Archive for the Incentive Category

With the number of cell phone subscribers in the world approaching 5 billion, more people have access to a phone than to good sanitation.

Monday, April 19th, 2010

 

What’s that got to do with motivation?

There was a recent report from the United Nations that stated that the number of cell phone subscribers in the world is just about to pass 5 billion. By their reckoning, more people will have a cell phone than have access to clean sanitation.

What does that tell us about the motivation of human beings? In all my years of devising reward, recognition and incentive programs, I have always urged clients to think about what I call the “Three A’s” when it comes to establishing what is going to motivate your audience.

The first A is for Achievability. If someone looks at a program and thinks, ‘I am never going to achieve that!’, then they are unlikely to subscribe to the objectives of the program and it has failed at the first hurdle. The solution is to set the objectives at an achievable level and push them up as participants begin to achieve. It’s a bit like the high jump in athletics. More valuably, it gives the program manager the opportunities to keep the program interesting and engaging by continuously refocusing on the objectives.

From a cell phones perspective, the third world is an interesting environment. The Financial Times recently reported that Vodafone is launching a simple ‘phone only’ application for certain African countries that retails for around $10. Even with some of the frighteningly low per capita incomes in Africa, that has to be achievable. It’s an interesting contrast to the richer nations where the humble cell phone is becoming a thing of the past – everyone wants to pay more for an iPhone, BlackBerry or iPad.

The second A is for Aspiration. I always encourage clients to take the mundane out of their reward choice on an incentive program. That’s why cash is such a bad currency for these types of program – it just goes into cash-flow and we don’t feel good about using our reward to pay for the groceries, a parking ticket or, dare I say it, a new toilet. It’s so much better to work towards something you really aspire to – travel, the latest laptop or a cell phone.

The last A is for Appropriateness. I remember a few years ago there was outrage when one company was offering cosmetic surgery as a reward. We’ve had companies ask us to remove alcohol from the reward choice. Others feel it inappropriate to offer competitors products.

All of these are valid reasons but where does that leave the basic sanitation. Appropriate maybe, but when you don’t have very much in the first place, possibly not an aspiration or achievable.

Steve.

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Appropriate ways to motivate your employees

Monday, January 25th, 2010

I was recently reading an interview with Jeffrey Katzenberg, (he was the CEO of Disney, ousted by family members I seem to recall and is the ‘K’ in the DreamWorks SKG film company – the ‘S’ is Steven Spielberg and ‘G’ is David Geffen if you were wondering!), where the interviewer asks him to comment on his legendry work ethic and what he expects of others who work for him. His reply: ‘If you don’t come in Saturday, don’t bother coming in Sunday’. That made me ask myself the question, ‘How does that relate to what we at Grass Roots promote in the performance improvement industry?’

Not very well, I think. Quite apart from the work-life balance concept, in our world we work with employers to develop programs that positively improve behavior and drive performance by motivating and recognizing their employees. There is still a school of thought out there that says, ‘they’re paid a salary to come to work so why should I do anything else?’, although I’m pleased to say we see less and less of that attitude. That said, with the popularity of programs such as The Apprentice that relies on the ‘You’re Fired!’ approach, we may not have come as far as I would have hoped.

I always think that when setting objectives for employees during their working lives, there are three properties we need to strive for. They are what I call The Three A’s – Aspiration, Achievability and Appropriateness.

With aspiration, we need to set goals and objectives that employees feel they want to achieve. I see many contact centers introduce programs that focus on productivity – how many calls you handle in an hour, what your wrap up time is, how much CRM data did you capture from the customer. There’s nothing wrong with those objectives as they will reflect the business drivers but let’s be honest, working in a contact center can be a pretty thankless existence. If that’s all you’re measured on, it’s no wonder the staff turnover rates in the contact center industry are so high. Why not focus on delighting customers, making customers feel they have been treated well or their questions answered fully. Then the customers thank our workers, they will feel good about themselves and proud of their roles. They will aspire to delight more and more and productivity will probably exceed the objectives we set earlier.

On achievability, I have to tell you the story about the founder of a mobile phone retailer client we worked for a few years ago. This guy was a self made billionaire and at heart he was a pure salesman. His turnover of staff in sales was catastrophic, exceeding 100%. Theoretically he was losing and replacing his entire salesforce every year – he employed over 6000 sales staff! He wanted us to tell him why so we took a look at the way he ran the business. Once a year he would hold a conference for all his sales staff – he would walk onto the stage in a cloud of puffing dry ice, flanked by two heavies. In each arm he held a glass brief case which was hand cuffed to his wrists and clearly containing dollar bills. He would hold the cases in the air and proudly announce, ‘There’s a million dollars in these cases. Do well and you could earn this next year’. The crowd would roar in appreciation.

I asked his HR guy some questions. How many of the 6000 salesforce earned a million dollars last year? One. How many earned half a million? None. How many earned a quarter of a million? One. And so we went on. The reality was that the vast majority of the 6000 took home less than $20,000 a year. What he was presenting to them was not far off promising they would win the lottery. This was just one of his unfortunate management styles. Needless to say, it was totally unachievable and sales personnel left his company in their droves.

