Business Motivation: In The News

Recent research sponsored by the Forum for People Performance Management and Measurement and the Performance Improvement Council of the Incentive Marketing Association  underscores the link between Employee Lifetime Value (ELTV) and Customer Lifetime Value (CLTV).

A recent white paper, Employee Lifetime Value: The Critical Companion to Customer Lifetime Value, distills a portion of a comprehensive 45-page research report that explains how to view ELTV through a CLTV lens using several key constructs.  For example, 1) the benefits of linking ELTV metrics to decision-making processes such as HR systems for the allocation of training, specialized workplace opportunities and even bonuses and rewards, and 2) recognizing that ELTV is not always a given but can be influenced by proactive interventions (such as increased training and motivation programs). 

By using CLTV as a guide to better understand and assess ELTV, business managers and HR personnel can glean ever deeper insights into the one true factor that determines ultimate organizational success: people.  For a copy of the complete report, click here. Look for upcoming white papers addressing additional elements pertaining to ELTV on the Forum’s Web site:  www.performanceforum.org.

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For the last two years, the Trade Show Task Force of the Incentive Marketing Association (IMA) has explored ways to make incentive field trade shows more valuable for end-user buyers.  In late 2007, the Task Force retained Harris Interactive Inc., a marketing research firm, to conduct a survey to determine why end users who registered for the Motivation Show did not attend.  Through the survey, the IMA hoped to:

• Understand aspects of the tradeshow that are most appealing to potential attendees.
• Encourage potential attendees to learn more about the show and/or attend.
• Identify aspects of the direct mail promotion that are and are not appealing, compelling, and/or relevant.
• Explore impressions of the Motivation Show that are based on knowledge and/or experience.
• Explore reasons for not attending the show.
• Solicit suggestions for ways to increase attendance by improving the show’s overall value.

Time and money considerations turn out to be the most significant factors affecting attendance.  But the results also point to areas for improvement for tradeshow management and exhibitors. Click here for a detailed summary of the goals, methodology, and results of the survey.

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In an industry facing tremendous pressure, how do real estate agents market themselves to gain an edge?  The results of a recent survey by the Promotional Products Association International (PPAI) of attendees at the most recent National Association of Realtors Expo in Las Vegas suggest that nine out of ten realtors use promotional products as part of their marketing efforts.

As many as 95% of real estate agents say that promotional products are included in their agency budgets right from the beginning and purchased as needed.  And 70% of the survey participants rate promotional products as “effective” or “extremely effective.”

The top five purposes for the use of promotional products by real estate agents include:

• To increase name recognition (62%)
• To get new customers (57%)
• To generate goodwill (53%)
• To get referrals (52%)
• To increase sales (47%)

The overall result: “When you add the high-touch element of promotional products to the marketing mix,” says Stan Breckenridge, PPAI chairman and vice president of marketing for Moderne Glass Inc., “it is possible to reach each customer on an individual basis.  And that personal touch is extremely important when you’re helping people make the most important decision of lives.”

For more details on the study, contact Anne Lardner at 972-258-3031 or annel@ppai.org.

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Thanks to the work of the Forum for People Performance Management and Measurement at Northwestern University, corporations are recognizing the financial benefit of aligning traditional internal management disciplines -- organizational design, communications, incentive programs, and training -- with external marketing activities such as advertising and promotion, channel relationships, and distribution.  As Simon Barrow of People in Business states, “Tomorrow’s CEOs will spend more time on their organization's reputation as an employer than with the investment community, and fund managers will worry if they don't.” 

If your organization hasn’t yet jumped on the PPMM bandwagon, the Forum has published a white paper on how organizations can incorporate PPMM principles as part of their overall corporate strategy.  The paper details the seven key elements of the PPMM model:

• Organization-customer interface.
• Customer loyalty and attitudes.
• Behavior of channel partners.
• Constituent attitude/behavior.
• People performance practices.
• Leadership/strategic objectives.
• Organizational culture.

To review a copy of the Forum white paper, click here.

