SalesForceXP: May/June 2008 Coverstory: U.S. Bank Earns Unexpected Dividends With Its Call Center Incentives

FEATURESTORY

SalesForceXP May/June 2008 Cover Measuring the Halo Effect

Effective sales incentive programs can't run continuously, and the truth is they don't have to.

Data from recent GoalQuest programs operated by U.S. Bank for its call center customer service representatives indicates that the sales lift created by a 90-day GoalQuest incentive program lingered, albeit to a lesser degree, for as long as the program itself.

BI measured the results of a GoalQuest program that U.S. Bank offered to approximately 400 workers in its telephone service and sales centers. Bankers were asked to suggest products that met customers' needs (loans, CDs, etc.).

The bank realized a 63 percent lift over the original baseline during the 90-day GoalQuest program and a 41 percent lift over the original baseline in the 90 days immediately following the program.

Megan Nelson, Incentive and Recognition Manager at U.S. Bank, credits the lingering lift (or "halo effect') to increased confidence that the reps gained during the GoalQuest program, as well as enhanced engagement of managers even after the program ended.

"People can get into a habit of performing at a higher level," says BI VP Tim Houlihan, which is a good thing because no one encourages perpetual incentive programs.

"The end game is the ability to time your incentive programs so that you've started another program rather than waiting until that productivity curve is near the baseline," says BI's Dave Smith. "You'll ride the crest of the waves rather than going down into the troughs."

And instead of running the same incentive program twice, Houlihan says most companies match their efforts to a particular pain they're experiencing at the time. "It's not just about 'I need more sales.' It's more typically, 'I need more sales in this product line, or in a certain region, or at a higher margin.' The [GoalQuest] methodology can provide rewards for achieving a lot of different things."

High performance is habit forming. U.S. Bank realized a 63 percent lift over its baseline during the 90-day GoalQuest program, and enjoyed a 41 percent lift over the baseline in the 90 days immediately following the program.