Sales Incentive Creation and Development
Developing a sales incentive program that effectively works is highly important, and if not done correctly, you may find that you won’t achieve the results you desire.
A sales incentive program is a scheme used to encourage and motivate actions or behaviour from a group of people, particularly within the work environment, during a specific time period. When a sales incentive program is done correctly, business growth can be boosted significantly which benefits both the employee and the business as a whole.
Incentives can take the form of bonuses, rewards, commissions, contests or anything else that you think your employees will be happy with as a way to remind them of their hard work. To ensure that your sales incentive program works, it is important to remember to align this with the different roles within your business to drive the right sales behaviour, as well as basing this on the company culture.
Fortunately, Alset Partners are highly experienced within this area of business and can provide useful tips and advice when creating and developing a sales incentive program.
Find out what motivates your employees – This is crucial when developing your sales incentive scheme and is the key to making it a success. Find out from your employees what will motivate them and offer several incentives that might interest them, also remembering to think beyond money as well. Knowing what will motivate your employees means they will most likely achieve the rewards you are offering.
Incentives should relate to business objectives – It is important to remind employees how your incentives relate back to the business and its objectives. Relating your incentives to your company ethos will give a better meaning of why you have chosen the incentives you have and will further motivate employees.
Incentives must be simple – When developing your incentives, don’t over-complicate them and stick to ideas which are easy to understand. Many sales incentive programs fail because they are too complex and the employees do not fully understand what they need to do to achieve them. If the scheme is too complicated, this could potentially impact business income and how this can be maximised.
Ensure you effectively communicate your incentives – Employees obviously need to be aware of the incentives you have put in place, and how you communicate this is vital. It is important to build up excitement amongst staff and make sure they are all aware of the incentives plan by sending out flyers, putting up posters around the office and sending emails to employees. This also links back to the previous point of incentives being simple, as this is easier to communicate.
Set realistic quotas – Sales representatives need to be aware of their quota, and setting reasonable quotas that are realistically achievable will keep them focused and motivated on the job. Quotas which are challenging yet not too difficult to achieve are what businesses should focus on.
Bonuses must be a decent amount – If your business is offering a bonus reward as part of your incentives scheme, it is important to remember that the amount you pay must be a reasonable amount. If employees are aware of how much they will be rewarded with if they achieve their bonus, this again will lead to further motivation.
Employees should control the outcome – This also links back to bonus amounts if your business follows a scheme which determines how much bonus money they will achieve based on their performance. Also, the quality of the employee’s work may also have a significant effect on the amount of incentive earned, so it is important that they are aware of this.
Choose unique incentives – Every job role that is taken on will depend on what kind of incentive will suit each individual. Although offering a bonus is a good incentive, try and think more outside of the box to offer each member of staff something which is unique to them. You may have to find out a little more information on what will motivate them, however it will definitely be worth it in the long run.