A new survey of small businesses reveals high levels of success with merchandise incentive programs. Small businesses believe that merchandise incentives improve morale (82%), are an effective motivator (80%) and are more memorable than cash rewards (61%).
The IMRA Small Business Merchandise Study, produced by the Incentive Manufacturers and Representatives Alliance (IMRA) through a grant to the Incentive Research Foundation (IRF), examined how the small business market used merchandise reward incentive programs for salespeople, employees, distributors and customers. Small businesses were defined as companies with between $1 million and $50 million in annual sales, which represented more than $16 billion in merchandise spend.
Key findings from the survey:
• The majority of small businesses reported using merchandise for reward/recognition of employees (89%), salespeople (87%), distributors (83%) and customers (80%)
• Small businesses provide top merchandise rewards for a variety of objectives, including customer gifts (60%), top performers (59%) and sales quotas (53%)
• Nearly half (47%) of small businesses using merchandise have budgets of $10,000 or more, and many report their budgets are increasing
• Many different types of merchandise are used, and the top types of merchandise used by small businesses are apparel (76%), food & beverage (70%), electronics (58%), writing instruments (57%) and sporting goods (53%)
• Most small businesses often source the merchandise they use for rewards online (76%) and/or from retailers (61%)
The study reveals that small-business owners are generally unfamiliar with the services and advantages a merchandise representative can provide — a detail that IMRA President Ted Moravec wants to change. “Our IMRA merchandise representatives and suppliers dedicated to serving this market give the business owners access to experts who understand their needs, plus a one-stop shop for hundreds of brands and tens of thousands of products at below-retail cost to recognize and reward their employees, customers and partners.”
The full survey report is available under the Business Resources tab at IMRAonline.org.
