The ingredients matter, but so does the way they’re mixed together.
Perhaps the most critical component of building a successful incentive or loyalty program is the rule structure. This happens to be one of our specialties. While each client and program are unique, there are several preferred ingredients when it comes to crafting the best recipe for minimum risk and maximum results.
- Company goals
- Target audience
- Past performance data
- Market growth potential
- Measurable actions
- Rewards that matter
With the proper rule structure in place our clients enjoy more than a scent of good things cooking… they get a solid taste of a winning strategy. Let’s take a look at the benefits of a good B2B incentive or loyalty program.
Control Your Budget
No one wants to be surprised by a budget running out of control. With a good rule structure, our clients have security with their numbers. There won’t be shocking overages because we tie the desired behavior with a reward value that doesn’t exceed expected individual gross profit contributions. Many of our rule structures actually plan for a program to be paid for entirely through incremental gains. This is true for reward points or travel programs.
Reduce Your Risk
With Motivation Excellence as your expert partner, we can anticipate common pitfalls, advise alternative ways to meet your goals, and use our experience to recommend the best reward structure for your program. When it comes to a points program, that means suggesting point values, award options and earning periods. For incentive group travel programs, it means selecting the right destination at the right time of year, negotiating advantageous contracts and advising on number of winners, among many other things.
Adjust as Needed
A good rule structure builds in metrics that can be evaluated throughout the program, not just at the end. Doing this allows our clients the ability to adapt to mitigate any potential underperformance, while maximizing likely wins. For a points program, that could include offering bonus points for certain underperforming categories. For a travel program, it could mean adding extra spots on the travel experience based on how well participants are performing.
Segment Goals & Rewards
Sometimes, especially in B2B loyalty programs, having tiers makes sense. Different groups of customers have different purchasing histories and potential, which our clients can nurture or expand on. A top performer award, like a travel experience, can be paired with a points program so all participants who achieve their goals are rewarded at a level in line with their performance. For a points program, offering a wide variety of redemption options allows everyone to find their own motivation to succeed. Some may want to work toward a travel package for their family, while others might want to spend their points on home improvement projects.
There are so many ways our team can work with our clients to truly customize incentive and loyalty programs. It all starts with creating the rule structure that benefits the client and motivates their participants, so everyone walks away with a desire to continue growing a strong relationship.
We’d love to meet with your company to talk about the best rule structure for your particular set of ingredients. Together we can bake the perfect program, layered with elements custom to your needs.
