1. The Sales Force: Ambassadors of Your Brand Stan Striker, Maritz Incentives

2. What you will gain from this session… Learn about the link between satisfaction and business success by delivering on your brand promise Learn how to use incentives to drive sales effectiveness Hear how well-designed incentives drive results

3. Brand Promise…what do you think of? Gaps – over promising, under delivering? Promise management – under promising, over delivering? Is it better to surprise the customer, or, better to be reliable and consistent? We certainly know that nothing good comes from a bad experience…

4. Brand promise delivery…the bad and the good. “Service quality has five times more weight in influencing purchase and repurchase decisions than any other attribute tested.” Jeffrey F. Rayport and Bernard J. Jaworski Harvard Business Review “When there is a gap between promises and delivery, customers defect to the tune of 52%.” UCLA/Mercer survey

5. Employee Satisfaction “…Through their direct and indirect impact on customer satisfaction, employee satisfaction and employee engagement positively influence financial performance.” "The ongoing study found a one-unit increase in employee satisfaction led to a 0.31 unit increase in customer satisfaction. In turn, a one-unit increase in customer satisfaction created a 0.28 unit improvement in financial performance." Don Schultz, Northwestern University, and James L. Oakley, Purdue University

6. Key questions… Do you view brand alignment as a long-term investment? Are your sales people ambassadors of your brand? Have you prepared them for the task? What can you do to close any gaps?

7. CustomersDistribution Network Your Organization A Scenario: Current State distribution segmentation competition Business Planning roles Customer experience roles Employee satisfaction solution selling Source: Maritz Inc

8. Case History: Automobile Manufacturer Participants – Dealer organizations Challenge: –Support the brand in the marketplace –Drive unit sales –Improve on customer satisfaction through operational effectiveness Solution: –Engage Dealers in location specific-research –Provide a business consultant to assist in making the results actionable –Reward improvements in sales and customer satisfaction Results : –Increase in sales by participating Dealers –Reduction in warranty service “comebacks” –Reduction in sales consultant turnover

9. Case History: Petroleum Company Participants – Dealers and employees Challenge: –Increase sales of fuel –Improve on customer satisfaction scores Solution: –Provide detailed guidelines for location appearance and cleanliness –Provide location-specific research –Reward employees for living the vision –Reward Dealers for increased sales Results: –Sales increase by participating Dealers –Increase in customer satisfaction scores

10. Customers A Scenario: Desired State Distribution Network Sector Solution Technology Messages Initiatives Tools Brand Relationship/ Experience Business Planning Knowledge Experience Strategy Resources Experience Source: Maritz Inc

11. What drives behavior? WorldatWork, 2006

12. What rewards best drive behaviors? “…four psychological processes can increase the perceived value of tangible non-monetary incentive awards over and above cash- based awards…” The SITE Foundation, Scott Jeffrey, University of Toronto study

13. What rewards best drive behaviors? Evaluability Separability Justifiability Social Reinforcement

14. Case History: Pharmaceutical Company Participants - Sales Reps and Managers Challenge: –New product launch –Highly competitive market Solution: –Address participant demographics –Identify reward preferences –Deliver effective communications –Generate excitement, sustain focus Results: –Highly successful launch –Sustained growth over time

15. “Due predominantly to design and administration problems, only 30% of implemented employee awards and recognition programs are considered successful.” Daniel Yankelovich Poll “Properly constructed incentive programs can increase performance by as much As 44%.” The SITE Foundation Study The Importance of Program Design

16. Human Performance Technology Model Appraisal System Career Development Communications Culture Change Compensation and Reward System Information System Staffing Training Job/Work Design & Others Cause Analysis Performance Analysis Intervention Selection & Design Lack of: Consequences, Rewards, Incentives Data, Information & Feedback Environmental Support, Resources Tools Individual Capacity Motives & Expectations Skills & Knowledge Gap Desired Performance Actual Performance Mission Strategy Goals Organizational Environment Evaluation Implementation & Change Management Source: Human Performance Technology Model, ISPI, Human Performance Technology Institute.

17. Design: tailoring solutions by answering 5 Questions… Source: Maritz Inc ROLE CLARITY VISION & STRATEGY REWARDS & RECOGNITION REWARDS & RECOGNITION COMPETENCE & CAPABILITY COMPETENCE & CAPABILITY MEASUREMENT & FEEDBACK MEASUREMENT & FEEDBACK HUMAN PERFORMANCE HUMAN PERFORMANCE

18. Case History: Life Insurance Participants – Sales Representatives Challenge: –To motivate a greater number of Reps –Fund the rewards from incremental performance –Traditionally rewarded top performers only Solution: –Provide individual sales goal –Provide performance feedback Results: –Expected performance from top performers –The mid-level performers accounted for a majority of the total sales improvement

19. Structure - Moving the Majority B Level Accelerate Growth A Level Maintain and Grow Sales/revenue Performance C Level Accelerate Growth or Evaluate For Reassignment A 5% performance gain from the middle 60% yields over 70% more revenue than a 5% shift in the top 10% Based on a 2003 study called “Shifting the Performance Curve” by the Sales Council of the Corporate Executive Board Number of employees

20. Case History: Pharmaceutical Company Participants – Field Representatives & Managers Challenge: –Overall management of the reward process across divisions –Duplication in rewarding top performers for the same effort –Rewarding only financial measures Solution: –Introduce a process for identifying behaviors of top performers –Prioritize key behaviors and develop metrics –Provide a multi-year approach that tracks overall performance by individual and rewards improvement Results: –Year-over-year program continues to evolve in identifying and rewarding the most desired behaviors

21. Case History: Office Furniture Manufacturer Participants – Dealer Sales Reps Challenge: –Research identified sales reps as most influential –Capture discretionary time and effort of sales reps –Increase sales rep product knowledge Solution: –Developed an integrated certification program –Included on-line and audio modules –Completion of program rewarded with group travel for both recognition and further learning Results: –Double featured product sales

22. And, if design is important… “80% of sales reps’ perceptions of company leaders are influenced by their relationships with their direct supervisors.” Gallup Organization “Without on-the-job reinforcement, Reps lose 87% of training within one month.” Sales Executive Council research implementation is more important!

23. The Light Bulb Effect Distributor Sales Manager Distributor Sales Reps Distributor Principal Field Sales

24. Managers Are the Critical Link The value of a front-line manager is in his/her ability to lead, coach and motivate the sales force. Front-line managers should be involved in every stage of program design, launch and implementation. Front-line managers are a critical link between your organization and your sales force….your ambassadors of the brand!

25. Hopefully you gained from this session… The link between internal satisfaction and business success That the sales force can be your greatest brand voice A well-designed solution is important, but implementation is critical

26. Questions & Answers For additional information, please contact Maritz Inc: (877) 4 MARITZ or maritz.webinar@maritz.com To download a copy of today’s presentation, please go to: http://www.maritzincentives.com/ambassadors