Everyone’s heard the age-old adage, “knowledge is power.” However, as we in the business community find ourselves traversing through this data-driven decade, we have to realize that knowledge is no longer just power: it’s profit. With the exponential growth in value of analytics-based solutions, it’s becoming harder and harder to solve modern-day problems with antiquated (that is, data-less) strategies. In order to satisfy increasingly sophisticated demands, you need a tool, a module, a system that can provide the kinds of data points and analysis your clients are looking for.
So, in dealing specifically with performance incentives, what might this kind of system look like? First, it needs to have the capability to monitor the progress of a given program, helping you and your clients make more informed decisions that inevitably will lead to better results. Second, it should be able to highlight performance trends among participants, and enable you to find new avenues for increased engagement. Third—is it user-friendly? If its reports and dashboards need to be interpreted for you by a team of analytics gurus from MIT, it probably won’t help you simplify your path to success. Finally, if the information generated through this system is to be of real value, then the data must be delivered in real time. In other words, any data-driven incentive solution has to provide both real-time reporting and post-hoc analysis.
Any analytics tool or system that can offer these services won’t necessarily be a silver bullet for your business—but it will certainly help you answer some of the most pressing questions related to your incentive program. Questions like:
- What was the overall ROI generated by the program?
- Did the program achieve its established goals?
- How has the program progressed year-over-year?
- Is a quarterly promotion worth repeating?
- Are certain products selling better than others?
- Are certain rewards motivating more than others?
- Who’s the program reaching? In what regions has it been most effective?
If your current incentive solution is still having trouble answering some (or all) of these questions, maybe your solution isn’t quite sharp enough. Maybe it’s time to look for something a little more on the cutting-edge.
