August 8th, 2009
It pays to encourage people to spread the word about your business.
Q: How important is it to offer some type of incentive for people who give me referrals?
A: Everybody loves referrals, and one thing I’ve learned is that they also love to be recognized for giving referrals.
In a survey I conducted with Robert Davis (published in our book business Business By Referral), incentives were found to be one of the most important methods of generating referrals for successful business professionals. Incentives can range from simple recognition, such as a thank you, to monetary rewards based on business generated. Nearly one-quarter of all respondents in this international survey considered incentives an effective generator of referrals.
Creativity is the key to any good incentive program. People just naturally like to help each other, but especially when they know their efforts are successful. Let your contact know when a referral he or she has made comes through and be as creative as you can.
I’ve heard many novel ways businesspeople reward those who send them referrals. A female business consultant sends bouquets of flowers to men. A music storeowner sends concert tickets. A financial planner sends change purses and money clips.
I know of an accountant who thanks those who successfully refer a client to him by paying for a dinner for two at an exclusive restaurant located at least an hour drive from their homes. This approach firmly plants the accountant in the minds of his referral sources: They won’t be able to use it right away, because the distance requires that they plan for it. As the date approaches, because it has been planned, they’ll be talking about it (and probably about the accountant). Later, when the referring party runs into someone else who might need an accountant, who will he recommend?
One realtor I met in Northern California told me that for almost six years, he offered a $100 finder’s fee to anyone giving him a referral that resulted in a listing or sale. Yet during that time, he had only given away about a dozen finder’s fees. He decided it was time to try another kind of incentive.
Since he lived on a large parcel of land in prime wine country, he had begun growing grapes in his own vineyard. A thought soon occurred to him: Why not take the next step? He began processing the grapes and bottling his own special vintage wine. After the first harvest, he had a graphic artist design a beautiful label, which he affixed to each bottle. He told all his friends that he did not sell this wine; he gave it as a gift to anyone who provided him with a bona fide referral.
He gave away dozens of cases in the first three years-half the time it took him to give away a dozen cash finder’s fees. Yet each bottle cost him less than $10 to produce. This special vintage wine makes him infinitely more money than giving away a handful of $100 finder’s fees.
It sometimes amazes me, even now, how something as simple as a bottle of wine can be such a powerful incentive for people to give you referrals. But the explanation is really quite simple: It’s special. A bottle of wine that can’t be bought can be worth 10 times what it cost to produce when it’s traded for something as valuable as a business referral.
Remember, finding the right incentive is a big challenge-especially if you want to score big by building word-of-mouth business. To make it easier on yourself, get opinions and feedback from others who have a significant interest in your success.
Don’t underestimate the value of recognizing the people who send you business. A well-thought-out incentive program will add much to your word-of-mouth program.
Ivan Misner is the founder and CEO of Business Network International (BNI), which has more than 2,900 chapters throughout the world. He is also the author of five books, including his New York Times bestseller, Masters of Networking, as well as Entrepreneur Press’ forthcoming Masters of Success.
The opinions expressed in this column are those of the author, not of Entrepreneur.com. All answers are intended to be general in nature, without regard to specific geographical areas or circumstances, and should only be relied upon after consulting an appropriate expert, such as an attorney or accountant.
Tags: corporate incentives, incentive, incentive program, incentives
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June 12th, 2009
Flexibility of the little guy is king during a recession. Small companies and entrepreneurs have an opportunity to be flexible and move quickly. Large companies with multiple layers of decision makers and share holders are not able to move as quickly reacting to swift changes in theirs communities.
Our stock markets today are proof positive that smaller healthy companies have the agility to survive. Stock values of big companies continue to fall while smaller company stock begins to soar. It is a good time for entrepreneurs because the rules are changing and their audience is growing because investors that once looked primarily at the big companies now have the incentive to look at them.
Not everyone has the same experience during a recession. For example a 3 percent drop in aggregate income does not mean that peoople’s salaries with drop by 3 percent. Unfortunately, some will lose their entire paycheck, others will remain the same remaining at the status quo and then there are the fortunate few who will gain.
If you look back to during the 80’s when we experienced our last deep recession you will find that many prosperous companies were born during those years. Those that dreamed of their own business, a new product or service had a perfect time to test fulfill their dreams because many were unemployed themselves. Their incentive? Their passionate desire to jump in and give it a go.
The meaning of an entrpreneur is one who takes risks to create a business. An individual who looks for opportunities amongst the weeds. It is not easy but these times do present opportunity to act immediately on ideas and win.
