Website
Place your WebDecoder
here!
Place your WebDecoder
here!
Everyone
is a winner!
Contact information,
feedback on their last
experience with Alitalia