Award Programs: 6 Tips to More Success
Many companies are making final tweaks to their award programs as they roll them out for 2018. To assist this effort we thought we’d share some knowledge learned over the years for making award programs really work. The following are seven tips to help you get the most from award programs
Make Awards Truly Special
The less likely the participant would purchase the award normally (because he or she can’t justify it) the higher the value they will see in it and the more work they will put in to obtain it.
Consider Social Reinforcement Opportunities
To maximize social reinforcement, consider awards that offer an opportunity to remind peers of the award achievement. The greater the opportunity for social reinforcement the greater the value of the award to the participant. Social reinforcement makes earning the incentive more valuable and increases effort.
Communicate Awards As “Splurge”
Awards that program participants would likely not purchase on their own are more likely to attract the attention of colleagues, increasing the trophy value of the award.
Vary Award Types To Meet Diverse Needs
For each award program level, when participants can choose from a variety of awards, utility value perceptions are improved. Maximize utility value by offering incentives desired by people having diverse tastes.
Minimize “Loss Aversion”
If a cash award program is eliminated, any tangible, non-monetary award programs implemented in its place should be of greater perceived value. Because of this, it may be better to use a non-cash incentive in a newer program rather than replace a cash award program with a non-cash award program.
Consider Hidden Award Benefits
Your company might receive benefits from non-cash incentives that are less direct. For example, vacations might pay back in rested participants, or attract better talent. Well designed award programs can have many residual benefits.
Here’s wishing you the very best with your 2018 award programs. If you’re interested in learning more check out 360insights’ reward points programs, co-op advertising platform, or the many channel insights that can be gained from these solutions.