The main differences between an incentive and a reward programme

The challenge of any HR, Sales or Marketing department is how to motivate their employees or sales partners better. In order to reach the business objectives (faster) and to achieve the strategic company goals, which will help realise their long term vision and mission. Business objectives could be to increase customer loyalty, grow turnover, rise customer share of wallet, …

So which type of motivational programme should you use to help achieve these company goals? Here are some main differences between an incentive and a reward programme which you have to take into account:

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  1. Past or future?
    Besides a strong internal communication strategy, companies can reinforce this challenge with an incentive or reward programme. An incentive programme will help them achieve a future goal such as 95% customer satisfaction if they now are at 90%. A reward programme gives employees or partners an appreciation when a goal or a unique performance or event has been met.
  2. Points or non-points based?
    An match pointincentive programme is points based and a reward programme is non-points based. In the first case input on targets or KPI’s is required. Either input on KPI’s is being uploaded into an incentive platform (file or automated database connections) or the employee/sales partner fills in their own results in an online (preferably) standardised form. Targets always need to be quantifiable (e.g. customer satisfaction %, speed of picking up a customer call, the response rate on offers, …) and in line with the goals an employee or sales partner needs to achieve within his department or subsidiary. Logically sales driven employees or partners will have more sales related targets than e.g. somebody from accounting.
    A reward programme is less complex and has a shorter duration period (e.g. end-of-yeargift, quality label earned, years of service, …).  It doesn’t need a regular update of results and can also be organized quite fast. Mostly people only log in once into an incentive platform, choose an incentive and log out again.
  3. Cash or non-cash?Wolf-of-Wallstreet-585x370
    The advantage of both type of programmes is that the motivational and psychological effect lasts longer than purely rewarding with cash. Once people receive money on their bank account, they mostly have already forgotten about it.

My experience is that Sales and Marketing Directors use incentive programmes more than HR directors. For the latter we mostly role out Reward programmes due to the simplicity of them and the easy link with important milestones that a person has achieved.

More info?

Check out the ‘How to set up a successful incentive programme?‘ presentation to help reach business objectives better and faster with hands-on tips and tricks on:

  • improving performance
  • motivational models
  • incentive programme design models
  • successful steps and key challenges
  • incentive programme possibilities.

About SwingGroup

I&MWinnerSwingGroup is a Benelux-based incentive marketing agency that specialises in B2B and B2B2C incentive and loyalty programs.  Its clients include BMW, Coca-Cola, Electrolux, GE, Insites, KBC, Philips, Q8, Samsung, Solucious, Tech Data, Thomas Cook, Truvo, USG, Unilever, Unilin, Vaillant, and others. It offers a comprehensive solution from set-up of an incentive platform, to supporting integrated communication, to fulfilment of the incentives (more than 300,000 gifts and 300 gift vouchers available in real time). The Motisha incentive management and reward platform, which was developed in-house, is the heart of business.

Contact information

Everaert Gunther – Managing Director – gunther@swinggroup.be – Tel: +32 50 50 24 64
http://www.swinggroup.euhttp://www.motisha.com
http://Linkedin.com/company/swinggrouphttp://be.linkedin.com/in/everaertgunther
Twitter: @swinggroup – @swinggift – @gunar2

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PRESS RELEASE: SwingGroup nominated in 3 categories at the Incentive & Motivation Awards 2015

Bruges, 23/03/15, SwingGroup, the Benelux market leader in online incentive and loyalty programs, was pleased to see two of its incentive and loyalty programs, powered by the Motisha Software, being nominated in three different categories at the Incentive and Motivation Awards. This prestigious event will take place Wednesday 22 April 2015, aboard the stunning Silver Sturgeon luxury river yacht on The River Thames, London.

About the Incentive and Motivation Awards (2015)

The Incentive & Motivation Awards Europe recognizes the best and most effective incentive and dealer channel programs, as well as motivational employee engagement solutions, and ground breaking innovative technical platforms. The event will be fun not too formal, thought provoking and inspiring. Ultimately an event that honours excellence and innovation across the industry.

