Your Friendly Drill Instructors. PPAI Expo January 15, 2013 Facilitated by Pete Mitchell
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1 Incentive Boot Camp PPAI Expo January 15, 2013 Facilitated by Pete Mitchell Your Friendly Drill Instructors Pete Mitchell Director, B-to-B Sales, Samsonite LLC (843) Dean Resnekov Owner, Indigo Time (888) Pete Adanalian President, Dragon Distribution (805) Dennis Borst President, Patriot Marketing (888) Mike Landry, IP Director-Special Markets, Tumi (800)
2 What we ll learn today The Incentive Marketing Landscape The players in it How Incentives are used How Diversity is a good thing Resources to help you The two most important words in the English Language Huh? Who? What? Where? When? How? Why? The Road Map 2
3 But what you want is Motivation makes it all go What is Motivation? Why do people do what they do? Motivating factors Goals and our behavior Does it work? Cash is not King How Perceived Value works What s being done to validate what we think we know How big is the pie? 57% of America s large companies use incentives What is an incentive program? An activity designed to promote or encourage specific actions by a specific audience to produce measurable outcomes through integrated motivational strategies during a defined time period. 3
4 Types of incentive programs 1. Consumer Promotions The Pull Strategy Sweepstakes (determined by chance) Contest (determined by skill) Continuity/Frequency In pack, on pack, near pack Through The Mail Types of incentive programs 2. Trade Promotions the Push Strategy Dealer Loader Display Enhancer Dealer Incentive Buy more, get something Types of Incentive Programs 3. Sales programs the Internallyfocused one Follow up leads Present new merchandise Find new customers Make more calls Improve customer contact data Historically, the #1 use of merchandise in incentive programs 4
5 Types of Incentive Programs 4. Loyalty the externallyfocused one Encourages ongoing purchases Facilitates customer conversion Protects market share Creates long term customers Types of Incentive Programs 5. Recognition/Award the one for our own people Tenure Safety Attendance Productivity Quality control Training/wellness and hundreds more Everyone uses incentives sorta employees employees employees employees 5-9 employees 1-4 employees 0% 10% 20% 30% 40% 50% 60% Source: Incentive Federation Study,
6 The End User the Holy Grail Only link in the chain that makes a buying decision Typically trying to solve a problem Seeks solutions, not stuff Can be almost anyone in the organization Elusive, hard to spot, even harder to re acquire Can be spotted in packs, also called committees The Spaghetti Bowl, or how to find the End User in 10 steps or less Directly Through the Reseller network Reseller someone who takes your product and resells it to an end user. AKA Performance Improvement company Incentive House Sales Promotion Agency Incentive Distributor Promotional Products Distributor Recognition company Fred, the guy who knows the guy in HR What makes you look good to the Reseller and/or End User COMMITMENT not involvement Solutions to their problems Knowledge & Experience Rapid response to short deadlines Responsive customer service Reasonable price, not necessarily the lowest price But it depends 6
7 What makes you look REALLY good Electronic communication, especially about tracking and order status A knowledge of what s going on in the market Benchmarks on what others in their industry are doing Consultative selling Proactive customer service Ideas the cornerstone on which the entire market is based. What you might not know that you need to know This is the most convivial business ever Everyone here is a potential resource and they re ready and willing to help It s not zero sum everyone can win Whatever your expectations are now, divide the dollars in half, multiply the time by two But it depends What you probably already know that you need to know It s a Contact Sport you either have them or not Relationships break all ties, but you probably won t have them at first Doing what you say, the way you said it, helps S h h f ll i d Success happens when you re fully immersed Solve clients problems and they ll solve yours 7
8 How to explain this business to the Boss We re finding quarters in the cushions of the couch We survived this long without being in the business, let s not act like we re betting the farm on it The Good News and the Bad News is the same news: everyone s our customer Please don t ask me to forecast because I ll only break your heart We know we re not first in line for resources, but don t expect us to make a gallon of lemonade with a half gallon of water If we stay the course, we ll be very glad we did What to do while you re here Introduce yourself to at least one of your kind Introduce yourself to at least one Rep, one Reseller, and one Gift Card provider Remember we re all here to teach and to learn. There are hundreds of years of experience walking around the halls. Access them Call one of us if you re stuck we live to serve What to do next week Make a commitment to reach out to at least one person you met here and do it Call me tell me what you learned and what you re doing next Commit to having fun with this it s not Rocket Science 8
9 How to get more help Programs, case studies, research www. Theirf.org IMA Strategic Industry Groups the heart of the Association Incentive Manufacturers & Rep Alliance Incentive Gift Card Council Global Incentive Council IMA Canada Council Incentive Travel Council Performance Improvement Council IMA Europe Recognition Council Promotional Products Provider Council Publications Human Resource Executive Incentive Motivation Strategies Occupational Health & Safety Premium Incentive Products Promo Magazine Sales & Marketing Management Selling Power Magazine PPB The Counselor 9
10 Websites org What we learned today It s a wide world out there Incentives are everywhere, and everyone s your customer It s an incremental lbusiness You have help if you want it The two most important words in the English Language Thanks for coming! Do your homework! 10
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