Finally, appropriateness and I think this is where Mr. Katzenberg comes in. If you present your employees with something that is inappropriate, they will not be motivated. I’m sure he was being a bit tongue in cheek with his ‘Saturday, Sunday’ routine but these people do exist. Look out for them! As for the mobile phone billionaire, he sold the business and last I heard he was floating around the world on his yacht.

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So what were the big stories at the 2010 International Consumer Electronics Show (CES) in Las Vegas?

Monday, January 11th, 2010

Overwhelmingly everyone was talking about Apps. For those of you not yet addicted to your Apple iPhone, and increasingly the BlackBerry, Apps are simple software applications designed to run on your smart phone and specifically to fulfill a single requirement. You download them from the Internet. Apple has a whole App Store with thousands available. Be it ordering a pizza, checking your stock prices or using Twitter and Facebook from your smart phone, there is an App for just about everything. In fact, someone told me about an App called DrunkDial, (I think that’s what it was called). You install it on your phone and connect it to the phone numbers of friends you have a tendency to call when you’ve had one too many and potentially embarrass or compromise yourself. Launch DrunkDial when you hit the bar and bingo, it stops you dialing those unfortunate friends.

Another story was of the two software engineers who had developed an App called The Moron Test in their spare time – it lets you know how stupid you really are! Now it’s generating enough monthly revenues to allow them to quit their jobs.

Apps are big business. Some are free, some you pay for and there’s a whole industry developing them for the iPhone. BlackBerry are fast trying to catch up and were showing there Alliance Portal at the show (developed for BlackBerry by Grass Roots I hasten to add). The Portal is a social network type environment where developers can share ideas and link to BlackBerry to promote their Apps and wares to the growing army of BlackBerry users. I read that Steve Jobs of Apple was not that enthusiastic about Apps when the iPhone was launch a few years ago – now Apps form a central plank to the Apple iPhone strategy as it fights for dominance with BlackBerry, the emergence of Google Android and the entrance of players such as Microsoft and Dell into the smart phone market.

I read in a recent Financial Times article that they estimate that there are currently over 100,000 people trying to develop an App. Obviously some of them will be huge successes. Others will fall by the wayside unnoticed. I was pondering this new world and it took me back to my teens. As a teenager, I was obsessed by pop music. In those days, the 45rpm single was king and any connected teenager could tell you what was number 1 in the charts and which was this weeks fastest mover or highest new entry. Back then in the UK, always a hot bed for new talent, as many 600 singles were released a week by aspiring rock stars. Most never even made it to a play on the radio, some were the launch pads for great British acts such as Tears for Fears, the Clash and the Pet Shop Boys, (depending on your musical taste, of course). I suppose Apps could be seen as the current day pop singles. Toggling through my iPod as I sit on my flight back from Las Vegas to find something to listen to I can’t help feeling that in 20 plus years time, my kids will not be toggling through their smart phones to find that classic App from their teens! A sign of the disposable world we live in.

So where does that leave the motivation and incentives industry? For me, the core of any successful incentive or loyalty program has to be the communications. If you go back to the roots of our industry in direct marketing, think about the process that you as consumers are engaged. I often use what I call the ‘cornflake packet’ example. You get up in the morning, sit down for breakfast and you choose cornflakes. As you work your way through your serving, you glance at the packet on the table. There’s an offer flashed on the front so you pick the packet up and turn it around to read more about the offer. It could be a free flight, a two for one offer or in today’s world maybe a free App. You read about how you participate. If we haven’t got it in 20 or 30 seconds, we’re back working on the bowl of cornflakes in front of us.

That’s the challenge faced by any incentive program, be it for employees, the channel or consumers. The boom in social networking – MySpace, Facebook, Twitter, LinkedIn and the rest, offers us a huge opportunity to improve the way we use communications as part of these programs. With these new technologies, our program participants are now quickly accessible in a very cost effective and personal way. At Grass Roots we’ve already started experimenting how we can link these applications to the programs we run for our clients. The BlackBerry Alliance Portal is just one example and we’re getting interesting and very encouraging results.

So are Apps the new pop charts? Well all I know that is if you love great music with a great bass line as I do try the new Dr Dre headphones launched by Monster at 2010 CES. http://www.geek.com/articles/gadgets/review-beats-by-dr-dre-headphones-20080730/.

Rock n roll!

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How we’re helping the Consumer Electronics industry

Thursday, December 17th, 2009

There’s a very nice newsfactor.com article on how we’re helping the Consumer Electronics industry find efficient ways of managing increasingly complex distribution channels in today’s economy. Read it and let me know what you think.

The leaders in CE utilize Grass Roots’ global channel performance improvement software to achieve a positive influence on consumer attitudes and behaviors, which has been proven to drive employee engagement, brand recognition, loyalty, sales and productivity Relevant Products/Services.

We’ll be in Las Vegas for CES 2010 of course, offering demonstrations of our brand new Helix3 platform. Hopefully we can see some of you there. Stop by the booth and say hi.

Cheers!

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