The Power of Incentive Travel
The Incentive Research Foundation has recently released 7 Incentive Travel Stats Everyone Should Know.
These statistics are US based stats and sadly we don’t have access to the same compelling data for Australian and New Zealand businesses and our local industry.
However, they are still relevant to the general industry and the positive effects the implementation of Incentive Travel as part of your Incentive Strategy will have on your businesses performance.
1. 46% of U.S. businesses use incentive travel
2. U.S. Businesses spend $22.5 Billion annually on incentive travel
3. Organizations that provide non cash rewards such as incentive travel have 3 times higher revenue increases
4. 100% of Best-in-Class companies (those with the highest customer retention and sales growth) offer group travel to recognize year-end sales success.
5. Incentive travel is not just for sales. Of companies that run awards programs, 53% use incentive travel to recognize sales, 43% to recognize employees, 33% to recognize channel partners, and 27% to recognize customer loyalty.
6. Properly designed and executed incentive travel programs can increase sales productivity by 18% and produce an ROI of 112%.
7. Per person incentive travel budgets are now up to an average of $3,440.
Some pretty compelling statistics in there!
Incentive Travel – what makes it an incentive and not just a tour?
I’ve just returned from an amazing two night sales incentive trip that we developed and ran for a Clients Top Performing Sales People and it was a great example of the value that a quality incentive trip creates for the host company.
Creating unique Incentive Trip’s for our clients is something we get our kicks out of, but I think it’s worth discussing what makes a quality incentive trip. In my experience these are key factors;
UNIQUE It doesn’t matter where you are in the world, whether it’s locally in Australia or in some exotic destination- an Incentive Trip must include unique experiences that as an individual traveller you could not do.
This is not a tour, this is not just about staying in 5-star luxury, incentive travel is about going out of your way to plan an experience that your Top Performers say – ‘WOW, I can’t believe you did all this just for us!’
And often it’s the small, inexpensive touches that are the most unique.
CULTURE Bringing the culture alive in a way that suits your demographics. One thing we’ve learned is that Australians can only handle so many art galleries! Being able to create an itinerary where your group gets to experience the culture, life as a local and what makes that destination tick, is an art form and an incredibly important part of an Incentive Trip.
CREATE BUSINESS OPPORTUNITY without realising it… It’s rare to have the opportunity for a CEO, MD or Director of divisions to have their best performers in one place at one time. The opportunity this creates for your business is just crazy! Getting to experience one on one time where a relationship can be built, business issues discussed and taken care of in a relaxed environment and then plenty of happy snaps that create a warm and fuzzy memories. This creates loyalty, cuts down the distance between the ‘big wigs’ and everyone else and humanises an organisation.
A quality Incentive Trip needs to provide these positive opportunities by being well planned and executed.
THOUGHTFUL Every trip is different; some can range hugely in the participants travel experience, age, health and ideas of a good time. How you handle this and craft your itinerary is such an important part of making your Top Performers feel special and rewarded!
And the obvious things;
LOGISTICS This is a reward and it must feel seamless for the participants. There is always travel time and transfers, but these must be where they are meant to be, at the time they are meant to be. There must be care and contact but without feeling like your being rounded up like school children.
ON BUDGET Nothing worse than having an amazing trip and to find out on your return it’s gone over budget. This should be planned and controlled at every corner.
There are so many more important factors in the lead up to the trip and in the post trip follow up… but get the above right and you are on the way to creating the most unforgettable incentive experiences for your Top Performers!
Incentive Marketing – a career choice for young marketers!
As part of the Committee of Management of the Incentive Association I’ve been on a bit of a push to raise the profile of incentives for young marketers.
Last month, I met with my old college to discuss why Incentives should be part of the curriculum and it’s really gotten me excited!
I’m very passionate about this industry and I think it’s a shame that in Australia it seems most people tend to fall into the industry and it’s not one that they plan to enter.
So what’s so great about it?
- It’s just such great marketing! Incentive Marketing is measurable marketing and shows a true ROI for clients. It’s based on data and performance that is measured against that data.
