Question

Topic: Strategy

Help In Developing An Effective Rewards Program

Posted by Anonymous on 9/29/2009 at 9:33 AM ET 250 Points
We are a large parking facility in the city of Boston which primarily services an office building with ~ 8,000 employees. We have less than 10% of this population contracted monthly parkers.
In parking, some companies subsidize the costs 100% or at least a percentage of the costs. The remainder is payroll deducted from the employee. With other compaines, 100% of the cost is deducted from the employee payroll.
Our dilema: who do we reward - company or individual?
Any ideas on the type of reward?
Thanks to all....
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RESPONSES

  • Posted on 9/29/2009 at 9:40 AM Accepted
    I suggest doing some type of market research - perhaps an online survey - to determine what would motivate both target audiences. You can publicize the survey on flyers, or via something printed on the parking tickets.

    By talking directly with both populations, you'll be able to find out the best rewards for either/both groups, as well as how to learn to position the rewards to maximize potential for purchase.
  • Posted by CarolBlaha on 9/29/2009 at 9:42 AM Accepted
    Employee- -they are your customer.

    The employer can tout the reward program as a employee benefit.
  • Posted by Markitek on 9/29/2009 at 1:00 PM Accepted
    What a great question.

    You reward those who earn it. Where the company makes the decision to use your facility, you reward the company. Where it's the individual, you reward the individual.

    Which means that you'll need two rewards programs. It's a common model really: the companies are your retailers and employees your consumers. You reward them both. Food manufacturers are masters at it.

    Which means you'll have to create rewards payoffs that will appeal to a company (discounts being an obvious one) and to an individual (services being also an obvious one).

    It also means the membership criteria will be different.

    Individuals that park in your garage should all be told about the rewards program and invited to join. It should be a featured part of your monthly subscription package. The more the merrier (as long as the program can cover its own administrative costs etc.).

    But companies have to pony up to play. Reach some number of monthly spaces to for the rewards benefits to kick in.



  • Posted on 9/29/2009 at 3:17 PM Accepted
    You need a reward program for each audience, as Markitek says. They each need to take action in order for your effort to work.

    I don't think discounting will be the best approach with either audience. See if you can be more creative than that. There is a lot of experience (especially in food and other FMCG marketing) that suggests that tangible "gifts" or "prizes" are better motivators than discounts. Further, they don't depreciate the perceived value of whatever you're selling, while discounts usually do.

    For example, giving people who park for 3 consecutive months a $100 US savings bond has a higher perceived value than an equivalent discount of $50. Etc. It's tangible and obviously valuable.
  • Posted by CarolBlaha on 9/29/2009 at 3:36 PM Member
    If the company was the retailer-- they'd be buying and reselling the parking-- and they aren't.

    If they were a retailer-- they would be your customer. They are not your customer. They facilitate but not much more.

    That obviously is true-- as only 10% of the employee base is taking the offer. It's being deducted from pay, or given as a full or partial benefit. Now I do think a company appreciate gift is in order-- but I just don't see a regular reward program. And who, would the reward go to? It won't go to the HR person who is implementing your program.

    Companies offer other benefits such as health care, legal aid, day care, without rewards. Now products they buy and resell-- they often get rebates (rewards).

    Goodman is correct to give certificates or other reward vs discounting. You can negotiate that so they are not full value to you. I get a reward monthly for one marketing group I participate in-- from Amazon. I accumulate them-- and they paid for my pool toys. Sounds nominal, but I bought a lot of toys for my new pool--and it was frivolous and something I'd feel guilty about if it wasn't "free".

    The beauty of Amazon is they sell such a range of product.

    One of my boss's used to give me a Starbucks gift card every year. It was a nominal amount-- $5, but to a road warrior-- I can't think of a $100 gift I appreciated more. Many drivers drink coffee on the way to work-- either from a place like Starbucks or from home. I think stopping by for a free coffee while making that drive is a wonderful reward and fits in very nicely to the business you are in.

    There are other ways to appreciate clients. Fusion market with a mobile oil change service, a windshield replacement service, a detailer, coupons for a free car wash. Do more than provide parking and take yourself out of being a commodity.

  • Posted on 9/29/2009 at 3:46 PM Accepted
    There are VISA Branded "Gift Cards" which are remotely re-loadable... ;-)
  • Posted by Chris Blackman on 10/1/2009 at 10:59 PM Accepted
    What do parkers want?

    Spaces near the exit doors, or the elevators.

    They want to drive in and park quickly, not circle down endlessly into the bowels of the earth.

    These are factors you control as the operator of the space, and they really cost you nothing apart from administrative effort.

    Another approach might be valet parking (you may already operate this way) so employees don't have to find a spot, they park in a valet bay and get reparked by your people.

    Detailing (Wash, polish, upholstery and carpet cleaning, etc) are additional services you could be selling through your space, and you could bundle to parkers and offer some free services as incentives.

    If valet parking, have you thought about Twitter as a way for drivers to communicate with you when they want their vehicle brought up?
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