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Recognition Professionals International (RPI) recently announced the 2008 Best Practice recipients for best employee recognition programs—one of the highest honors awarded annually by RPI.  RPI fosters excellence in the recognition industry by ensuring that members are at the forefront of developments and practices in workforce recognition as an influential contributor to the company's bottom line. This year’s honorees have demonstrated excellence in achieving such recognition goals.

RPI’s 2008 Best Overall Award for an employee recognition program went to Cargill Inc. Cargill’s recognition efforts include a Global Recognition Steering Team to provide guidance for the company’s overall recognition strategy and execution.  It also sees recognition as a key factor in employee engagement, which it believes contributes directly to the company’s positive financial results.  Other RPI 2008 Best in Class award recipients include Scotiabank, TD Canada Trust, Bank of America, and Delta Air Lines.

For information on RPI or the 2008 Best Practice Awards, visit the RPI Web site at www.recognition.org.

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The Advertising Specialty Institute (ASI) recently announced results of its annual advertising specialties sales analysis indicating that industry revenues reached $19.6 billion in 2007 – up 5.4% from 2006 and setting a new record.

 Spending on advertising specialties, or promotional products -- items and incentives branded with a company logo or marketing message -- was 83% greater than radio advertising, 73% greater than Internet display ads, and nearly five times larger than outdoor advertising for the same period.  Industry increases also outpaced the 2.2% growth rate for the United States GDP.

For more information on ASI or its recent study, go to www.asicentral.com.

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Most executives anticipate the volume of domestic and international incentive travel to increase or remain stable over the next two years, according to an Incentive Research Federation survey. “The Effect of World Affairs on Incentive Travel” was conducted in late 2007 and polled incentive travel providers, corporate incentive travel buyers and suppliers of lodging and transportation. In addition to gleaning information about the attitudes of incentive travel professionals, respondents were queried about their perceptions of their clients’ incentive travel concerns. The top concerns are:

• Security/safety.
• Exchange rate of the U.S. dollar.
• Fear of terrorism.
• Deterioration of U.S. reputation abroad.
• Lack of trust in airline security.

These concerns don’t appear to have had a negative effect on incentive travel planning, however, since over 75% of respondents think their volume of domestic incentive travel will increase or remain unchanged over the next two years, and two-thirds think their volume of international incentive travel will increase or remain unchanged in the same time period.  More information on the study is available from the IRF, at www.TheIRF.org.

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The New York Incentive, Rewards & Recognition Show and Brand Engagement Conference (NYIRR “Brands” Show), which took place on May 7 and 8, was not only a successful event for exhibitors and participants -- its sponsors saw it as a turning point for the incentive industry.  According to Selling Communication Inc.’s Jim Kilmetis, the show’s executive director, “We’re attempting with our leading brand and incentive company partners to reposition the marketplace in a way that is more compelling and more in sync with the movement in corporate America toward greater brand engagement with internal and external customers.”

This year’s show had an array of exhibitors covering every facet of the incentive industry, and included the leading brands serving the reward and recognition field.  It had a slate ofnotable speakers offering a range of information and advice focusing on the prominent new theme of “People Powering Brands, Brands Powering People.”  Presentations ranged from the eminently practical, like creating a channel program or using clocks and watches in an incentive program, to the theoretical, and included some of the latest research and thinking on using recognition and rewards to stimulate employee engagement – and by extension, customer engagement.  In addition, attendees could spend time with some of the leading associations connected with the rewards and recognition industry, including the Incentive Marketing Association, the Incentive Research Foundation, and groups like the Human Capital Institute. 

According to Bruce Bolger of Selling Communications Inc., the integrated marketing and media company that sponsored the show, “The focus on brand engagement – ‘People Powering Brands, Brands Powering People’ – clearly attracted a high level of end-users from leading companies, as well as their agencies.  Going forward we want to position the show as part of an overall industry effort to take advantage of opportunities resulting from the shift from mass-marketing to target marketing, and the need to maximize long-term engagement with employees, channel partners, and customers.”

For information and show recaps, go to www.nyirr.com.

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