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Top Reasons Marketers Fail When Planning Incentive Programs

Incentive program planning isn’t rocket science. With all the helpful tools and tips available, anyone should be able to compose a decent program, right? Wrong. Committing a crime of marketing is becoming more and more common in the competitive world of incentive planning. Although the general nature of it seems rather basic, ineffective programs are popping up everywhere. Listed below are commonly committed marketing offenses that are that should be avoided entirely:

Improper Targeting

There are several areas that an incentive program should aim to target – the reseller sales representative, customers, or employees. Many companies choose their audience blindly, or are unaware of who that audience should be. Choosing the wrong level of the demand chain to target can be detrimental to incentive plans.

Not Defining the Rules

If you were planning to enter a competition or a contest of some sort, more than likely you read over the terms and conditions before making anything final. Similarly, the terms and conditions are necessary for any business incentive program. Giving participants a detailed overview of the program is not nearly enough to qualify. Terms and conditions should be composed to clearly define the eligibility, parameters, and terms of the program. Participants should be asked to read over this document, and agree to everything listed prior to the program beginning.

Complicating Things

Incentive programs can be fun, but they shouldn’t look like a board game. Like the rules of your program should be, it’s simple: do not have overly complicated business rules.

Illegal Practices

Some countries are strict when it comes to regulating how these programs are conducted. Companies must make sure to validate that their incentive program is actually “legal” in targeted locations.

Failure to Register

Many companies fail to consider advanced registration and reporting metrics when planning their incentive program. When more than one participant is expected to submit a claim, it is probably in the company’s best interest to sell an incentive provider that can offer advanced applications to support and automate these services.

Double Dipping

Many vendor companies have recently decided that it would be wise to offer multiple promotions simultaneously.  This can only lead to confusion, and sporadic performance enhancement.

One Time Only

A well-developed incentive program should not be a one-time occurrence. If employee motivation and performance increased during the program, forging ahead with a new and confined plan is the most beneficial tactic. Not only will this continue to show performance results, but will also improve employee engagement and customer loyalty.

Radio Silence

Perhaps the most common and most detrimental mistake made during incentive planning is failure to communicate. No matter how much time you spend researching and developing an incentive plan, it will remain useless until employees become aware of its existence. Making sure employees are aware and understand the program is essential in creating an effective program for your company. Google+


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