1 / 9

Why rewards are better incentives - 212F AU & NZ

Here are some reasons as to why offering money is less effective as an engagement and incentive strategy when we compare it to rewards.<br>

212F
Download Presentation

Why rewards are better incentives - 212F AU & NZ

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Why rewards are better incentives? - 212F AU & NZ 212F

  2. Rewards Programs This time of the year is key for businesses as it’s time to set the tone for the year ahead in terms of sales and marketing activities. All sorts of incentives are on the table for discussion. However, something to think about is that money is often used as a way to entice re-sellers, dealers and channel partners to keep them engaged whilst driving business and it’s not always right.

  3. Why rewards are better incentives than money? Here are some reasons as to why offering money is less effective as an engagement and incentive strategy when we compare it to rewards. Expected Loss of value Demotivator Trophy value Low impact

  4. Expected Loss of value Why rewards are better incentives? A monetary benefit comes with a business relationship. expected and it offers nothing different to what commissions offer, or the margin partners can draw from your product, plus every vendor or manufacturer offer financial benefits as part of the relationship structure. In short, money is just considered as income and if your partners are not drawing the required income to do business with you, then incentive offers shouldn’t be in the table yet. When you offer, say $200 as an incentive, people will think of paying invoices, utilities and other daily expenses with that money. But a reward such as a merchandise with an RRP higher than purchased for even less will have a much higher value in perception. people think of “what can I do to get that reward?”. It is piece of $200 and This makes

  5. 212F Demotivator Trophy value Likewise, when you offer cash people focus on the money rather than on thinking about the objectives of the incentive. Feeling valued and rewarded for achieving things is far more motivating than just being paid for the job. When people feel valued, they concentrate on the work rather than the money. When was the last time that someone showed you their bank account or pay- check? But… when someone wins an award, not only they will tell everyone they know, but many will join the celebration and show how proud they are. Rewards make you feel important and part of the group that is rewarding you.

  6. Low impact A financial benefit is often transferred into a bank account. Just as any rebate, commission or discount, it is just a transaction. Rewards, on the other hand, are presented, they feel good and provide winners with bragging rights, they are remembered, and the effects are motivation, engagement, commitment, loyalty… and more.

  7. Incentive that engages incentive participants. In this context, we can say that money is not a tangible incentive that engages incentive participants. Money incentives can immediately become part of the business outgoings and an accounting matter. If offered to a person, it is most likely that it will be used to pay utilities and other personal expenses and for many, it’s like playing catch up with salary. Offering a range of tangible incentives like merchandise or travel incentives can have a greater impact on your relationship with re-sellers, distributors and channel partners.

  8. Source https://212f.com/why-rewards-are-better-incentives/

  9. LET’S KEEP IN TOUCH MOBILE +61 3 8620 7820 ADDRESS Level 7 606 St Kilda Road Melbourne VIC Australia 3004

More Related