Virtual rewards

user-gravatar Headshot
Updated Feb 23, 2015

Customer-Loyalty-ProgramBusinesses often use loyalty programs to influence their customers’ buying behaviors. Some in the transportation industry use similar programs to increase driver engagement.

Loyalty programs typically use points as currency. Websites and mobile apps are a convenient way for the customer, or in this case drivers, to track points and convert them to rewards.

Engagement in a rewards program is a combination of two factors: the attraction of certain personality types towards such programs and the robustness of the rewards, says Tim Hindes, chief executive of Stay Metrics. To amplify both factors, Stay Metrics, which administers rewards program for clients, advises that fleets put an equivalent of $350 per year in points in for each of their drivers. Stay Metrics has some clients that pony up $2,000 per driver.

P&S Transportation, a 975-truck flatbed carrier based in Birmingham, Ala., uses the online “Drive for Gold” rewards program administrated by Stay Metrics. Drivers visit the website regularly to track their points and exchange them for a wide selection of rewards from an online catalog.

At P&S Transportation, drivers are introduced to the program at orientation and immediately earn points by completing the fleet’s safety training from the website. To increase fleet wide participation, management decided to set up driver work stations at each terminal and create new reward categories.

An “accident challenge” category gives drivers a chance to review a recent accident at P&S and suggest preventive counter measures. The entries are judged and points awarded to the top three responses, which are then posted online for all drivers to see.

The website also serves as a communications hub for drivers to see company news and announcements. Reports show which drivers use the program and which do not, giving driver managers an indication of who needs help to get involved.

“The drivers view this program as a benefit,” says Johnathan Marshall, director of safety. “And we know that they are receiving the information from safety meetings and company announcements.”

Partner Insights
Information to advance your business from industry suppliers
Maximizing Fleet Cost-Effectiveness
Presented by Michelin Connected Fleet

P&S Transportation rewards points to drivers for safety performance, roadside inspections with no violations, and fuel preservation. Drivers can earn additional points for completing an online, anonymous survey at the seven and 45-day employment mark.

“The survey has been instrumental in fixing problems quickly that we may have not otherwise known about,” he says.

Stay Metrics provides its fleet clients with survey results and other research, along with conducting exit interviews with drivers.

“The exit survey allows us to review areas of concern that were not provided by drivers during their employment. This encompasses all areas of our organization and information is shared with all department heads,” he says.

Trans-United, a 75-truck flatbed carrier, has decreased its monthly driver turnover rate by more than nine percent since it started using Stay Metrics one year ago. The company has grown by 20 percent in that timeframe, says Jeff Fleming, president of the Burns Harbor, Ind.-based fleet.

Trans-United named its rewards program Drive for Green. Drivers access the website anytime using iPads supplied by the fleet. It rewards points to drivers for tenure, safety, revenue, customer service, clean logbooks, fuel savings, and when operations “like what they are doing,” he says.

Among all carriers that use Stay Metrics, the drivers who are not engaged — those who do not log into the rewards program at least three times per month — have a 48 percent turnover rate. Drivers that login frequently have a 28 percent turnover rate.

Fuel savings>>

Efforts to improve fuel economy have traditionally been met with fierce headwinds. Drivers quickly lose interest if they feel penalized by factors they do not control like load weight, weather and topography. New apps give drivers immediate feedback and score them fairly to increase engagement.

Performance pay>>

Carriers are using the amount of data they have available on driver performance to create sophisticated performance-based pay packages. These efforts are a way to increase engagement by putting drivers’ income in their own hands.

Extending fleet mobility>>

For fleets, one of the advantages of Android and Apple devices is that most drivers — and especially the younger generation — are already familiar with the technology and appreciate the many conveniences provides.

Same-day pay>>

Perhaps one of the most tangible benefits that fleets can offer their drivers is same-day pay. Mobile apps that capture images and integrate with payroll and billing systems in the back office have become essential to make this a reality.

<<Return to beginning

Looking for your next job?
Careersingear.com is the go-to platform for the Trucking industry. Don’t just find the job you need; find the job you want with the company that wants you!