Slicing and Dicing: Segmentation Enables Real Impact

in Sales (and all Employee) Recognition

Chris Galloway SVP, Performance Solutions

Fusion Marketing l St. Louis l MO

• Could your company benefit from being able to predict

the winners of a top performer travel program before

qualification even begins?

• How could understanding the key drivers of this

performance help you segment your audience and

design program elements that improve results?

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Key Topics

• “Around” for 20+ yrs. – Done it all … travel, non-

cash, sales, product, etc.

– Our client for today’s example – Orkin, a division of Rollins, Inc.

• Fusion Marketing – Change business

– Ground up approach

– “I help give presents to people who do good work!”

• My goals for today: – Painless data

– Painful humor

– Real world examples

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My Background Zeke and Millie

Long haul wisdom

“Only three measurements … about your

organization’s overall performance:

1.employee engagement,

2.customer satisfaction, and

3.cash flow.

It goes without saying that no company,

small or large, can win over the long run

without energized employees who believe

in the mission and understand how to

achieve it.”

~ Jack Welch, former CEO of GE

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Agenda

Incentives

• Is engagement enough?

• Everybody sells

BACTM

• New research model

• Next level of engagement

Case

• Orkin Pest Control

• All employees

Design

• Segmentation by regression is not scary!

• Design aid

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Agenda

Incentives

• Is engagement enough?

• Everybody sells

BACTM

• New research model

• Next level of engagement

Case

• Orkin Pest Control

• All employees

Design

• Segmentation by regression is not scary!

• Design aid

Engagement

– Forbes – “The emotional connection the employee has to the

organization and its goals. When employees care – when they

are engaged – they use discretionary effort.”

Question: Whose definition of discretionary effort are we using?

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Is engagement enough?

Companies are turning to

incentive-based structures to

augment or, in some cases,

replace their employee

recognition efforts.

Appealing because they are

variable expenses based on

business results.

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Incentives have a place in employee engagement

All employees sell:

– The brand

– The company

– The products

If one goal is to drive

business results

(revenue), let’s drive

the behavior of “selling”.

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Everybody sells

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Product Sales:

Steps to the sale were

prescribed.

Competition and choice

were far less than today.

Consumers (and

Business Customers)

were less informed.

We aren’t talking about …

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This guy could do it.

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Even this guy could do it!

Solution selling

•Steps are different … behaviors are

different

•Quality over quantity

•Quality requires a different level of

commitment

•By the way, selling is NOT only a

sales person’s job

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Selling today is complex

• Participants are consumers – adopt a consumer marketing mindset

• “Peanut butter” programs don’t sustain – An overarching platform and communications are

important, but …

– Segmented/targeted promotions maximize results

– More data collected allows for more-refined segmentation

• Design for long-term success by enabling a shorter-term view

1. Determine key performance drivers through research

2. Apply value to steps to the sale and pay out that value

3. Launch smaller promotions more frequently (with control groups)

4. Design the participant experience to facilitate personal development

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Fusion: Incentive Program POV

Research Design Execute Sustain

Initial

interviews

Participant

research

Collaborative

launch

Goal

achievement

Share findings,

establish objectives

Establish

program goals

Launch

celebration!

Client

recognition

Stakeholder

meetings

Solution

design Business review Refresh lab

Ride-along,

focus groups Contract

Partnership

scorecard

Next phase

development

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Client Engagement Road Map

1 2 3 4

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Agenda

Incentives

• Is engagement enough?

• Everybody sells

BACTM

• New research model

• Next level of engagement

Case

• Orkin Pest Control

• All employees

Design

• Segmentation by regression is not scary!

• Design aid

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How do you measure quality?

How do you measure commitment?

How do you define steps to a complex

sale?

How do you enable commitment?

Research

When you do surveys, are you

staging the snapshot? OR, are you

simply looking for a sound byte that

supports your position?

Some selfies tell a much different

story than you might expect …

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First, remove your natural bias

Does this even look right? Is this the appropriate time? What dangers are we ignoring? What effect are we truly having on our people?

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Example

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Listening without bias

“Of course they SAY they

want cash, but that isn’t

really what they want.

Non-cash motivates

waaaaaaaaaay better!

Trust us!”

BTW, that’s true and was

born out by real research.

• Be willing to ask the questions that could identify that

other problems are more important than a program

– Neutral environment

– Involve researchers

• Ensure that the answers you hear are evaluated

appropriately

– Top box scores are incomplete

– The right model will pass multiple validity tests

– Regression is NOT scary! It is the key to prioritization

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Listening without bias

The

Brand Ambassador CommitmentTM

Model

1.Why Brand Ambassador?

– Signifies alignment with the brand promise,

mission, vision, values

– Ambassadors not only bear the flag, but live

locally in spirit of the company

2.Why Commitment?

– Engagement is loosely defined around the

concept of discretionary effort

– Commitment signifies action in a focused,

productive way

– Commitment is oriented to the longer term

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Introducing!

“Regular rank-and-file company

employees have more credibility than

executives.

By turning employees into trusted brand

ambassadors, companies bring their strongest

asset and their most vocal internal advocates

in direct contact with their customer base.”

(2012 Edelman Trust Barometer)

Ekaterina Walter ~ Forbes 2013

What are we saying?

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Commitm

ent Engage

ment

• Originally used for

consumer marketing

– Olander &

Thogersen, 1995

• Builds on theory of

planned behavior

– Considers

consumers’ ability

and opportunity to

be “loyal”

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Integrated Assessment Model for Consumer Marketing

Motivation / Opportunity / Ability (MOA)

= Results

Be

havio

r

Research Model

Motivation • Personal goals

o Extrinsic

o Intrinsic

• Attitudes

• Emotional tie

• Norms

• Satisfaction Organizational

Support • Communication

• Training

• Tools

• Programs

• Leadership

Ability • Selling skills

• Performance

• Experience

BACTM

The degree to

which the

person is

expending time,

effort, and

intensity to the

target brand

Question: What drives people to align with the brand promise, commit to excellence

in their job, and perform at their highest levels?

