When looking into an incentive program to implement into the organisation, it is important to get your team 'buy-in'. You need to meet and discuss with your team what motivates them. For some, it is financial - e.g a monetary reward; it might be that formal verbal and/or public recognition drives someone; others might find material items a motivator as mentioned as an example, movie tickets; some may be inclined to be motivated by weekly small rewards followed by a quarterly and then annual prize - such as a weekend away, or team dinners, or I have even seen time in lieu as a motivating incentive. There are many more that you can look at as examples, however my primary point is that everyone is driven by something different, hence for a successful result, it is important that you as a team decide on what the incentives are, not that they are dictated by management.
My recent employer had no incentive or reward and recognition programs running. I began by designing a basic certificate and throughout the week, rewarding for exceeding KPI's and soft skills excellence i.e. providing outstanding customer service, or going beyond the status quo to achieve quality through continuous improvement etc. At the end of each week, points are allocated with free coffee vouchers, and monthly rewards going out for lunch at the local cafe - all financed by the company. The certificates are given publicly so that the team recognises each others efforts. Motivation is high, results are improving, team morale is excellent and customer service is at a far more genuine and positive level.
I have in the past held a team meeting, asked the team to think about what they feel would reward and recognise them and at the same time provide value to the role they play and the service they provide. I gave them 2 weeks as a team to come up with a plan involving timeframes, budget constraints, KPI inclusion and customer satisfaction. By allowing the team to work together to organise and create this, they bought into the project and the commitment level was greater, hence achieving greater results. Staff retention also improved.
Just some thoughts