Is Your Incentive Program "Senate Ready?"

If you're one of the many companies canceling or scaling back your incentive activities in 2009 because you think it's wasted money, that it's really a "nice to have" or you're worried about the perception your stockholders (stakeholders) will have, then you probably haven't done your due-diligence in the past - and if you're like most companies - won't in the future.

If you don't have the back up, the data, the research, the information needed to support your programs then you probably shouldn't run them.  Put all the mugs, mouse pads, catalogs, trips in the closet and say goodbye to them.  Why would anyone run any initiative that costs money in today's environment if you're not positive it's the right thing to do?  If you've only been running employee programs and distribution programs because you think you "should" then you shouldn't. 

But I'm guessing there is a big part of you that knows it's the right thing to do and you know in your gut that it drives results.  But you don't have the back up.  Unfortunately, you probably don't trust the companies that run your programs 100% - heck what are they going to tell you - their program is irrelevant, that it really doesn't need to be done?  Why would they cut off their nose to spite their face?

What if you had to go in front of a Senate Committee?

If you are canceling or adjusting your spend for 2009 I urge you to use that time wisely and analyze the programs you run and create a really good set of data points, industry analysis and program designs so you're ready for 2010.  Don't just wait out the down turn and then fire up the same old engine. 

If you can't answer these questions - don't run the program...

• Did we hit our goals in past programs? (assumes you actually had some and you accurately reported on them.)
• What did our competitors do?
• What have other companies done that may be applicable in our case? (They don't necessarily have to be your competitors.)
• What is the latest research on motivation and psychology relating to influencing behavior?  Are we incorporating any of that in our plan for the future?
• How are we linking all of our external and internal marketing initiatives together to provide a complete view of how we influence all our audience's behaviors?
• Do we include both short and long-term objectives in our strategy or is it simply what needs to propped up this quarter?
• What do our audiences think about the programs we've run in the past?  Have we leveraged their knowledge and their influence?
• Do we really know the make up of our target audiences or are we "guessing" they are 50/50 male-female between the ages of 25 and 65?

I'm betting 90% of the companies that run programs can't answer half these questions. 

If you can't - shelve the program.  It makes no sense to spend money if you're not comfortable answering these tough questions. 

Imagine you're in front of a Senate panel (not unlike the CEOs of the US auto companies) - could you answer the questions they would throw at you?  You should.