When planning a strategy for increasing revenue through a performance incentive program, the client’s industry should always be considered in the design of the program. This is especially important in the healthcare and financial services (banks, insurance companies, mortgage companies, financial loan organizations) industries. Understanding regulatory compliance as well as ethical standards are critical in developing effective strategies.
A few years ago, HMI launched a program for a Fortune 500 company in the financial services industry. In addition to considering the client’s goals, sales structure, products, profitability, and communication systems in the development of the program structure, we needed to ensure that we properly navigated the regulatory and ethical guidelines that govern the industry as well as corporate ethical standards. Everything had to be considered in developing a performance incentive strategy to incentivize and to motivate independent agents and brokers. In collaboration with the client, we continuously refined the strategy throughout the four year campaign to improve program performance while also complying with a changing regulatory and ethical environment.
At the end of the program, the results spoke for themselves with significant sales growth and an increase in the number of contracts written. When analyzing the program, there was a stark difference in performance between individuals or organizations that were enrolled in the program vs. those that were not enrolled – both in the number of quotes as well as sales volume generated.
While it takes additional time and resources to research compliance and regulatory policies of certain industries, taking the extra step to guarantee that guidelines are being followed will ensure that the best strategy is developed and successfully implemented.