Incentive Programs Part 2: Calculating ROI and How to Maximize Returns

Return on investment isn’t just a buzzword- it’s a requirement. The insurance landscape is competitive and while companies understand the value of rewarding agents, they must also prove that value to justify programs and ongoing investment. 

Creative Group works with insurance carriers across the U.S. to design, implement, and evaluate incentive programs to ensure that both the carrier and the agent reap the rewards. In the first part of our series on incentive programs, we looked at best practices for optimizing or launching a program. Today we’re going to talk about measurement and how to put the right data in place to maximize your program.  

This is part two of a three part series on incentive programs in insurance. You can read part 1 here

Start with data 

In order to effectively measure where you’re going and how your program has influenced behaviors, you need to know your baseline. Who is selling? Who isn’t, and why? Creative Group helps clients gather performance, engagement, and training data to determine how an incentive program can be impactful. This could look like interviewing or surveying agents, reviewing CRM data, and looking at sales numbers throughout the sales process. By understanding how your audience is working and what barriers may be in place you can make the best decisions about structure and strategy for your incentive program. 

Define metrics

Once you have the data, it should be aligned with current business goals to create measurable metrics that go beyond sales. This could encompass things like new policy education and associated growth, increase in agent participation, persistency and underwriting accuracy, engagement with training, CRM tools, or a product-specific sales lift. Having multiple opportunities to achieve the incentive makes a program accessible and successful. For example, if you're rolling out a new life insurance product, measuring program success might depend on how many agents begin promoting it—not just how many policies are sold.

Report and optimize

Ongoing reporting is vital. In addition to tracking business objectives, monitoring participation, point accruals, redemption, and website activity allows for agile program adjustments. If you see a dip in activity, it can be a sign that something needs to be adjusted. Are you communicating enough? Do you need more content to support the team? Only checking in at the end of the year won’t let you see trends over time or make course corrections that can drive success. 

Keeping top performers engaged

Keeping programs attainable while allowing agents to stretch is a delicate balance. You don’t want top achievers to let off the gas if they reach a certain incentive. Layering on perks is a great way to extend engagement. For example, if your incentive is group travel, adding extra nights or a VIP experience can add value for the participant and reward them for going above and beyond. 

ROI Beyond Sales

True ROI goes beyond correlation in revenue targets and program participation. Strong incentive programs improve agent retention, brand loyalty, and product knowledge. When agents—captive and non-captive—feel recognized and connected to a brand, they’re more likely to recommend it, invest their time doing training for the brand’s products, and remain loyal to that brand through changes in the industry. That kind of consistency is important in insurance when trust and client relationships are paramount. 

Incentive programs are strategic investments. With proper data, structure, and support, companies can achieve measurable growth. Working with an experienced incentive partner takes out the guess work—bringing in their expertise and advanced services. For example, Creative Group offers financial modeling to forecast ROI based on the goals you’re trying to achieve, or our proprietary MotiveX™ survey to  uncover what truly motivates your audience. 

Stay tuned for our next installment that will focus on re-evaluating an existing incentive program and signs you need a refresh. 

About the authors:

Scott Tarnoff, Vice President, Business Development, brings to Creative Group over 20 years of experience as a sales leader and individual contributor. His passion for helping clients maximize the performance of their employees and partners has led to long term partnerships within multiple verticals for some of the world’s largest global brands. Scott holds a B.A. from the University of Iowa and is an outdoor enthusiast who loves to travel the globe. 

Jamie Schwartz, Senior Director of Marketing and Product, has been in the performance management industry for over 28 years designing and implementing incentive, recognition, and loyalty strategies that drive revenue, profitability and growth. She previously held leadership roles in marketing and product management for other incentive and travel companies as well as for foodservice and manufacturing companies. Active in the St. Louis area, Jamie is the Founder, President and on the Board of Directors for the St. Louis Women’s Circle.