Incentive and motivation awards 2015boot

About SwingGroup’s nominations

SwingGroup has been shortlisted in all three categories it entered for:

  • “Best use of technology in a motivation solution”
  • “Most improved business/workforce performance program”
  • “Most innovative channel incentive program”

“We’re very proud that an international jury recognized the added value of the Motisha incentive management platform for its customers.” says Gunther Everaert, Managing director of SwingGroup.

A first program which was submitted by SwingGroup was TD Boomerang, aBenelux channel incentive program for Tech Data, the global leading IT-channel distributor. Its goal was to easily develop and manage Tech Data’s own umbrella incentive campaign, together with additional vendor incentive campaigns at the same time, in order to seize maximum market opportunities.

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A second submitted incentive program was KBC Vipping which rewards KBC’s top clients for their loyalty. KBC currently ranks as one of the top (-3) banking and insurance groups in Belgium, with Central Europe as its second core market.

kbc

In these two incentive incentive programs have we not only maximized customer retention and increased customer lifetime value but also significantly lowered the total cost of ownership. It would be great that the win we realize for our customers would eventually lead to a win at the Incentive and Motivation awards”  Gunther Everaert ends of with.

Would you like to know if SwingGroup wins these awards? Follow this blog or stay updated through SwingGroup’s social media channels.

About SwingGroup

SwingGroup is a Benelux-based incentive marketing agency that specialises in B2B and B2B2C incentive and loyalty programs.  Its clients include BMW, Coca-Cola, Electrolux, GE, Insites, KBC, Philips, Q8, Samsung, Solucious, Tech Data, Thomas Cook, Truvo, USG, Unilever, Unilin, Vaillant, and others. It offers a comprehensive solution from set-up of an incentive platform, to supporting integrated communication, to fulfilment of the incentives (more than 300,000 gifts and 300 (electronic) gift vouchers available in real time). The Motisha incentive management platform, which was developed in-house, is the heart of business.

Contact information

Everaert Gunther – Managing Director – gunther@swinggroup.be – Tel: +32 50 50 24 64
http://www.swinggroup.euhttp://www.motisha.com
http://Linkedin.com/company/swinggrouphttp://be.linkedin.com/in/everaertgunther
Twitter: @swinggroup – @swinggift – @gunar2

PRESS RELEASE: SwingGroup nominated for ‘Best B2B Loyalty Programme’ at The Loyalty Awards 2014 in London

Bruges, 10/04/14, Bruges-based SwingGroup, the Benelux market leader in online incentive and loyalty programs, was pleased to see specialist IT-channel product solution & services distributor Tech Data be nominated for ‘Best B2B Loyalty Programme‘ at The Loyalty Awards 2014 in London for its td.boomerang incentive program, which was developed on the SwingGroup Motisha platform.

About The Loyalty Awards 2014

The Loyalty Awards celebrate excellence, innovation and best practice in the loyalty industry across Europe, the Middle East and Africa. Created by Loyalty Magazine, the Awards have responded to a desire in the loyalty business to celebrate the achievements of those companies and organisations excelling and achieving the extraordinary.

The worthy winners in each category are selected by a judging panel of independent industry experts. The rigorous entry and judging process then culminate in a spectacular evening of celebrations and networking with senior and key players from the loyalty business across Europe, the Middle East and Africa in attendance. The prestigious Loyalty Awards black tie dinner and ceremony will be take place this year at the Grosvenor House Hotel in London’s Park Lane on Tuesday June 10, 2014.

About the td.boomerang incentive program

td.boomerang is an umbrella annual incentive program for the partners of Tech Data to automatically generate points based on turnover in their specific product categories. Whoever earns the most points in a given quarter qualifies to participate in an exclusive team event.  Events full of inspiration providing plenty of stimulation according to Karel De Meersman, Channel Development Manager at Tech Data. “The prizes for last year’s winners, for example, included tickets for the arrival leg of the Tour de France on the Champs-Élysée, a day at Disneyland Paris, and a group trip to Peru.”  The person who collected the most points over the course of the year also won a ticket to Peru at the end of the campaign year.

According to Dimitri Rubens, Channel Marketing Manager at Tech Data, the success of the incentive program is due to how easy it is to use. “The Motisha platform made it possible for us to develop and manage campaigns easily ourselves, so we could focus on specific products quickly and in an original way.”

