93% of top-performing companies’ executives believe that non-cash incentives grant their business a competitive advantage.
That’s right, almost every business leader of companies in the top 20% of any vertical have said that they depend on non-cash incentives to out-win their competitors.
If your business is not in the top 20%, you should be thinking of how you can start and maintain an effective incentive travel program.
And if you are already a top-performing business, you should be asking yourself how can you improve.
What is Incentive Travel? Intro, Tips & More
What is Incentive Travel
Incentive travel is one of the most popular non-cash awards that’s used to motivate sales staff, partners, and even customers. It is the most experiential form of non-cash based incentives and involves a luxury-style getaway for your top performers.
It can be an annual, or bi-annual trip that typically lasts 3 to 7 days and provides a white-glove service for every aspect of the event for the program winner and their +1, including:
- Lavish destination
- Luxury hotel
- Included allowance
- Nightly dine-around options
- Air travel & transportation
- Awards ceremony
- Central theme
- On-site staffing
You get the idea: incentive travel programs are an enormous amount of work to plan and execute, beginning over a year in advance…but the awards are enormous.
A professionally planned and executed incentive trip has an almost 20% increase in productivity, creating an ROI of 112%!!
Every year C-levels huddle together to talk about how they can improve sales by 3, 5, possibly even 10%. If you aren’t already leveraging Incentive Travel, it can be one of the most straightforward ways to hit your annual goals, and then some.
Over 50% of companies that use non-cash incentives use a sales incentive travel program to boost drive revenue.
Organizations will usually announce their destination and resort at the tail-end of their sales kickoff, and set forth the requirements.
This caps off your rally event with a powerful and motivational sales goal that your sales team will strive for over the next 12 months.
Channel incentive travel programs are experiences provided by a manufacturer to a retailer for meeting their predefined goals.
While your sales staff is your in-house source of income, your business might also depend on a large source revenue from channel sources.
Channel partners often have multiple products or services in their portfolio, even your competitors’; offering non-cash based incentives are an amazing way to ‘move the needle’ in your favor.
Why Incentive Travel Works
A professionally executed program alters human behavior. As we all know, motivation is a powerful thing. It can completely change our perspective on why something is important, and how bad we want it.
The benefits of an incentive travel program are numerous, and affect behavior through several angles:
Recognition & Trophy Value
As a sales guy, making the club is the ultimate goal. Everyone’s quotas and associated ‘earnings packages’ usually vary, hitting the qualifying mark for President’s club is universal for all sales staff (ex. 115% of quota).
This creates a competitive nature that reps actively discuss, as well as management. It doesn’t matter what level you are as a sales rep, on the lead generation team, inside sales, field sales, or management.
Because of this, almost every salesperson trying to hit the qualifying mark for their incentive trip thinks of the actual status first, and the money comes after.
Cash evaporates quickly, but trips create memories. Those memories get tied to your business creating loyalty, motivation, and appreciation.
This is a large reason why top earners tend to stick around longer at companies that provide incentive programs.
If your company is not already in the top 20% of your business vertical, incentive travel should be one of the first items your sales leadership discusses for their annual goal-setting meetings.
A professionally planned trip produces 112% ROI on average, and an increase in almost 20% of productivity.
Don’t be the company that has the mindset of, ‘We can’t afford to have a president’s club this year’. Based on study findings, your business should be asking, ‘How can we afford not to have an incentive travel program this year?’
If you are looking for help with your program, look no further! Click here to get a call scheduled with our team to discuss further.
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