Sports travel. Entertainment travel. Incentive travel.
Why are these becoming the preferred methods of rewarding customers and employees? Why are they so successful when it comes to building and cementing relationships?
Simple. Has anyone ever told you they had a bad time at the Super Bowl? Have you ever seen anyone who wasn’t excited about a four-night New York Theater tour?
People love to travel. They love to be part of the buzz that surrounds a mega-event like the Kentucky Derby. Reward a key supplier or motivated employee with a trip to Pebble Beach and you’ll create loyalty that money can’t buy – but travel can.
Who’s a good candidate?
The easy answer is Anyone. After all, who wouldn’t enjoy a trip to Maui or a weekend at The Masters.
But even looking at it in strict business terms, travel programs can help you reach such a wide range of goals, it follows that a wide range of people you have relationships with make good candidates for these trips.
It’s not only about courting prospects or rewarding employees, the traditional targets for these trips. And don’t get us wrong. Entertainment and incentive travel is still a great way to reach out to and build relationships with these audiences.
But think outside the box a little and you’ll find a number of other audiences that match up well with these trips. Audiences such as:
- Key vendors
- Regional and district management
- Retiring executives
- Birthday/anniversary acknowledgements
- Board members
- Lobbyists
- Hiring bonuses or other employment perks
- Promotion and contest winners
- Sales achievements
- Customer appreciation
- Executive compensation
- Annual retreats
- Backdrops to company meetings
- Award functions
Virtually anyone enjoys the kinds of trips we’re talking about. And you can brainstorm virtually any reason why they would help you reach your long-term, or even short-term, goals.
Money’s not the greatest motivator
Studies have shown that non-monetary incentives and rewards are stronger than monetary. At first, that sounds a little counterintuitive.
However, two-thirds of all executives interviewed believe that travel incentive programs are more memorable than cash-based ones. And nearly that many said they believe it’s easier to create a travel reward system than a monetary reward system.
The benefits go even deeper when you consider the mindsets of employees. Cash bonuses and incentives can quickly become expected. The bonuses are no longer considered a “bonus” but a part of their compensation package.
These studies indicate that particular incentives and rewards work better in specific circumstances. Depending on a company’s goals, it’s actually possible to match the type of incentive offered with desired results. For example, individual travel is effective for consumer promotions and sales incentives. On the other hand, group travel and cruises are effective as dealer incentives.
If you’re looking to improve customer service, build morale, and foster teamwork within an organization, you would want to consider travel certificates and special events, such as sports programs. Respondents reported that these result in the greatest efforts in internal motivational programs.
Success can be attested to both by corporations and workers. An overwhelming 92 percent of workers in the SITE Foundation study reported that they pushed harder to achieve their goals because of incentives. The same percentage of corporations reported that using incentives resulted in their objectives being surpassed, met, or partially met.
The bottom line is simple. Incentive travel is certainly popular and glamorous. But most importantly -- it works.Also, travel carries a certain cachet that sends a message of a job well done to both the employee traveling and employees who didn’t qualify.
Financial incentives become even thornier when potential customers, potential clients, and members of government bodies are involved. Ethics and laws make it much more feasible to use travel to build those relationships.
Group trips or solo trips?
Group travel is the traditional way of providing these incentives. Bonds can be forged between team members, between employees and management, and/or between your team and prospects.
In addition, group trips can be attractive financially, as expenses can be amortized over a number of trips and economies of scale achieved.
That said, Esoteric has created the structure and maintains the flexibility to make individual or small group trips just as cost-effective and valuable as those for larger groups. Sometimes there simply isn’t the budget or the need to send 25 or 50 people on the trip of a lifetime. For those situations – retirement, employment milestones, grand prize winners, executive perks – entertainment and incentive travel makes just as much sense, especially with its flexibility and affordability.
An expense? Or an investment?
If not handled properly, with a solid company that’s experienced and professional, entertainment and incentive travel can be neither an expense nor an investment. It can be a total waste.
But as part of a smart business program, travel is an investment, just as marketing, capitol improvements, or new business endeavors are.
Sure, they cost money. But when done wisely, the return on investment for your company will be immeasurable.
