Ultimately, your incentive scheme should inspire your reps and make them feel valued and motivated to work hard. This way, your sales leads will be motivated to outdo themselves and your average reps will still have an achievable goal to reach. In this article, we will explore the ins and outs of implementing an effective sales incentive program.

WHY You Should Implement the Program

Implementation is best used when performance is below the target and management really needs to motivate the sales team to strive to improve performance to meet the annual target. Sales incentive plans, from a regular pay structure to goal-specific programs, can motivate employees and increase sales. Creating a program that rewards certain behaviors (such as increasing conversion sales, clearing old inventory, or completing tasks) will serve to reinforce the goal of meeting sales quotas or reaching milestones. The bottom line is that the right sales promotion program can have a big impact on productivity and profits.

HOW to develop the Program

You will get the best results with a sales incentive program that considers different segments of your channel partners (for example, large and small partners) and which incentives work best for a particular sales scenario. A well-designed promotion plan inspires your salespeople to excel while also putting your company on track to achieve your strategic goals. Sales managers and leaders are responsible for developing effective incentive programs, and the key is to reward the right behavior. Whether a company decides to delegate reward and recognition responsibilities to a sales manager, or seeks the help of a promotional program provider, running a successful promotional program requires critical steps to ensure your efforts have a long-term impact.

WHEN to Reward

Many companies integrate sales incentives as a recurring reward program when sales professionals achieve certain sales goals (for example, selling a certain number of products or generating a certain amount of sales revenue). These programs should have long-term goals but ideally also have short-term goals to keep the team motivated. SMART goals set you up for success by making goals specific, measurable, achievable, realistic, and timely. Here are the benefits.

• Helps you identify one objective at a time
• Uses a set of concrete criteria to guarantee your goals are achievable in each period
• Identifies metrics for success with measurable and quantifiable tasks
• Creates a trackable road map for getting there and monitors success

In summary, develop a 90-day incentive plan to reward those who perform higher and higher, and then implement a year-round sales incentive program so you do not find yourself in the same situation next year by utilizing SMART goals. In advanced sales scenarios, it also makes sense to reward your reps at all stages of the sale to keep them motivated. One way to do this is to encourage temporary progress on long-term deals by allowing reps to collect commissions before the sale closes and based on their progress in the sales funnel. For example, incentives can be linked to scheduling product demos for potential customers to keep sales reps motivated while customers consider purchasing software. Your employees will understand that achieving business goal X in sales will reward them with a bonus, and closing an X deal in the team will earn them a commission.

WHO to Reward

Your incentive program should allow all sales reps to play to their strengths. A good incentive program brings the sales team together to achieve common goals while creating a friendly atmosphere and healthy competition. Avoid toxic sales cultures by creating incentives your team must work together toward. The highest performers in your team are quick to hit sales goals and can reach the rewards of their incentives in no time. However, providing incentives to the entire team rather than just a single reward for an individual results in improvement-based efforts within the team. In this way, the plan can reward even poor performers for achieving a certain goal.

WHAT to Reward

Regardless of the type of sales, such as retailing goods, selling cars, or subscribing to services, incentive and reward systems are essential in the workplace. Promotions can be monetary or material rewards, experience-based rewards, or any other incentive focused on employee interest and motivation. Promotional programs can use non-monetary incentives, sales incentive funds (SPIFF), or both. An easy and effective way of showing your team that you care about their work and professional development is with gift cards. This simple reward is the validation your employees need to take risks and try more innovative approaches, further motivating your team. At RPG, we are here to fulfill all your gift card needs, from personalization to customer portals. Learn more about our services at RPG Card Services or give us a call at (888) 774-0125.

Cited Sources

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