If one looks around you will see that practically everything is on sales. Airline ticket, furniture and even Botox. If an entrepreneur wants to open a store, rent is more affordable then ever, if you are needing employees people are looking for work at lower wages and more businesses are considering marketing collaboration relationships.
Entrpreneurs are helping us to round the cycle to better times ahead.
Tags: corporate incentives, incentive, incentive program, incentives
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June 9th, 2009
Collaboration is feeding company bottom lines all over the United States. Companies with a common customer demographics and goals are finding great success with their team approach to marketing campaigns. Organizations look for non-competing partners to advertise their complimentary products or services finding success without sacrificing their marketing budget.
Recently, I noticed a wonderful partnership with AFLAC, Disney and Pixar’s movie “UP” on a television commercial. It was a terrific union of the beloved AFLAC duck and characters from the movie that is about a boy along with his neighbor experiencing great adventure. It was a playful and entertaining way to advertise their products to their shared audience.
Non-profits in some areas are discovering the same benefits of collaboration. To obtain grants, some agencies are now requiring collaboration before providing funds. In April, more than 30 organization leaders met to discuss opportunities amongst their individual non-profit organizations, many for the first time.
The stakes are high this years as costs continue to rise and donations fall. People are donating but not at near the levels as they were at three years ago. Horse riding therapies and swimming lessons for the disabled are at risk of being cut for the first time in decades. Women’s and children abusive relief organizations are finding challenges are almost overwhelming.
For thousands, their families have the toughest challenge with many unemployed or facing unemployment. Churches are at their maximum donating food and assisting with the costs of utilities.
Is there a silver during this crisis? Laid off workers have volunteered their time and elbow grease to deliver food or provide other assistance to help others in their communities. Non-profit leaders are seeking creative and low cost incentive programs answering the “what’s in it for me” question. Collaboration and personal appeals from organization leaders reaching out to other organizations is what got letter carriers to participate in a food drive this past May picking up food along their daily routes.
Showing love is basic to our country’s Christian faith. Helping others is one of the greatest gifts a Christian can give to someone, so why not make a difference now before smaller local charities are forced to close. Put aside your organization’s egos working together with others to bring food or clothing to people in desparate need?
Be positive as you work with good intention, it will create an energy for giving. Every member of your organization was hired to help others, tap into their creativity. Ask those that receive to provide ideas and solutions, they will appreciate your apprciation of their value. This challenge will pass, be tenacious and have faith that you will experience increased donations.
Tags: incentive program, incentives, increase donations, retain donors
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June 3rd, 2009
Engage and get fired-up! Today is another day to look for opportunities and make it happen. You may not make a fortune but if you treat each day as a deposit into your success piggy bank, soon you will be rewarded.
Worry is a cloud that does not allow us view possibilities. We focus so intently on worry that we neglect our family, our business and ourselves. Those focuses are the strength of our soul. When we feel we have support, the sky is the limit. We should be proactive and react when change is needed. Get mad when there is injustice, take a breath and be grateful for the gifts of life.
For your business to survive, you must feel passion and share it with your employees each day. Your positive energy will become contagious and get everyone engaged. A smile alone say it all. Find joy in your business, ask your employees to write their top 5 reasons they enjoy their job and ideas on how to increase business. Sincerely recognize your employees and customer for their commitment.
Recognize the fear of your sales team:
Fear of Rejection - A sales person’s biggest downer is rejection. No return phone call, a great sale that vanished or being hung up on for the 10th time. Surveys have shown that a sales person will not contact a prospect again if they have been rejected 3 times before. These same situations are often opportunities.
Fear of Uncertainity- Will a sales person be successful this week, this monthor this year? The best remedy for uncertainity is constant and open communication withyou. Acknowledge difficulties, celebrate up small successes with incentives and stay positive.
Fear of Success – Unbelievably true. Since it may be new to a sales person, they are not sure what it looks and feel like. Will the bar now be raised up to the stars with greater expectations? Get them excited and let them know that you understand that success does not always come easy and that you will help them during the slower, less successful times.
Fear of Failure – This fear can be almost paralyzing. Work and review sales tool with employees because doing nothing only gaurantees failure. If an employee works at it each day, the possibilities and creates synergies leading to certain success amongst the group.
How well a company does during challenging times is greatly determined by the reaction of its leadership. Do you thank and offer an incentive program to employees to keep them energized and focused on sales goals? Surviving is dependent upon maximizing your competitive advantage, which can only be achieved by our human assets, our employees.
