Attributed to the management guru Peter Drucker, the maxim “What gets measured gets done” is more than a saying … it’s a basic business truth. Fortunately, for companies that invest in loyalty or incentive programs, they are among the most measurable forms of business expenditure.
Managers should begin the process of building an incentive program by asking, and aswering, some basic questions:
- What program metrics are in place now? (they should be specific, measurable and relevant to your audience)
- What is the value proposition for the customer? for the organization? (work for a balance between your company and your target audience)
- How do we track the program’s costs? (can be as simple as an Excel spreadsheet, or a more sophisticated data analysis process, depending on the nature of the program)
- What reporting tools will be used to measure the program’s performance? (increasingly captured through web-based programs, be sure the process is documented and all stakeholders are trained)
- How will we measure the incremental return from the program? (returns can be measured in tangible gains, like increased revenue … or intangible progress, such as improved employee morale)
The due diligence required to answer these 5 questions before a program launches is not the “fun” part, and short cuts are tempting. However, if you’re a believer in the adage “what gets measured gets done”, the up-front investment of time will pay dividends of a more profitable and effective program