According to Gunther Everaert, Managing Director of SwingGroup, the second factor behind the success of the program is that vendors, such as HP, Microsoft, Logitech, and others, can also integrate their own incentive programs on the platform. “For those vendors, this is an easy way to stay in touch with the complete IT channel through Tech Data, which offers maximum upselling and cross-selling opportunities for everyone.” In addition, the partners are highly motivated to participate because the points that are earned with the ad hoc activities also contribute to the umbrella annual program.

About SwingGroup

SwingGroup is a Benelux-based incentive marketing agency that specialises in B2B and B2B2C incentive and loyalty programs.  Its clients include BMW, Coca-Cola, DeLonghi, GE, Insites, KBC, Philips, Q8, Tech Data, Truvo, USG, Unilever, Unilin and Vaillant. It offers a modular total solution from set-up of an incentive platform, to supporting integrated communication, to fulfilment of the incentives (more than 3,000 gifts and 400 (electronic) gift vouchers available in real time). The Motisha incentive management platform, which was developed in-house, is the heart of the system.

About Tech Data

Tech Data Corporation is one of the most important distributors of technology products, services and solutions in the world. The advanced logistical possibilities and added-value services help 120,000 distributors in more than 100 countries respond effectively and profitably to the differing technology needs of the end users.

Contact information

Everaert Gunther – Managing Director – gunther@swinggroup.be – Tel: +32 50 50 24 64
http://www.swinggroup.euhttp://www.motisha.com
http://Linkedin.com/company/swinggrouphttp://be.linkedin.com/in/everaertgunther
Twitter: @swinggroup – @swinggift – @gunar2

Christ’l Pauwels – Tech Data Communication Manager – cpauwels@techdata.be – Tel: +32 479 998 735
http://www.techdata.com –  http://www.techdata.be

PRESS RELEASE: SwingGroup develops award-winning incentive platform for Tech Data

Bruges, 06/02/14, Bruges-based SwingGroup, the Benelux market leader in online incentive and loyalty programs, was pleased to see specialist IT-channel product solution & services distributor Tech Data win the award for ‘Best Channel Incentive Program’ at the presentation of the Channel  Awards 2014 for its td.boomerang incentive program, which was developed on the SwingGroup Motisha platform.

About the Channel Awards 2014

The Channel Awards is a unique event that honours the top professionals in the distribution, purchase and sale of IT products and services. Everyone who is anyone in that segment is sure to be found at the annual event, which was held for the 12th time this year.

About the td.boomerang incentive program

td.boomerang is an umbrella annual incentive program for the partners of Tech Data to automatically generate points based on turnover in their specific product categories. Whoever earns the most points in a given quarter qualifies to participate in an exclusive team event.  Events full of inspiration providing plenty of stimulation according to Karel De Meersman, Channel Development Manager at Tech Data. “The prizes for last year’s winners, for example, included tickets for the arrival leg of the Tour de France on the Champs-Élysée, a day at Disneyland Paris, and a group trip to Peru.”  The person who collected the most points over the course of the year also won a ticket to Peru at the end of the campaign year.

According to Dimitri Rubens, Channel Marketing Manager at Tech Data, the success of the incentive program is due to how easy it is to use. “The Motisha platform made it possible for us to develop and manage campaigns easily ourselves, so we could focus on specific products quickly and in an original way.”

According to Gunther Everaert, Managing Director of SwingGroup, the second factor behind the success of the program is that vendors, such as HP, Microsoft, Logitech, and others, can also integrate their own incentive programs on the platform. “For those vendors, this is an easy way to stay in touch with the complete IT channel through Tech Data, which offers maximum upselling and cross-selling opportunities for everyone.” In addition, the partners are highly motivated to participate because the points that are earned with the ad hoc activities also contribute to the umbrella annual program.  

About SwingGroup

SwingGroup is a Benelux-based incentive marketing agency that specialises in B2B and B2B2C incentive and loyalty programs.  Its clients include BMW, Coca-Cola, DeLonghi, GE, Insites, KBC, Philips, Q8, Tech Data, Truvo, USG, Unilever, Unilin and Vaillant. It offers a modular total solution from set-up of an incentive platform, to supporting integrated communication, to fulfilment of the incentives (more than 3,000 gifts and 400 (electronic) gift vouchers available in real time). The Motisha incentive management platform, which was developed in-house, is the heart of the system.

