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Incentive: Reward for a purchase or performance. Objects or events that are valued, which incite to action or effort. Something valued by an individual or group that is offered in exchange for increased performance. “A stimulus or condition that exists in an organization with the expectation of directing or influencing the behavior of organizational members” (Chung, 1972, p. 31).
Recognition: Used to acclaim performance or milestones; Given to an individual or team in recognition of a specific accomplishment.
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From the Incentive Marketing Association:
Corporate America spends 46 billion dollars each year on incentives...
Yet fewer than 40% of North American organizations use incentive programs to motivate their employees and customers"
The incentive must have a perceived value, and when the individual is willing to expend effort to obtain the incentive, it becomes a goal"
(from the incentive marketing association)
Improve your business through incentives and motivation!
There is a direct link between employee satisfaction and customer satisfaction, and between customer satisfaction and financial success, according to "Linking Organizational Characteristics to Employee Attitudes and Behavior," a study by the Forum for People Performance Management and Measurement, Department of Integrated Marketing Communications at Medill School of Journalism, Northwestern University.
Knowledgeable and attentive employees account for 80 percent of the reasons that consumers feel satisfied, according to a PNC Bank Corp. survey.
Incentive programs can increase performance by up to 44 percent in teams and 25 percent in individuals, according to "Incentive, Motivation, & Workplace Performance," a study by the International Society of Performance Improvement.
A 5 percent increase in customer retention can increase lifetime profits from a customer by 75 percent, according to The Loyalty Effect (Harvard Business School Press), by Frederick Reichheld.
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.
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