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Incentive schemes<\/a> Programmes for retailers and shop staff in the traditional retail sector (including franchise-based chains and informal associations) are organised across many market segments. There are many examples of such programmes, not only in the food retail sector, but also in veterinary clinics, car repair workshops, chemists, building materials outlets, opticians, and so on.<\/p>\n The article covers the following topics:<\/strong><\/p>\n\n\n\n At i360, we specialise in implementing incentive schemes in these and other market categories. Such solutions are common in situations where the distribution structure does not allow for the top-down establishment, implementation and maintenance of rules regarding product availability, stock levels, display standards, the distribution of promotional materials or the methods used by staff to recommend products.<\/p>\n\n\n\n The concept of \u201eattention to detail\u201d encompasses activities aimed at:<\/p>\n\n\n\n Why are incentive schemes used for retailers? To ensure that independent retail outlets stock the programme organiser\u2019s product range, display it in accordance with the prescribed merchandising standards, and maintain an appropriate level of stock.<\/p>\n\n\n\n Retailers have their own ideas about how to run their businesses, and on top of that, they are often the target of aggressive tactics by other manufacturers offering their products through the same distribution channel. How can you persuade them to implement your ideas? This is where offering them the benefits of taking part in incentive schemes can help.<\/p>\n\n\n\n Retailers need manufacturers, importers and distributors just as much as retailers are useful to sales representatives. Small business owners often emphasise their independence, lack of time or the ability to choose from a range of competing offers. The basic business concept in this case, however, is to buy directly from manufacturers or distributors and then sell on at a mark-up. Retail simply cannot exist without products.<\/p>\n\n\n\n What\u2019s more, retailers usually have only a basic understanding of how to run a business. Otherwise, they would not invest such large sums of money \u2013 as required to rent premises and stock a retail outlet \u2013 in a simple but poorly scalable retail outlet.<\/p>\n\n\n\n Retailers and shop staff can be extremely helpful in achieving sales targets (including increasing unit sales). When the rules of an incentive scheme are skilfully designed and the right incentives are used \u2013 provided the whole scheme is implemented in line with best practice \u2013 they prove to be highly effective.<\/p>\n\n\n\n The most important factors are direct contact and keeping the time required to register a participant to a minimum. This involves, amongst other things, obtaining consent to participate and all the necessary details, such as a telephone number or email address. It is precisely this that determines whether registration runs smoothly, which in turn directly affects the effectiveness of the event. Gathering as many participants as possible in the shortest possible time allows the programme to get underway straight away, and consequently, for participants to reap the benefits.<\/p>\n\n\n\n User registration can be carried out by the company\u2019s own sales force, distributors\u2019 sales representatives, or a dedicated team focused on quickly reaching selected points of sale. The choice of solution is usually determined by whether the company has a dataset on retail outlets (including, for example, the value of turnover generated or the level of technological sophistication of the product range).<\/p>\n\n\n\n The fewer steps involved in the registration process, the greater the chance of success. Ideally, it should be possible to obtain approval to join the scheme, register the retailer and all staff, explain how the scheme works, present the rewards catalogue along with the prepaid card (as a means of cash withdrawal) and verify that the contact details provided are correct (for sending text messages and emails).<\/p>\n\n\n\n At i360, we have been running such programmes across many market segments for over a decade. Would anyone have decided to run a programme for so many years if it did not deliver clear results, the value of which can be measured by Nielsen figures? Our effectiveness is confirmed by the numerous awards and accolades we have received from independent, influential organisations.<\/p>\n\n\n\n Due to restrictive NDAs, we are unable to discuss the results of our activities in detail, but it is worth checking the financial statements in the National Court Register (KRS) of leading companies on the Polish market whose sales depend on the performance of traditional retail. These provide reliable evidence that incentive schemes do indeed work well. The most convincing factor, however, is probably the fact that they have been implemented continuously for many years and generate double-digit growth in sales.<\/p>\n\n\n\n It is impossible to pinpoint a single element of the programme that determines its success. Such an initiative is a whole system. It combines principles, objectives and KPIs, incentive ratios, communication tools, the specific structure of the offer and a particular tax model. It is only when all these factors come together that they influence the final outcome.<\/p>\n\n\n\n However, even the best incentive scheme will not work in the long term unless it is supported by a good IT system. This should combine the functionality of a CMS, a CRM and a loyalty engine.<\/p>\n\n\n\n An IT system for managing an incentive scheme has a huge impact on whether the scheme will be straightforward and enable the setting of meaningful purchase targets whilst facilitating the measurement of progress, or whether it will combine commercial terms with the rules of the incentive scheme, the creation of individual offers, rewarding value-based targets, and modifying the rules on a weekly basis, etc.<\/p>\n\n\n\n When deciding to work with an external organisation, it is essential to check whether it holds the ISO 27001:2013 information security standard. At i360, we have been complying with this standard for over four years. Furthermore, we are audited once a year by T\u00dcV Rheinland, which confirms our compliance with the standard by issuing the relevant certificate.<\/p>\n\n\n\n It is difficult to give a definitive answer to this question, as it all depends on the finer details. Decision-makers respond more favourably to tools that streamline day-to-day work and to money paid onto a prepaid card, whilst staff and shop assistants prefer specific rewards depending on the season or time of year.<\/p>\n\n\n\n In the run-up to Christmas and Easter, the most popular gifts are those directly related to these festivals, which can be given as presents or used during family gatherings. During the summer holidays, travel vouchers are the most sought-after items. In autumn, on the other hand, accessories for making preserves are a popular choice, whilst in spring, during First Communion season, bicycles, computers and other suitable gifts are favoured. Following the introduction of the lockdown due to the coronavirus pandemic, however, the most popular prizes were those delivered electronically, including audiobooks, VOD codes and discount vouchers.<\/p>\n\n\n\n Cash rewards are distributed in various ways. Prepaid cards, bank transfers and ATM withdrawals work best. The use of paper vouchers is far less effective and reduces the programme\u2019s effectiveness.<\/p>\n\n\n\n A detailed e-book on tax models can be downloaded here \u2013 Download<\/a>.<\/p>\n\n\n\nIncentive scheme for retailers<\/strong><\/h2><\/p>\n\n\n\n
Retail incentive scheme \u2013 how does it work?<\/h3>\n\n\n\n
How do you implement an incentive scheme in retail?<\/h3>\n\n\n\n
An incentive scheme for retailers. How do we know it works?<\/h3>\n\n\n\n
What makes incentive schemes for retailers successful?<\/h3>\n\n\n\n
What kind of incentives work best for retailers?<\/h3>\n\n\n\n
What are the tax implications of implementing a retailer incentive scheme?<\/h3>\n\n\n\n