- We get to devise strategy that connects with people, is aspirational and motivates! Our job is to find the best possible ways to motivate individuals.
- As we at EVT are a full service agency, for us it marries up a few great career loves in one – marketing, strategy, clever communications, creative, events and travel.
- We are constantly working on something new… every client has a different hurdle to overcome and not one strategy fits.
- We get to meet and interact with great people… all the time! Great clients, amazing Reward Participants and fantastic suppliers with new rewards or in exciting destinations that we get to put our clients stamp on! Pretty fun stuff!
I started my marketing career in Incentive Marketing and I think the development I received in those first few years were the best I had. I had a fantastic teacher who taught me the importance of the highest customer service, quality, creative work that was always about ‘how to connect with people’ and always pushing the envelope. Skills that have transferred with me into ‘other’ areas of marketing and brought me full circle back into Incentives.
I’m very keen to spread this industry far and wide and teach what makes great incentive marketing.
If you’re interesting to learn more about Incentive Marketing, or you are keen to support and spread the message in regards to how brilliant it is, contact me, mercedes@evtmarketing.com.au or join me through the Incentive Association www.incentiveassociation.com
Real business outcomes of simple incentives
This article has caught my eye.
It’s a short article, but it, very casually, showcases the success of simple incentives.
An excerpt from the article:
A major reason is the company maximises efficiency by paying staff extra for correctly filled orders.
“He was able to eliminate many supervisors because the line workers know their business best,” Mr DeLong said.
Former C&S president Edward Albertian told Bloomberg less than two per cent of company orders have errors, efficiency that’s “unheard of” in the industry.
What an insight into how a targeted behaviour tied to a reward can make long term behavioural change that ultimately impacts on the bottom line.
And add to that that they used the data collected to make smart business decisions based on factual output.
I do not advocate or ever advise our clients to have a disincentive component as part of their strategy. So I do not support their strategy of cutting people’s pay for not performing a job well. In our experience having a positive outcome due to the desired changed behaviour makes people work smarter and harder. You should not remove something – that’s the whip… not the carrot.
But the disincentive aside, I think this sends a clear message of how a simple incentive structure with a clear output can produce large results.
Don’t just rely on technology!
There is no doubt that Incentive and Reward & Recognition industry has gone through a plethora of technology developments over the last few years.
There are fantastic systems available in the market that automates programs.
- They shorten the lead time on data collection bringing data and results into real time.
- They create central areas of discussion, communities.
- They allow constant streams of communication 24 hours, 7 days a week.
- And they provide real time reporting to managers and executives.
- The create a seamless experience for the user.
Once developed, there is no question they take the time out of the running of an incentive and they provide a fantastic platform for programs.
BUT just because data is available real time and 24- 7 days a week, I don’t necessarily think that means that participants use it in that way. Or are any more engaged than in the past.
We are competing with all those other messages out there. We are all busy, on our mobile devices all the time. So what makes this type of program any better, different or more engaging?
EVT believes in the need for personality, having a conversation with our clients programs participants (on behalf of their program), bringing the rewards alive and being our clients resource to ensure that the program doesn’t stay stagnant on a system but that it changes, develops and is agile with the demands of the market.
We are in the business of rewards.
We are in the business of motivation.
We are in the business of conversations.
Incentive Programs are good news stories if run correctly. They are a REASON to have a conversation to ask for uplifted performance.
EVT are known to find unique communication tools that add value to the program through driving engagement. We use our systems for what they are good at but we create agile strategies that allow for the personal touch with; unique communication, personalised events and driving the end rewards in a tangible manner.
Let’s use these great new systems to make our programs better but let’s not forget about the need for personal connection!
Thank you!
A big thank you to everyone who came down and supported our bake sale for Cancer Council’s, the Biggest Morning Tea! We really enjoyed it, raised money for the Cancer Council and lots of yummy treats were enjoyed! It’s heart warming to be surrounded by such generous and giving people!
EVT’s Biggest Morning Tea
EVT are getting behind the Cancer Council Australia’s Biggest Morning Tea!
Although most Morning Teas were held in May, we’re a little late but we’re not going to let a date stop us!
