POL: Sales Incentive Scheme - Crown Offices

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LTB 763/08 - POL: Sales Incentive Scheme - Crown Offices
07 October 2008

Issuing officer(s): Andy Furey

No: 763/08

Ref: 101a

Date: 07 October 2008

TO: ALL BRANCHES WITH POSTAL MEMBERS

Dear Colleague

POL: SALES INCENTIVE SCHEME – CROWN OFFICES

I am pleased to be able to advise you that initial reports indicate that average bonus payments for Quarter 2 will be equally as good as Quarter 1, possibly even better.

Unfortunately, at this stage, I am unable to provide exact details of bonus payments for Quarter 2, however, this information should be available by the end of next week, at which point a further LTB will be produced.

As you would expect, we have been in regular discussions with POL regarding bonus arrangements. In particular, we have recently reviewed the bonus weightings for individual products. To this end, we have agreed a revised distribution allowing for greater emphasis on the majority of Financial Services products.

In essence, we have increased the value of a number of key products that POL are expecting to be popular with the public due to concerns emanating out of the credit crunch and the resultant pressures on the economy and, in particular, savings.

The precise details of these changes are contained in the joint statement below. Critically, the value of the Financial Services products have increased for Quarter 3 from £8 to £9, an increase of approximately 12%. Undoubtedly, this change has the potential to provide greater opportunities for enhanced bonus payments.

“Joint Statement on Sales Incentive Scheme

Thank you for your hard work during Quarter 2, we saw an incredible response from customers to our savings products and are expecting another good bonus payment which we will be communicating soon.

We have reviewed the Sales Incentive Scheme, and have decided to concentrate on a smaller number of key products in Quarter 3 including increased payments for most Financial Services products.

We have improved the incentives to support new products including the ISA and the new issue of the growth bond whilst building on the traditional Christmas increase in premium mail services.

It is important to note that we remain committed to the entire range of focus products, and while some products will not attract an incentive payment this quarter, all remain important for the long term.

The Focus products and the bonus paid for each sale during Quarter 3 are outlined below:

Financial Services

These products are worth £9

· ISA

· Growth Bonds

· 5 Year Saver

· Instant Access Saver New Accounts

· Credit Card

· Life Insurance

· NS&I Easy Access Account Opening

· NS&I INV Account Initial Deposit

· NS&I ISA New Account

· Travel Money bonus remains at 0.025% of value.

· Travel Insurance Annual bonus increases to £5

Government Services

* Government Services Passport (check and send) £0.85

Mail & Retails

These products will earn bonus at £0.01 by volume.

* Parcelforce 24 & 48
* Special Delivery Smartpost

Telephony

* Telephony E Top Ups earn bonus at 0.1% of value

The following products will not attract bonus in Quarter 3:

* Personal cash withdrawal
* Motor and home insurance
* Mortgages
* Single travel insurance
* Moneygrams
* Homephone and Broadband

The increased amounts for Financial Service products represent a great opportunity to increase sales and bonus payments. The good news is we are on target for approximately £4million of bonus payments in 2008/09, assuming sales targets are met.

The bonus amounts will remain fixed for the duration of Quarter 3 but are likely to be revised for Quarter 4 in light of marketing activity and due to seasonal variations. New Focus products and/or changes to the bonus arrangements will be shared with you at the start of each quarter.

Andy Furey Richard Barker

Assistant Secretary General Manager – Crown Network”

Finally, the anticipated outturn of Quarter 2, coupled with the results of Quarter 1, leads us to believe that the target of £4 million of bonus payments for 2008/09 is well within the grasp of our members. The changes to the individual bonus weightings, described above, will assist our members in achieving greater sales of Financial Services products with resultant improved bonuses.

Branches are encouraged to ensure that this LTB is brought to the urgent attention of our Crown Office members.

If you have any enquiries, please email cbowers@cwu.org

Yours sincerely


Andy Furey

Assistant Secretary