Not many people get the hang of implementing incentive programs immediately. Running a successful program takes skill and careful strategizing. It also requires taking emotional or abstract ideas like employee engagement or salesforce motivation and turning them into specific, concrete and measureable goals. The consultation and technology provided by incentive companies such as Loyaltyworks can break these tasks down so that you can begin using an incentive or reward program as a powerful force propelling you toward your goals.

In this article, we’ll identify ten of the most important steps in running a successful incentive program. Keeping these procedures in mind will help you maximize your program’s effectiveness:

1.       Envision Your Outcome
You should have a clear idea of what you want your team, department or organization to look like when your incentive program reaches the finish line (and then beyond, because there’s always room to grow). If you want to increase sales, decide how much you’d like to increase sales and in what kind of timeframe—15% by the end of the year, for example. If you want to improve customer service and relationships, you might aim to increase positive customer surveys by 20%. Whatever your goals are, you should be able to determine definitively whether or not you’ve reached them. Work only with absolutes!

2.       Clarify the Rules and Qualifications
Playing with cheaters isn’t any fun. Most of us have known this since our days on the playground. Many people still try to cheat the system if they see the chance, though, so make sure you state your incentive program’s rules clearly in the beginning and have effective validation measures in place.

3.       Ask Participants to Contribute Ideas
The quickest way to make someone feel more attached to an incentive program is to create the program using their input. Incorporating their ideas or opinions means they will be more invested in whether or not the program succeeds. They won’t be able to brush failure off as misjudgment on their managers’ part. When your program objectives begin to positively affect your organization, participants will feel like they were instrumental to your organization’s success, which will increase both their incentive program engagement and their sense of company loyalty.

4.       Reward Achievements Large and Small
It’s easy to forget your goals or feel discouraged by them when they’re far away. What will keep your team motivated throughout the first three quarters of the year if they don’t receive their reward until December? Sustain high levels of motivation by running several small incentive goals or promotions between large ones. This will inject bursts of energy into your employees or associates, driving motivation and keeping them engaged.

5.       Advertise Your Program
If your employees, sales channel partners, customers or associates don’t sense any excitement about your incentive program or regularly receive information about it, they’re less inclined to participate. Diverse and strategic communication plans, such as those offered by Loyaltyworks, help you reach out to your participant through multiple communication channels. Get the word out whenever you have a new promotion, a new product discount or a new goal. This keeps your program fresh on participants’ minds and ensures high engagement rates.

6.       Plan According to Your Risk State
You don’t have to do away with your incentive program entirely when your risk tolerance is low—simply adjust your reward distribution method accordingly. When your sales team or department is more averse to risk, increase the number of potential promotion winners and spread your incentive budget out. A winner-take-all approach might work best for an average risk tolerance climate. When risk tolerance is high, reward fewer winners but offer rewards with greater value. Adjusting reward distribution based on your risk state will ensure that you are maximizing program participation during high risk tolerance times, and that your program remains active during low risk tolerance times.

7.       Stir Up Competition
Harness the power of competition and peer pressure, because they can be an extremely effective motivators. Especially in sales departments, in which everyone is trying to come out on top, competition can be a high-octane fuel for your incentive program. Using a Leaderboard, for example, can throttle excitement with the visible achievements of every participant, motivating them to keep up the good work and remain on top of their game.

8.       Reward According to Accomplishment
Picture this: Salesperson A devotes weeks of effort to landing a deal with a new distributor and is able to penetrate a new market. S/he receives a reward for a job well done. A week later, a distributor in your supply chain, Salesperson B, receives the exact same reward for selling a few extra parts by happenstance. Needless to say, the first salesperson is bound to feel a little ripped off, or that the value of his/her hard work is decreased by a one-size-fits-all reward. Make sure you reward according to the amount of time and effort involved in the accomplishment. Otherwise, outstanding performers like Salesperson A will feel that their hard work is diminished and they’ll become less interested in going the extra mile.

9.       Track the Program’s Progress
Unfortunately, incentive programs are not magic solutions to your organization’s pain points. They are simply tools that will help you achieve your goals. As your department or organization changes, your objectives will evolve and those changes must be reflected in your program. To make sure your program is helping you get closer to your goals—and to make sure your current goals themselves are relevant—monitor and update your program often. Loyaltyworks offers free reports that will deliver information about engagement and activity in your program. These reports can help you determine which incentive, promotion and sales tactics are effective vs. those you should tweak. The more you fine-tune your program, the quicker it will help you identify both pain points and opportunities for growth.

10.       Measure in Multiple Ways
Sales numbers and financial success are what keep your organization afloat, but don’t neglect to measure other realms of performance. Keep track of growth when it comes to things like consumer satisfaction, customer loyalty, supply chain partner feedback, motivation of employees, region expansion and your salesforce’s product education. This will give you a “big picture” view of how well your company is doing and how beneficial your incentive program is.

Incentive programs are often executed haphazardly, with few planning or tracking procedures put in place. By following these ten guidelines, however, you’ll have an advantage over those who are operating out-of-date, ineffective programs. Forethought, monitoring and strategic reward practices will ensure that your incentive program achieves ROI and puts you within reach of your organizational goals.

Steve Damerow is CEO of Incentive Solutions (www.incentivesolutions.com). He is a recognized expert, published author, and host of the national radio show “Business Matters”. Incentive Solutions currently manages hundreds of incentive loyalty programs for clients across many industries. Steve Damerow can be reached at: sdamerow@isicorporate.com; 678-514-0203.