We’ll be holding a bake sale on our office balcony (Suite 107) on Jones Bay Wharf in Pyrmont Sydney on Tuesday 18th June 10:30-11:30am (until stocks last)!
All proceeds go to the Cancer Council!
So if you’re in area and would like a nice mid morning treat- pop down! And if you can’t make it please donate through our online site http://nsw.cancercouncilfundraising.org.au/evt
Thank you for your support.
Read more by clicking on the below image!
It’s our 28th birthday this month!
It’s a huge achievement as a small business in Australia to make it to 28 years and something we are very proud of.
Over the past 28 years we have;
- Taken over 6,500 people on trips all over the World.
- We’ve explored some of the most well know and least know destinations in the world! Being the first Australian company to bring an Incentive group into Chile….
- We have taken incentive groups to explore 22% of the world… but we have investigated almost every inch of the world to find something new and wonderful.
- Had five marriage proposals made on our clients trips!
- At least 20,000 bottles of wine and 40,000 bottles of beer have been consumed across all trips (that we can account for)!
- We have sent hard earned rewards all over Australia, New Zealand and Europe on behalf of our clients programs and seen the rise and fall of ‘hot rewards’ (hot still is anything Apple).
- We’ve gone from photographing and printing 40 page catalogues that would remain relevant for a 12 month program to now updating product rewards daily on our AwardBank.
- Regardless of the trends and new developments, the core of what we do has not changed… at the end of the day… individuals like to be appreciated, recognised and rewarded for doing a fantastic job!
We want to thank all our wonderful clients whom have stuck by us for many years! And to our employees who have helped us throughout the many years. We are only around because of this fantastic support and we more than appreciate it!
It’s the 30th May and we haven’t celebrated yet… but there is nothing wrong with a whole birthday year right?
Dream Rewards
We are lucky that we get to experience and come across some of the best of the best in Rewards, Incentive Travel Destinations and Experiences not just in Australia, but across the world.
We don’t always get to talk about all of them as our recommendations for clients are very specific to their requirements.
So we thought to share some of the inspiration with you!
To be inspired follow us through twitter https://twitter.com/mercT or through my linked in account http://lnkd.in/_zGCSJ
#bucketlistreward if you want to join in with us and show us your Dream Rewards – as we know, for everyone it’s something different!
Here’s just a few #bucketlistreward to get you motivated!
Dream Reward – Safari Ivory Tree Lodge
Song Saa Private Island Resort #bucketlistreward
Exploring Antarctica #bucketlistreward
2013 incentive trends
It’s a scary thought to think we’re sitting in April 2013 already and that I’ve very much neglected my blog – but nothing like the present to rectify that!
There are already some very clear trends that have identified themselves in 2013 and I wanted to share them!
Agile Strategies – no longer is it enough to have one strategy that works for a full year! The market is changing and the expected ups and downs such as seasonality aren’t even predictable anymore.
But on the flip side, longer term strategies are proven to have more of an effect on long term behavioural change and performance which is ultimately linked to business outcomes and ROI.
By introducing agile strategies, we are having greater results from strategies and programs that are creating and welcoming the opportunity of measurement and reward flexibility/ changes throughout the program.
Reward and Recognition is key! – this trend isn’t going anywhere fast. It’s been a tough few years and employees are tired and disengaged.
Our clients are getting great results introducing peer to peer based Reward and Recognition programs that may only reward a small percentage of key staff but it gives employees the control and power to recognise those around them.
Ultimately driving employee engagement, better culture and lower employee turnover. This does not have to be a big budget… recognition & a thank you goes a long way.
Technology and old school communication – Technology is king for so many reasons; speed, ease of engagement/ contact, it’s cost effective and well it’s just easier! However, I’ve noticed a real appreciation coming back in to the market of well thought out tangible, creative communications when used in conjunction with technology.
A beautiful tactical mailer or communication that cuts through the clutter and engages with everyone because it’s something to touch/breathe/ smell and interact with is making a very welcome resurgence because sometimes there is nothing wrong with going old school – if it works!
We’re only 4 months into the year… let’s see what happens between now and August!
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