Sales incentive programs have the power to spark passion within your sales force. Especially in a competitive market, there is increased pressure on the sales team to go the extra mile. Recent studies show, successful incentive programs can motivate sales people to go above and beyond, boosting their performance anywhere from 25% to 44%. There is no one-size-fits-all program – a reason why there are so many different systems and approaches. But, successful incentive program design always begins with good questions. Start by asking these three key questions:
What is it that we are trying to achieve through this incentive program?
The goal of most sales incentive programs is to modify participant behavior to grow sales and keep sales reps engaged. Answering the questions below will help you better define your objectives:
Am I rewarding the right behaviors and performance indicators? Without understanding what needs to be rewarded to achieve the company’s overarching goal, it is very difficult to bring value to your program. This is an important conversation that you need to have with all stakeholders involved with the program. Incentives help modify sales rep behavior so using them in an efficient way is essential in achieving your sales revenue targets.
Have you established attainable goals and rewards to target your top, middle, average and under performers? There’s an adage that states the top 20% of your sales team generates 80% of sales. These top-tier employees tend to claim most of the praise and available rewards, leaving future top-tier producers hidden in the crowd and feeling unvalued. An effective incentive program also targets promotions to the next 20% tier of capable employees, laying the motivational groundwork for their entrance into a top-tier.
What is the overarching goal of my company? Am I targeting the right behaviors to achieve that goal? If the goal of the program is to increase referral sales and that is not clearly targeted by the program, then the program is set up for failure. Referred customer usually have a longer tenure with a brand so promoting referrals can increase the number of loyal customers. The point of the incentive is to really understand the customer, cater to their needs, and provide the right solution. However, if you decide to reward all sales equally, then reps would sell at all costs because this is the rewarded behavior.
Do my desired performance objectives align with a worthy reward?
If the program is designed correctly it should produce results that optimize workflows and increase engagement. Clear rules for the program need to be set up and communicated with the participants. Below are a few questions that will help you better understand a successful program design.
Are the goals achievable? Is everyone getting a fair shot? Goals are supposed to be challenging but if the targets are set out too far, there is a loss in engagement over time. The goals should be set where everyone gets a fair shot at achieving them. The idea here is to drive more engagement and with more sales targets being achieved, sales growth will follow.
How motivating is my plan? If your program is structured to get sales reps to sell more than they currently do, you are motivating them. Remember, this includes all sales reps, not only the high performing ones. Also rewarding behaviors such as attaining additional trainings or certifications can go a long way in creating a company culture that rewards higher education.
Are my reward choices in line with what employees prefer? For an incentive program to work—for employees to be engaged—there must be a reward that has a high perceived trophy value and is appropriate for the desired goal. If the goal is to boost sales performance, a once in a lifetime travel opportunity reserved for the best-of-the-best remains one of the most powerful motivators. Through travel incentive opportunities, morale is boosted, productivity is heightened, and employees return from vacation re-energized and ready to make sales. Prepaid reward cards are another great reward solution. Prepaid reward cards provide the flexibility, freedom, choice, and all-around motivational power you need to drive success. Plus, with the convenience, variety and customization that prepaid cards offer, it’s easy to see why so many companies are choosing prepaid rewards for their corporate incentive programs.
Am I communicating program rules and updates clearly with my participants? It may seem obvious that communication is an important element in incentive programs, but far too often communication is the most overlooked piece of the puzzle. Even the most exciting, big budget program runs the risk of failure if your message is not articulated clearly, thoroughly and often to those you wish to reach.
What tools and processes are necessary to produce the desired result?
Am I using the best tools to monitor and run this program? One of the most important part of running a sales incentive program is having the right platform with the tools you need. Running sales incentive programs offline and through spreadsheets can be cumbersome, inefficient and costly. You need a nimble, web-based platform where participant and program interactions are recorded, analyzed, and utilized to enhance the program as well as the participant experience.
Is my platform simple enough for the participant to stay engaged? If your platform is too complicated for the rep to interact with, program participation will be lower than expected. This is a huge problem with a large number of incentive platforms, they are too complicated and don’t offer any real value to the participant. In order to ensure high engagement levels, a simple, easy to use platform is key.
Do I have access to real time reporting? Are all the program interactions being recoded and reported to me? Metrics drive sales incentive success. Be sure you are gaining valuable insights into your program and your participants with intelligent reporting that tracks: participant enrollment, progress, claims, top performing products or locations, awards funded, redemption and more.
We hope these questions help you figure out how to build a successful sales incentive program, as it pertains to you.
To discover more about these programs and how they can boost your revenues click here to contact us. JNR is a proven single source for strategic partnerships and solutions, offering an experienced team of employees, progressive technologies, best industry practices, and a network of worldwide resources, which support our ever-evolving portfolio of unique, effective and memorable business solutions.
Written by: Shay Malhotra, Marketing Manager | Card Services & Technology Solutions