Meeting News - May 25, 2009 - (Page 19)

Incentive Insider By Julie Barker Incentive Meetings Ensuring Co.’s Motivation Penn Mutual won’t cancel the trips that have proven valuable for generations WHILE OTHER companies, cowed by negative quarter, as stockholders would demand. The Penn Mutual Leaders Conference is the publicity about incentive meetings at five-star resorts, are canceling meetings that might seem too incentive conference that sellers of its insurance lavish, Penn Mutual believes in the way it has motivated its top producers for more than a generation. In March 2008, the top-selling agents went to Hawaii, where they stayed at the Grand Hyatt Kauai Resort & Spa. This year, they’ll be at Lake Las Vegas, and in 2010 they’ll head to Cancun. Amid the promised relaxation, they also expect to have two days of meetings as well as plenty of time to share a golf cart or a chat with a Penn Mutual executive. “It’s an important investment in our producers and in the ongoing success of Penn Mutual,” said Leanne Acton, assistant vice president of conference planning and travel services for Penn Mutual, based in Penn Mutual assistant vice president Leanne Acton Horsham, Pa. Producers conferences are incentive travel with a strong educational compo- products vie to attend. It is “part of the culture that nent. They also are motivational in that the people we live in,” said Acton. This year, the top producers who sell Penn Mutual products have a goal they and spouses will number somewhere around 500. must meet or exceed, and the conference provides Last year, in Hawaii, they totaled over 600, but 2008’s conference was a little different. For the first time, recognition for that. Penn Mutual is a private company, essentially the National Sales Leadership Conference, attended owned by its policyholders. The somewhat old-fash- by field leaders, managing partners and regional ioned structure of Penn Mutual, founded in 1847 directors who manage Penn Mutual’s sales offices, and the second-oldest mutual insurance company was held in conjunction with the top producers conin the nation, means its top managers are able to ference. The first two days were dedicated to them, think long-term, instead of focusing on the current and then executives stayed to host the producers and their families for four nights and three days. Chris Gaia, vice president of marketing for Maritz Travel in St. Louis, which partners with Acton to produce seven conferences each year, said, “We’ve done some research, and there’s a real meaningful role for senior leadership being at those meetings in terms of creating the whole experience.” Gaia said the research shows the opportunity to network with executives is “a very important part of how the salespeople view the whole experience. That’s where a lot of connections are made.” Penn Mutual’s conferences also deliver training on such topics as annuity sales and building an insurance practice. They also are an important link in the company’s distribution chain. “We believe in the face-to-face value of relationship-building with our producers,” Acton said. Acton relies on Maritz to help her find viable locations that are safe and can handle a large group. Maritz also prescreens destination management companies.“We’ve been working with Maritz for 13 years,”she said.“They have taken on the detail work, so I can really focus on the strategy.” In addition to rewarding substantial sales, Acton works to make the conferences memorable bonding and educational experiences. “We rely on our conferences to do so much, which is to educate, reward and motivate,”she said.“It’s not just that we network with top producers, we educate them. It’s not only recognizing them for what they’ve done in the past, but it’s preparing them for the future.” r U.S. Loyalty Program Membership Soars embership in travel and hospitality industry loyalty reward programs has climbed to 556 million, according to the 2009 Colloquy Loyalty Census. The census numbers showed airline frequent-flyer programs with 277.4 million members, up 9 percent from the 2007 census; hotel reward programs with 161.9 million members, up 26 percent from 2007; and gaming reward programs with 106 million members, up 37 percent. Colloquy measured cruise line and car rental programs as a separate travel sector category for the first time in its 2009 census, tabulating membership at a total of 10.7 million. Industry experts generally identify American Airlines’ creation of the AAdvantage program in 1981 as the launch of today’s loyalty marketing era. M “The travel industry pioneered the modern loyalty program,” said Colloquy partner Kelly Hlavinka, who co-authored the 2009 census white paper with editorial director Rick Ferguson. “As first movers, they have the accolades—and the bruises,” Hlavinka said, noting airline and hotel loyalty operators face a new challenge, given the ubiquity of loyalty programs in sectors like financial services and retail. “We found in the 2009 census that the average U.S. household has enrolled in over 14 loyalty programs, yet participates in only about six,” she said. Despite increased scrutiny that dreadful airline financial performances has brought on frequent-flyer program value, Ferguson said, “Airline mileage sales are still so lucrative for many airlines that it’s hard to imagine these programs scaling back anytime soon. In some cases, the airline makes more money selling miles than they do flying planes.” —Leo Jakobsen May 25, 2009 MeetingNews 19 www.meetingnews.com http://www.meetingnews.com

Table of Contents for the Digital Edition of Meeting News - May 25, 2009

Meeting News - May 25, 2009
Contents
Newsmakers
MeetingNews Research
Viewpoint
Meetings Tech
Meetings Spotlight
Construction Cites
Meeting People
Incentive Insider
Travel Dashboard
Dateline: Reno, Nevada
East Regional
Dateline: Texas
Mid-America Regional
Golf Meetings
Resort Showcase Contents
Atlantis
Beau Rivage Resort & Casino
Bellagio
Harrah’s/Harveys Lake Tahoe Casino & Resort
The Venetian and The Palazzo Las Vegas
Radisson Aruba Resort, Casino & Spa
Special Section: Florida

Meeting News - May 25, 2009