When preparing to implement an incentive program, one of the most common (and important!) questions to consider is: ‘How will this program grow my business?’ But to effectively answer that question, you need the proper tools to measure your incentive program’s return on investment (ROI). With that in mind, here are some of our vital tips to help you gauge how an incentive program can help to boost your business!
Giving your program clearly-defined leadership will help to guide it and keep things organized. Appoint a person or team to take charge of your program and to coordinate communication between leadership and your incentive program account managers.
Analyze Pre-Incentive Situation
It may seem obvious, but it’s a crucial step in ROI measurement that many people forget: you need to have data on your business’s current situation before you can formulate your rewards strategy! Knowing exactly what you’re working with from the start will give your rewards program the direction it needs.
Set Smart Goals
Be sure to set SMART (specific, measurable, attainable, realistic, timely) goals. Aiming too high can discourage participants, but leaving the bar too low may not incentivize them enough. Find the healthy middle-ground.
Get an ROI Projection from Your Program Provider
Any incentive program provider worth its salt will also provide an ROI calculator—it’s the industry standard!
Use Incentive Reports and Analytics
Your incentive program platform should include documentation uploading capabilities that allow participants to upload and track invoices and receipts. The platform should also include activity reports that track participant data.
Hold Regular Program Reviews with Your Incentive Company
Your incentive program provider should be with you every step of the way. Regular meetings and updates should be a part of your quarterly schedule to monitor the vitality of your program.
Look for Signs of Success Beyond Sales Growth
It’s important to understand that sometimes numbers aren’t everything. Sales growth isn’t the only way to measure an incentive program’s impact; keep in mind that brand recognition, ratings, referrals, and improved work environments can all contribute to your business’s long-term success.