Offering more incentives in more eligible locations by algorithmically generating additional rewards for employees with every shop
Dynamic Incentives are a new capability within SmartShopper. It is our proprietary methodology for setting incentives based on a predetermined percentage of savings, and not on predetermined dollar amounts. They increase the likelihood that employees will shop for and redirect to lower-cost options by increasing the number of locations to be incentivized—and therefore increase the likelihood that employees and employers will share in more savings opportunities.
How dynamic incentives differ from static incentives
Dynamic incentives are calculated and applied based on the straight average of the low-cost options in a shop event. Because static incentives are predetermined incentive amounts with a fixed limits that are applied to the top two or three low-cost options in a shopping event, they may leave low-cost options non-incentivized when the shopping event results more low-cost options than static incentives are programmed to provide. Dynamic Incentives help solve for this by calculating and applying incentives based on shop results that include other low-cost options previously non-incentivized with static incentives.
Because this method creates broader savings opportunities that will lead to significantly greater engagement and is delivered with an updated algorithm, once dynamic incentives go into effect the fixed incentive tiers referenced in any incentive lists that you were provided, or are referenced in your contracts, are no longer applicable.
What are the benefits of dynamic incentives to employers and employees?
Dynamic incentives increase employer savings opportunities by creating more incentive opportunities for their employees. The dynamic incentives methodology improves the number of incentive options–and the guidance driving redirection–for urban, rural and multi-state providers. They offer an increasingly personalized experience by opening a wider search result without the employee needing to take any additional action and create greater awareness and interest in locations with incentives that may not have existed before.
This solution is being piloted now with several clients, with the intention of converting most clients by January 1, 2021. If you want to learn more about a pilot, schedule a meeting.