According to a Travel & Merchandise Incentive study conducted in early 2007 by the Incentive Federation “The incentive industry is a $46 Billion business including travel and merchandise incentives.” The Incentive Federation recommends, “Companies struggling to find efficient and cost effective business incentives should consider a business development strategy that is flourishing across myriad industries: travel and merchandise incentives, now a $46 billion industry” as stated above.
2007 Incentive Federation Travel & Merchandise Incentive Study Summary Findings:
- Incentive travel is seen as an investment by 85% of all end-users in the study. Merchandise incentives are seen as an investment by more than three-fourths of respondents.
- Thirty-four percent of U.S. companies used either incentive travel or merchandise incentives in 2006. Almost one third (31%) of companies used merchandise incentives while 10% used incentive travel.
- Close to half (48%) of companies with revenue over $100 million use merchandise incentives and just under a quarter (24%) of these companies take advantage of incentive travel.
- Merchandise incentives are most often used for non-sales employee recognition and business gifts.
- The typical budget for merchandise incentives last year was $119,008. Almost half of the merchandise incentive users spent between $100,000 and $500,000.
Listed below are valuable articles that will provide you with knowledge and legitimacy for the strategy for using incentive merchandise to achieve your marketing goals. These articles are provided with permission from the Incentive Marketing Association of which Premium Works is a proud member.
Basic Principles:
- The Linkage of Incentive Programs to Performance
- How to Develop an Incentive Program
- 10 Steps to an effective ROI Incentive Program
Award Selection & Administration:
- Motivational Merchandise ROI Measures
- Cash vs. Merchandise – The Age old Question
- Why do Life Style Incentives Work?
Non Sales Employee Incentives
- The Economics of Employee Retention
- How Merchandise Incentives can improve Moral, Retention, Recruiting & All Around Good Will
- Why Incentive-Based Safety Programs Work-helpful Advise on How to Start
Sales & Channel Partner Program
- The Sweet Sound of Sales Success
- Using Incentive Programs to Boast Sales
- Making the Case for Sales Incentives to the Tune of 10% RO
Consumer Incentive Programs
- Designing Effective Consumer Incentive Programs
Corporate Gift Giving
- Corporate Gift Giving is the Ultimate form of Target Marketing
- Gift Selection Guidelines
Additional Topics
- Overview of Tax Regulations