“Reward employees and profits will follow” was the common belief for performance rewards and recognition programs designed during the millennium. And then, the recession hit. As budgets tightened and companies were pressured to demonstrate the ROI for sales incentives, managers have been challenged to come up with better sales performance measurement criteria.
“Over 60% of our client and vendor references have indicated that they do not have a sales performance measurement program in place, but intend to implement one within the next six to 12 months. Of the 40% that say they do measure sales performance, many of them have limited measurement capabilities,” states SalesHQ.Monster.com.
“In this ever-changing and highly competitive business environment, it is essential that any measurement program be able to determine internal performance improvement factors from external company and broader market and environmental factors,” the report continues.
SalesHQ has developed a report that will enable managers to create a business case for investments in employee motivation, sales incentives and recognition programs. Measurement is essential and needs to be timed exactly as the employee engagement begins as marketing materials are rolled out. Trailing indicators, like performance against quota, are the most commonly used criteria, but companies need to become more sophisticated in the type of measurements they are using to include their ROI for sales training.
A sound sales performance measurement program must not only consider history but provide predictive, actionable metrics to management. Developing a forecasting ability that will indicate trends is important. “The measurement program must be comprehensive, accurate, objective and provide useful information to management,” according to SalesHQ.
Customer loyalty programs are perfect candidates for sales measurement and forecasting. Set goals and measure results. Adjust, re-set goals and measure results. As the sales incentive programs become more well-known within the target audience, add in more performance rewards and measure again.
As you develop your sales incentive programs, you will see exactly how essential the measurement aspect of the program is to the program’s overall success. The better the measurement and goal-setting, the more likely you will be to achieve your desired results.
To read the full SalesHQ article click here
For more information on the benefits of a strategic incentive solution visit our website at www.jnrcorp.com
Vice President of Sales, JNR Incorporated