Best Incentive ContestJuly 28, 2010

WESTERVILLE, OH

Incentive Myths• Frontline sales force must be the target

audience

• Incentives should be used when there is a decline in performance or to solve a performance problem

• Big ticket prizes bring bigger results

• Elaborately designed contests are more fun

INCENTIVES

The Affinion Approach• Sales agents unaware of incentive – aimed at

exempt staff of managers and directors

• Designed to capitalize on the momentum from successful performance in previous months

The Affinion Approach• Sales agents unaware of incentive – aimed at

exempt staff of managers and directors

• Designed to capitalize on the momentum from successful performance in previous months

• No financial reward offered

• Ultra simple concept

ABGMembership

VS.

It all started with an email…

• Team with the greatest improvement in April retention performance over March wins

• Penalty for below goal QA scores 0.1 percentage point deduction from the retention

improvement for every half of a percentage point department QA is below 90%

• The losing team gets a pie in the face – delivered by a member of the winning team

Incentive Guidelines

GOALS

ABG 34%

MEMBERSHIP 27%

MARCH 2011ABG40.0%MEMBERSHIP 27.7%

Incentive Support

GOALS

ABG 34%

MEMBERSHIP 27%

MARCH 2011ABG40.0%MEMBERSHIP 27.7%

March April Variance

ABG 40.0% 38.2% -1.8

MEMBERSHIP 27.7% 29.0% +1.3

April Variance Penalty

ABG 88.6% -1.4 -0.3

MEMBERSHIP 91.3% ---- ----

Ret. Var QA Penalty Total Variance

ABG +1.8 -0.3 -2.1

MEMBERSHIP +1.3 ---- +1.3

FINAL RESULTS

QUALITY PENALTY

RETENTION

$0.03 per FTE

Cost

Generated Revenue

$82,692.66*

*REVENUE IS CALCULATED OVER 12 MONTH PERIOD

Return On Investment

5633:1

:

WINNERS

Not-So-Much Winners

VISITORS

• Fresh incentive approach netted strong results

• Focus on motivating leaders drives desired behaviors at all levels

• Competitive spirit is a strong force

• Variety of incentive types and targets necessary to be effective

• Important to continue to motivate during successful times

Conclusions