TPG Helps Companies Increase Sales Through Incentive Travel Programs
San Francisco, CA (PRWEB) February 25, 2016 -- What is a travel incentive, exactly? Generally, it is an all-expense-paid recognition trip for an organization’s top sales producers. An effective business tool, incentives reward a specific level of sales goal achievement set forth by management. A “normal” sized incentive can be anywhere from forty to two hundred participants, not including guests. Sales travel programs are usually held at luxury hotel properties in distinctive destinations. Hosted group meals requiring elevated food experiences, named entertainment, and immersive décor is de rigueur; hosted group activities, whether that’s a cooking class or jeep safari, should highlight what is local and fun.
So why do companies incorporate incentive travel into their sales compensation package? To retain talent and increase sales. One study by Oxford Economics, a global research firm, found that every dollar invested in business travel resulted in $12.50 in added revenue and $3.80 in new profit for the participating companies. Additionally, incentive travel participants historically earn more revenue and have longer tenure than their non-participant counterparts. While incentives include immediate gratification with toes in the sand, the ROI of an exciting trip lasts well beyond departure day. A sort of “water cooler marketing” happens when sales achievers boast to their colleagues about their extraordinary experiences. This, in turn, promotes healthy competition for the following year.
But why are sales incentives so rewarding? TPG, a third party event planning company, believes that success comes from creating experiences participants can’t recreate on their own. Debbie Parsons, President of TPG, explained, “We’ve had clients sip champagne among the ruins at Ephesus. We’ve had clients picnic under the stars during a private performance by Pat Monahan from Train – who gets to do that?” Beyond the glam, group trips build camaraderie among peers and offer myriad schmooze opportunities with executives. Best of all, sales achievers get to share their experiences with their spouse or partner, thus adding outside-office support and cheer-leading throughout the year.
So how is an incentive done right? First, the paying company must set a realistic budget. “Incentives are a big expense,” Kate Rice, Senior Buyer at TPG, explained. “Food and air travel costs are rising, and it’s a seller’s market for hotels. That said, we use the bid process and our negotiation skills to drive down costs and solidify a list of concessions.” Once a budget has been blessed internally and the hotel contract has been signed, a well-timed marketing campaign with regular sales reporting is advised to motivate the sales team throughout the year. Finally, it’s all about the execution - impeccable customer service and a flawless onsite experience are both essential when creating a rewarding incentive trip that drives sales behavior.
Stuart Patton, The Performance Group, http://www.tpgnc.com, +1 510-923-7169, [email protected]
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