Companywide ROI: The Next Level of Incentive Measurement

FOR YEARS, incentive return on investment was judged by a simple formula: Deduct the costs of the award from the increase in profits the incentive program generated. Some fairly new research on ROI has improved upon this basic approach. At Carlson Marketing Group, Tom Lacki, PhD, has developed Success Metrics as a measurement tool. This approach looks at a program's operational effectiveness, promotional success, and overall results, giving a more detailed assessment of its ROI.

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