Tags: incentive, incentive program, incentives, recognition, reward
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May 9th, 2009
Tom Peters called intuition our greatest gift. It’s the feeling we get when what we are seeing doesn’t match up with the facts we think we know; it’s the sudden move we make without thinking that saves us from disaster; it’s the voice that tells us the truth rather than what we would like to hear.
Intuition is the ability to make quick and sound decisions based on a minimum of information. For instance, take a look at this paragraph…
Cna yuo raed this? I cdn’uolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonemnel pweor of the hmuan mnid, aoccdrnig to a rsereeachr at Cmabrigde Uinervtisy, it dseno’t mtaetr in waht oerdr the ltteres in a wrod are, the olny iproamtnt tihng is taht the frsit and last ltteers be in the rghit pclae. The rset can be a taotl mses and you can still raed it whotuit a pboerlm. This is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Azanmig, huh? Yaeh, and I awlyas tghuhot slpeling was ipmorantt!
Isn’t it astounding how easily we can decipher words with information that is ambiguous, garbled, or less than complete? We are wired to see underlying patterns, fill in the gaps, straighten out the miscues, and discover the hidden meanings. The same is true of our innate ability to make decisions.
Applying the 80/20 Principle to our thinking can help us make smarter, faster, more intuitive decisions. The 80/20 Principle (also known as the Pareto Principle) is pervasive in our world:
• 80% of traffic jams occur on 20% of roads.
• 80% of beer is consumed by 20% of drinkers.
• 80% of classroom participation comes from 20% of students.
• 80% of profits come from 20% of customers.
In most situations, you can gather 80 percent of the relevant information in the first 20 percent of the time available. Generally, the remaining 20 percent of the data (which would take the remaining 80 percent of your time to obtain) would not substantially improve the quality of your decision. Your intuition is good enough to organize the data and fill in the gaps, just as it did in those nonsense paragraphs a few pages back.
Specifically, here’s how you might apply the 80/20 Principle to your next big decision. First, identify the top five pieces of information you need to make the decision. Then, decide which four of these five are highest in priority. Once you’ve gathered this information, you will have roughly 80 percent of the information you need, and the remaining 20 percent is less important. Now, harness all of your experience and your intuition to fill in the blanks and make a great decision-even faster!
Tags: incentive program, incentives, rewards
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May 5th, 2009
Companies everywhere are utilizing their Call Centers as frontline sales teams finding real benefit in capturing the customer’s attention from a call that the customer themselves initiate. Organizations are finding more and more that if they sell to their customers they build greater commitment and increase their referral business. Larege costly sales teams are reduced in size and the need for a call to be handed off to another representative is deminished reducing telephone costs.
Most departments that carry dual responsibilities of customer service and sales are doing so with little to no sales training, without recruiting for sales skills and with no incentive program. Goals are often not clear and the “what is in it for me” question is left unanswered for both the customer and the employee.
Call Centers today still primarily focus on Average Speed of Answer (ASA) and Service Level Agreements (SLA’s) getting people on and off the phone in record time. The mindset of call center solutions is changing with developments of software on the horizon to incorporate the sales piece into the equation.
Call Center Trends
Decentralized structuring provide the greatest use of people.
The use of email and self-service has provided ease of service but can circumvent the opportunity to sell.
There has been a spot light shined on quality and resources without compromising costs.
Complexity of products and services continue to grow.
Customers are becoming more demanding.
“Home shoring” with work from home representatives.
Regardless of the type of Call Center that you manage, Morale is paramount. Merriam-Webster defines morale as “the mental and emotional condition (as of enthusiasm, confidence or loyalty) with regard to the task at hand.”
Recognition and rewards are an important key to any successful Call Center but finding the right incentive can be tough. Ages and interest of course vary. The best incentive is really their choice of incentive. A one size that truly fits all are internet based reward programs offer all the same merchandise, travel and sporting events that we all love on online today!
Highlights of the Points Rewards Programs:
- Seamless incentives page that continually brands your organization
- Each participant’s email tracks accumulated points and balances
- Send broadcast emails to announce a new promotion or call for action
- Select your choice of online retailers by locations, products or services
- Set a point reward calendar for birthdays or company anniversaries
- Maintain a personal touch with a personalized communication
- Learn what promotions and incentives were a success using provided reports
Organizations that attach any loyalty significance to such an interaction is going to obtain their goals and create an environment that communicates quality service and builds customer loyalty. Sales will increase and employees will feel that they are benefiting their company.
Tags: crm, CRM incentive, incentive, incentive program, incentives, point rewards, rewards
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