Non-Cash Incentives to Boost Sales

 I came across these interesting findings that supports the fact that using non-cash incentive does a great deal in increasing sales and also a fantastic method to use as part of your customer retention and employee benefit programs. Mind blowing facts and figures...

• Over 65% of business owners strongly agree that "travel awards and merchandise are remembered longer than cash payments and that you can build a more exciting and memorable program around travel and merchandise than you can with cash." 
  Study conducted by Incentive Federation, USA

• Loyal customers not only spend more on each visit, but also are twice as likely to refer a new customer. Loyalty is the key to growth. Fred Reichheld, research author of the book “Loyalty Rules!” It costs 6 to 8 times more to acquire a new customer than it does to keep an existing customer coming back again and again.* September 2007 American Express Market Brief

• Companies with high levels of employee engagement improved their operating income by 19.2% .While companies with low levels of engagement saw their operating income decline by 32.7% over a 12 month period."FORUM - The Economic Case for People Performance Management and Measurement", December 2007.

• KPMG’s "People First" Recognition Program has made a big impact – a 3.6% fall in turnover, saving $3 million and $5 million per annum. The Australian Financial Review, ‘Work Space’. Knowledgeable and attentive employees account for 80% of the reasons consumers feel satisfied, PNC Bank Corp. survey, USA.

• Fewer than one in four American workers is working at full potential; half of all workers do no more than directly asked, and 75% of employees say they could be more effective in their jobs. Public Agenda forum, USA

• 70% of unhappy customers abandon vendors because of poor service.
  Forum Corp, USA. A 5% increase in customer retention can increase lifetime profits from a customer by 75%, Loyalty Effect by Frederick Reichheld.