1/10/2015 25 Patent pending. © 2014

VALIDITY AND RELIABILITY

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Measure of internal consistency and an estimate of the reliability of a test

(generally, scores greater than .70 are considered ideal)

Construct Validity - Reliability

Scale Reliability Index

BACTM .96

Ability .86

Personal goals .85

Attitudes .92

Emotional Tie .91

Organizational Support .94

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The entire BAC model successfully classifies more than 80% of respondents as

verified top performers.

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Predictive Validity

Motivation • Personal goals

o Extrinsic

o Intrinsic

• Attitudes

• Emotional Tie

• Norms

• Satisfaction Organizational

Support • Communication

• Training

• Tools

• Programs

• Leadership

Ability • Selling skills

• Performance

• Experience

BACTM

The degree to

which the

person is

expending time,

effort, and

intensity to the

target brand

Patent pending. © 2014

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Agenda

Incentives

• Is engagement enough?

• Everybody sells

BACTM

• New research model

• Next level of engagement

Case

• Orkin Pest Control

• All employees

Design

• Segmentation by regression is not scary!

• Design aid

CASE EXAMPLE

Orkin Pest Control, a Division of Rollins, Inc.

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Who is Orkin?

• Founded in 1901

• Industry leader in pest

control services

• Wholly owned subsidiary of Rollins, Inc.

• Employ nearly 8,000 team members

in more than 400 locations in the United States, Canada, Mexico,

Europe, Central America, South America, the Middle East, the

Caribbean, Asia, Africa, and Australia

• Serving approximately 1.7 million residential and commercial

customers

• GOAL is to be the NATION’S BEST SERVICE COMPANY

• “Began in 1973 as a small sales recognition program …

• In the 1980s we began including service positions … (now includes

field management, administrative coworkers, and home office

representatives)

• The event is very high-touch, and the planning team prides itself on

having thought of everything, so our winners are truly pampered

throughout the trip.

• About 60% of our winners have won multiple years …

• Our goal every year - to make this year's event the best one ever.

• Our top performers deserve it!”

Martha Craft – VP, PR and Corporate Communications

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Top Performer Award

• “The top performer trip is a strong motivator to superior performers,

however, …

– Some of our field employees disengage from it, because it is not

achievable for them.

– Non-winners (80% of respondents) aren’t feeling the same connection (loyalty)

to Orkin that winners are.

• Orkin has a strong organizational culture, and truly high ratings, but

there are targeted areas for improvement:

– Enhanced communications and brand training to front-line employees

– A more inclusive and aligned incentive program will focus on key drivers by role

(as defined by the survey) and will:

• Deepen connection with our employees on multiple levels

• Boost their brand alignment in delivery of customer service

• Reward performance throughout the company.”

Martha Craft – VP, PR and Corporate Communications

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What did the BAC survey tell Orkin?

KEY DRIVERS

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BAC scale is our “index”

•We then measured every other question against that index on a graph to gauge:

– Importance

– Actual score

•From this we can determine key drivers and action items—from a big picture perspective

Leverage/Exposure Index – Key Drivers

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Q1

Q2

Q3

Leverage/Exposure Index (all respondents)

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High importance / high score:

“Do More”

High importance / low score:

“Do Better”

Low importance /

Low score:

“Reduce”

Low importance /

high score:

“Keep up”

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Agenda

Incentives

• Is engagement enough?

• Everybody sells

BACTM

• New research model

• Next level of engagement

Case

• Orkin Pest Control

• All employees

Design

• Segmentation by regression is not scary!

• Design aid

SEGMENTATION EXAMPLE ORKIN SALES REPS

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Salesperson Segments (Pilot study – sales only)

• Plotting predictors of BAC helps segment the sales force

• How we engage each segment can and should be different

• (see next

slide)

39.6% PC

47.6% PC

39.3% PC

39

Brand

Agnostic

24.1% PC

n=53 n=28

n=21 n=29

Brand Ambassadors

• Seek high compensation and are attached emotionally to Orkin

• Retention of these reps is critical to growth; ideal candidates for large accounts or critical routes.

Brand Mercenaries

• Oriented towards compensation, but scored low on emotional ties to Orkin

• These reps tend to feel less connected to Orkin management even though they have been successful. This segment benefits from incentives/promotions and personal development.

Brand Idealist

• Emotionally “bought in” to Orkin, but scored lower in compensation seeking

• This group represents the highest percentage of President’s Club winners; Communication and personal recognition are most effective here.

Brand Agnostic

• Lower overall scores in compensation seeking and in emotional ties to Orkin

• This group tends to have more negative attitudes than other segments, less confidence, and feel less organizational support.

Interpretation by Segment

40

What would other cuts tell us?

• Ability vs. emotional tie

• Comp vs. recognition

• Attitude vs. norms

Salesperson Segments

41

Brand

Agnostic

• Could your company benefit from being able to predict the winners of a top

performer travel program before qualification even begins?

Driving “Brand Ambassador Commitment” behaviors will

• Enable you to identify true top performers

• Adding an incentive program structure will help engage more employees,

but will also drive results

• Help you prioritize key behavior areas

• How could understanding the key drivers of this performance help you

segment your audience and design program elements that improve results?

1.Do research, be open-minded, engage with researchers

2.Purposeful segmentation (as in consumer marketing) is useful for

program design, promotions, and ongoing measurement

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Key Topics – Take-aways

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Q&A