When Sales & Marketing Managementmagazine and the Society for Incentive Travel Excellence (SITE) Foundation initiated a comprehensive survey on the use of incentive travel, they knew that some of the most illuminating information would come from non-users of this motivational tool. The research provided valuable insights into why 55 percent of the 278 respondents stated they do not use incentive travel.
Why it’s shunned - The biggest takeaway from non-users was their reasoning for not using incentive travel. Cost and administrative problems, including the complexity of program design and implementation, were far and away the most common reasons cited. Nearly nine out of 10 non-users (88 percent) have never used an incentive travel program, and eight out of 10 (79 percent) have never considered using one. Fairness of implementation and variations on that theme were mentioned by a number of respondents as a reason they steer clear of incentive travel. Several mentioned employee preference for cash bonuses or profit sharing. (Read our upcoming November/December cover story on the effectiveness of non-cash incentives for the rebuttal to that.) Some cited a lack of information on incentive travel and its ROI. One respondent stated “not forward-thinking enough,” while another said curiously, “No one seems to deserve it.”
How they reward Non-users of incentive travel do use other incentives. The largest segment (35 percent) use cash, followed by gift cards (34 percent), merchandise (21 percent) and the nebulous “other rewards” (10 percent). Not surprisingly, respondents who said they currently use incentive travel also use other forms of recognition. Among this group, gift cards are used by 36 percent of respondents, merchandise by 31 percent, cash by 27 percent and 6 percent use “other incentives.”
Sales oriented Among users, incentive travel programs are primarily targeted to sales employees, both internally and independent channel partners. Eighty-two percent of users target salespeople. Service workers were a distant second at 34 percent. (The total exceeds 100 percent because some companies target more than one audience.) More than 88 percent of users reported that their primary program goal is geared toward sales objectives, and 57 percent said the goals change annually to meet changing business objectives.
Loyalty abounds Users are unwavering proponents of incentive travel. Forty-six percent have sponsored incentive travel programs for 10 or more years, while another 25 percent have used them for four to 10 years. That’s not surprising given the high marks these users give incentive travel. A whopping 95.5 percent state that their programs have been “very effective” or “effective” in achieving their objectives.
What users think Asked, “what differences have you noticed in the outcomes between travel and non-travel incentives,” one user of both stated, “Travel always gets us to our target revenue goals.” Another said, “Cash is easier
to implement within the sales team, but travel develops relationships and allows for sharing of effective business practices.” A third replied, “Travel has more cachet, and because I include spouses, it receives attention both in the office and at home.”
Can non-users be converted? Non-users were asked, “What would need to change in your organization for you to implement an incentive travel program?” Many responses focused on cost, tracking ROI and having the personnel to administer the program. Some commented that a change in management’s philosophy was necessary. Several felt they needed a larger sales force or even a larger company to warrant an incentive travel program, revealing a misunderstanding that these programs are only suitable for large sales teams. Incentive travel professionals emphasize that effective programs can be developed to fit the full spectrum of company size and revenue. A few respondents stated they are waiting for their employees or channel partners to express an interest.
Survey details: The online survey was developed by the Society for Incentive Travel Excellence (SITE) Foundation, a not-for-profit entity whose mission is to enhance the awareness and effectiveness of motivational experiences and incentive travel. TriMax Direct, an independent firm, emailed invitations to participate to readers of Sales & Marketing Managementmagazine, the publication’s e-newsletter database and its database of webinar attendees. Invitations were sent three times between July 14 and July 28, 2014. A total of 303 responses were received. After cleaning and removing blank records, there were 278 usable responses. Respondents represented a diverse range of B2B industries and included a balanced mix of small, medium and large companies.
Participants from Microsoft’s Gold Club 2013 event in Puerto Rico enjoyed a bike tour of old and new San Juan. Microsoft covers all expenses for its award winners and a companion, and it allows participants to bring their children at their own expense.
