How to design an incentive program. Part 1: Planning the strategy.

HOW TO DESIGN AN INCENTIVE PROGRAM · ISSUE 1 OF 7

How to design an incentive program: start with the right strategy.

A successful incentive program starts long before the rewards are handed out. It starts with a clear strategy that defines what you want to achieve, who you need to motivate, how performance will be measured and what will keep people engaged.

Issue 1 of our seven-part How to design an incentive program series introduces the essential building blocks of an effective incentive strategy and provides a practical starting point for designing a program that delivers measurable results.

What you’ll find in this guide:

• The fundamentals of incentive program design and why incentives work.
• The different types of employee, sales and channel, and customer incentive programs.
• How to define clear, measurable program objectives.
• How to identify the right participants and eligibility criteria.
• How to determine program duration, campaigns and reporting periods.
• How to approach performance measurement and ROI.
• What to consider when setting your program budget.
• How rewards fit into the wider incentive strategy.
• The role of technology, data and AI.
• How to plan your launch and ongoing communications.
• Why effective administration and governance matter.