Transforming the Industry: - PowerPoint Presentation

Slide1

Transforming the Industry:Status of Non Cash Award Use in the U.S.

October 2011

Slide2

Agenda

Time

Topic

2. The WHAT: What vehicles are used?

3. The WHY: Why these vehicles are used

3. The WHO: Who

is most often rewarded with these types

4. The HOW MUCH: Thresholds

Slide3

TRANSFORMATION#1 Must first know where we’ve been.#2 How to best serve clients

3

Slide4

This Study Completed with Help of IFI

All Star Incentive MarketingHall Erickson IncO.C. TannerA.T. Cross Co.EGR International

Maritz

MotivAction

Rideu

Recognition

Ryman Marketing Services

4

Samsonite Corp.

Top Brand Inc.

Tumi

Inc.

Incentive Marketing Assoc.

IRF

PPAI

RPI

SITE

Slide5

On the Agenda

The StudyThe WHATThe WHYThe WHO

The HOW MUCH

5

Slide6

The StudyEnd Users/Buyers

Sample InventoryTarget AudienceProgram Rules:Award Type UsedAward Value

6

Slide7

7

Company Size Information

Slide8

What Award Vehicles are used?THE WHAT

8

Slide9

THE WHAT9

Cash

Travel

Merch

Card

1. Employee

37%

27%

48%

67%

2. Channel

17%

33%

56%

67%

Both

25%

57%

65%

61%

All Respondents

31%

37%

54%

65%

Slide10

Number of Award Types Used

10

Slide11

Use Only “this” Award Type

11

Slide12

Why are specific Awards selected ?THE WHY

12

Slide13

PRE-PAID CARDTRAVEL

Ease of useFlexibilityEase of AdministrationProvide Unique ExperiencesBuild loyalty to BrandEmotional Connection

Primary Reasons

13

Slide14

MERCHANDISECASH

Tangible ReminderTrophy ValueEmployee PreferencePrimary Reasons

14

Slide15

Award Usage by audienceTHE WHO

15

Slide16

Usage By Audience

16

Slide17

Use By Employee Level

LevelCash

Travel

Merch

Cards

Individuals

72%

68%

70%

65%

Supervisors

55%

37%

58%

56%

Managers:

Front-Line

53%

44%

55%

53%

Middle

45%

42%

51%

46%

Senior

36%

36%

36%

28%

17

Slide18

Use By Employee Level

18

Slide19

Use By Employee Function

Cash

Travel

Merch

Card

Sales

66%

77%

65%

61%

Operations/Mfg.

53%

24%

53%

47%

Customer Service

53%

29%

59%

47%

Marketing

45%

29%

50%

46%

Technology/IT

45%

26%

44%

39%

Human Resources

40%

21%

45%

41%

Finance/Accounting

42%

26%

40%

41%

19

Slide20

Use By Employee Function

20

Slide21

21

Use By Employee Function

Slide22

22

Use By Employee Function

Slide23

23

Use By Employee Function

Slide24

Travel Specific

24

Slide25

Travel Specific

In the past one to two years, what has happened to your

Travel budget?

25

Slide26

Average Award Value By Firm Size26

# of Employees

Cash

Travel

Merchandise

Cards

<

100

$760.71

$2,007.14

$148.35

$

94.48

101 to

1,000

$536.43

$2,672.73

$113.09

$103.68

1,001 to

5,000

$306.25

$2,542.86

$184.80

$107.22

5,001 to

10,000

$

1,920.67

$2,933.33

$236.50

$95.83

>

10,000

$

1,212.50

$5,946.78

$650.63

$431.33

ALL

$732.54

$3,115.34

$206.27

$133.30

Slide27

HOW MUCH27

Slide28

Average Award Value By Firm Size

28

$5,946

$2,007

$2,933

Slide29

Optimum Award Value By Type

ValueCash

Travel

Merchandise

Card

No Response

7.5%

14.5%

15.2%

12.6%

< $100

26.4%

3.2%

35.9%

49.5%

$101 - $500

32.1%

8.1%

34.8%

34.2%

$501 - $1000

18.9%

8.1%

9.8%

0.9%

$1000 - $5000

13.2%

46.8%

2.2%

0.9%

> $5000

1.9%

19.4%

2.2%

1.8%

29

Slide30

Optimum Award Value By Type

30

49.5%

46.8%

Slide31

Most Common Per Award Amt

Most Common

Average

Median

Cash

$732

$250

Travel

$3,115

$2,500

Merchandise

$206

$100

Cards

$240

$50

31

Slide32

Most Common Per Award Amt

Slide33

Award as % of Salary

Average

Median

Cash

7.8%

3%

Travel

6.0%

4.5%

Merchandise

7.2%

2%

Cards

7.9%

2%

33

Slide34

34

Award as % of Salary (

TippingPoint

)

Slide35

Value Determination35

Cash

Travel

Merch

Cards

Intuition

19%

16%

22%

31%

Experience

36%

37%

41%

30%

Observation

17%

32%

33%

20%

Data

19%

18%

10%

8%

Experiment

13%

10%

9%

7%

Slide36

Value Determination

36

Slide37

What Results Are You Experiencing?

37

Slide38

38

Give us “The One Big Thing”