About Tech Data

Tech Data Corporation is one of the most important distributors of technology products, services and solutions in the world. The advanced logistical possibilities and added-value services help 120,000 distributors in more than 100 countries respond effectively and profitably to the differing technology needs of the end users.

Contact information

Everaert Gunther – Managing Director – gunther@swinggroup.be – Tel: +32 50 50 24 64
http://www.swinggroup.euhttp://www.motisha.com
http://Linkedin.com/company/swinggrouphttp://be.linkedin.com/in/everaertgunther
Twitter: @swinggroup@swinggift@gunar2

Christ’l Pauwels – Tech Data Communication Manager – cpauwels@techdata.be – Tel: +32 479 998 735
http://www.techdata.com –  http://www.techdata.be

Why in 2014 the digital gift voucher will be the incentive success formula!

Remember those days, not even so long ago, that an incentive program used to consist of a nice brochure with nice incentives neatly designed, with required points to order? A brochure distributed face-to-face or by direct mailing and in a later phase by e-mailing?

Remember the tough task finding those spot-on products which last the whole campaign, motivating everyone, preferably not dropping in price, not running out of stock and not changing in model? Remember not being sure if by the end of your campaign, your catalogue would meet the needs of your target audience during the whole incentive campaign. Stimulating them to achieve your goals more quickly?

New millennium, new opportunities

Luckily, as from the beginning of the last decade, online incentive and loyalty platforms came along. Not only helping you to be more flexible in creating a tailor-made incentive catalogue, but also keeping you up with new trends or new products during your incentive campaign. The only downfall  was, that even though you could show more products in more gift categories and even though you could measure the interest in those products presented, you could still miss out on nice incentives inspiring your target audience. No wonder that, as from the mid 2000’s, gift vouchers entered  the arena. Spicing up the incentive offer of physical products and giving you more liberty to really motivate everyone with the right incentive at the right time.

Slowly but surely gift vouchers became, especially when the crisis began in 2008, an integral part of most incentive campaigns, because of two important factors.  First of all because of speed, participants are being incentivized with a faster delivery, so between 3 to 10 delivery days could easily be saved. Secondly by saving between 50 to 80% on the delivery cost.

2014 the year of the digital gift voucher

Digital Voucher

Two evolutions have arisen that will make the digital voucher the success formula in 2014 for many incentive programs. With the rise of smartphones, tablets and the speed of the internet a new sense of interaction is required to satisfy the needs of the modern homo incentivis:

–          The  cash on the nail principle: the faster you can reward people the faster they will go for their next target;

–          Many digital touch points offering maximum reach in which the digital voucher can be easily distributed such as e-mail, downloadable pdf, scan code and digital wallet;

–          For the company an instant digital reward means another 1 to 3 business days delivery time profit and also another 50 to 100% on delivery cost savings .

A second evolution is the market pressure which the classical brick and mortar retailers are facing. Not only are they under fire of consumers consuming less due to the crisis. But they are also under pressure because of the online webshops fastly gaining market share. Therefore they are looking for and are open to means reaching a new target audience with a minimum of investment. Thus discovering the new potential of b2b target audiences.

Great opportunities for incentive marketing professionals

This evolution offers great opportunities for all actors involved in incentive and loyalty programs. Retailers can, through one strong b2b incentive platform such as Motisha, reach many different (new) target groups in different countries in one movement. Companies are, for the first time, able to minimise their incentive costs and maximise their return on motivation. And finally Incentive marketing companies can focus on the overall incentive strategy and value adding supporting services instead of more operational time consuming issues.

Therefore I proudly announce the digital gift voucher as the opportunity of 2014 in the incentive industry!

Inspirational greetings

Gunther Everaert
Managing Director of SwingGroup
IMA Europe Board Member

http://www.swinggroup.eu – http://www.motisha.com

Gunther EveraertGunther Everaert is the Managing Director and Founder of SwingGroup, the incentive marketing market leader in Benelux. He has strategically advised and developed integrated incentive marketing solutions for Fortune 500 clients such as BMW, Coca-Cola, GE, Philips and Unilever.  He has spoken at trendsetting conferences such as Digital Marketing First and HRM Masterclass e-recruitment, given interviews on Belgian national radio and is a regular guest lecturer at Ghent university.