Why do sales incentive programs matter? Well for that we need to tell you a story…
There is a light bulb joke that asked how many sales people it takes to change a light bulb with the punch line, “one but it’ll take technical support weeks to sort out the mess left behind”. In true light bulb joke fashion, the punch line exaggerates the stereotype of a group; however, anyone who has ever encountered a sales person can argue that there is some truth behind the punch line.
A sales person regardless of what is being sold is typically focused solely on his/her own goals, making commissions, and networking with as many potential customers as possible. A sales team in most organizations are scattered and spend most of their time on the road than in the office. When new products, upgrades, information is released from their organization, the team will receive multiple communication informing them of the change to the product they are selling however sometimes it seems they are still the last to know. This creates a discrepancy between what your company is offering and can deliver, and what your sales person is actually selling. How can we then motivate our sales team to consistently sell and hit their quotas while ensuring they are aligned with the goals of the organization and selling the right information to your customers?
A sales incentive program is one way of motivating a sales team. Sales incentive programs reward individuals who hit their goals and foster competition among the team. But a sales incentive program can do so much more than that. When used efficiently, a sales incentive program can also help align the goals of the sales person to the goals of the organization. Create a sales incentive program that is transparent, publicly accessible by the team and other leaders of the organization, and perhaps even consider having it open to the entire company to see. Doing so will hold your sales team accountable not only to their goals but of those company-wide.
Here are some tips and tricks on how to create a public and transparent sales incentive program that will drive desired behavior:
- Make it Valuable: Incorporate some form of trophy value where there is a tangible symbol of achievement and long lasting reminder of success and how the success was achieved.
- Choice, choice, choice:. Offer several varieties of rewards where the individual can pick the one most meaningful to them.
- Motivate specific activities by identifying the key behaviors you want to recognize and actions that maximize the sale without overpromising and ultimately compromising other departments.
- Incent the right behaviors early on.
- Incorporate a survey component to your program: Run product knowledge survey and award points to those who achieve 100{1988d9d489508ec78ab74a3fa170fc3a0f353566b665413f00453621c0c8b81d}, and publicly display those who did well in your sales incentive program.
By creating a sales incentive program that incorporates these tips, you will see a sales team that not only looks out for their own interests but is aligned with that of your organization’s as well.
