Sales Incentives: Everything you need to get started
Sales Incentives: Everything you need to get started
If you wish to boost productivity and keep your sales employees engaged, you need to invest in a viable sales incentive program.
But what is meant sales incentive, though?
When designed and planned the proper way, a sales incentive program can increase a sales employee’s performance manifold times. Incentivizing helps boost the morale of your team.
Wish deciding the right incentive program was an easy task, though. It isn’t. On the contrary, it is an uphill battle because you need to know what appeals to and motivates your people continuously. That is why we have prepared this sales incentive guide program so that you can get started on the right note.
What is sales incentive?
Incentivizing your sales team means rewarding the professionals in your team who are able to meet their given targets or exceed them. You can consider monetary or non-monetary rewards for your team or a combination of both.
Sales incentives are given over and above the standard compensation or salary structure. Identifying the need for an incentive program is based on the organization’s objective to keep the ground team motivated. The Incentive Research Foundation or IRF mentions in one of its studies that almost 90% of the top companies today have non-cash incentive programs to get the best out of their sales teams and channel partners.
What is the best sales incentive?
The best incentive supercharges your sales team. The right incentive program should be designed thoughtfully weighing the changing trends and the requirements of a modern workforce.
Incentives can be cash-based, non-monetary, or a combination of both.
Cash has been one of the traditional incentives for sales teams. Such incentives can be paid out annually, monthly, or quarterly. Non-cash incentives include company-sponsored trips, gift cards, concert tickets, gifting appliances, gadgets, etc. The best part about non-monetary rewards is that there’s a whole gamut of creativity that can be put to use to make the program innovative and novel. While designing non-monetary programs care should be taken to make it fun and enjoyable for your team.
A combination of cash and non-cash rewards has been observed to give the right push to the team.
Types of Sales Incentive Programs
- Role-specific incentives are given as per the salesperson’s role in the organization, and capabilities. In this case, organizations need to first identify the different roles that are involved in a sales process, and considering the importance of each of these roles, the incentives are decided. This way, you can prevent internal competition to turn into conflicting situations.
- Split Incentive programs are mostly used where employees need to work as teams. The incentives are split as per the pre-decided proportions or into equal parts, depending on the hierarchy or contributions of team members in achieving the results.
- Pre-sales incentives are rewards given to sales representatives at different stages of the sales process. This is essential today to keep the sales personnel motivated enough in a fiercely competitive market scenario.
- Omnichannel incentives work best in a digital scenario where there are human sales reps and computers working together to close deals. Rewards, in this system, are awarded based on the part sales reps play in the complete sales process.
- Incentivizing based on analytics-derived targets involves using analytical tools to make sales forecasts and projections. With advanced technology, these projections are usually pretty accurate. In such an ecosystem, incentives are metrics-based and value-driven mannerisms of the salespeople.
Best practices of Sales Incentive Programs
When designing sales incentive programs, care should be taken to ensure that these are productive. Here are some points to remember:
- Sales incentive programs are fallible. No program is perfect. Therefore, it is essential to revisit the programs every now and then.
- Communicate the sales incentive programs, in their entirety, to the concerned people. Ensure transparency. Hiding key and crucial parts is not a healthy practice. There should be SOPs and guidelines for the programs to ensure fairness to all.
- If possible, get your sales employees to sign the sales incentive plan so as to block out the possibility of conflicts in the future.
- Do not assume that sales reps are after monetary rewards only. Consider giving them non-cash rewards too.
- Take your salespeople in confidence so that they can give you feedback on the incentive plans. This will help tweak it effectively from time to time.
- Hire a neutral third party to review the sales incentive program to enhance it.
- An effective incentive program should be linked to the behavior of the salesperson and not just to the end results.
- Don’t just incentivize the top performers. Yes, it is important to do so to set a precedent and encourage others. But remember to have a program that rewards everyone, even underachievers so that they stay motivated.
- In the case of team achievements, remember to reward the entire team and not just the team leader or key people.
- When your salespeople are using novel and innovative ways to achieve their targets or go beyond, ensure that you highlight these creative ideas and award them accordingly.
Features of a good Sales Incentive Program
These are some of the embodiments of the best sales incentive program:
- Relatable, and easy to understand with specific details. The objectives are clearly stated. Salespeople have an unhindered view of the program.
- The program should be agile, relevant, and adaptable to evolve continually.
- Integrated with technology to automate all functions.
- Incentives should be realistic and attractive enough to motivate salespeople to give their best. It should include monetary and non-monetary incentives.
- The goals must be SMART (Specific, Measurable, Attainable, Relevant, and Time-based).
What are some examples of good sales incentives?
Some of the types of incentives with incredible results are:
- Hard Cash: This is basic and should be a part of all sales incentive programs. Your salespeople do look for cash pay-outs as an incentive; so, why deny them when they are toiling hard for your business? Rewards, in this case, need to be target-based and a clear structure needs to be set up.
- Physical Gifts & Prizes: Beginning from the latest tech gadgets to home appliances, hobby products like a guitar or a bicycle, etc., are good options to keep the team motivated. Present choices so that the team members can choose for greater satisfaction.
- Training & Development: Your salespeople are as keen to grow professionally as they are in cash and prize rewards. Offering them opportunities to get trained and move ahead in their career can be a big motivator for the team. Ensure that the training programs are professional courses that have a direct bearing on their present job.
- Entertainment: Tickets to a rock show, theatre play, hotel stays, restaurant vouchers, etc., are also good to motivate the sales team and gain their loyalty.
- Offsites and Adventure-activities: Rewards in the form of corporate offsites, and activity-based awards are also good considerations for incentivizing your sales team. These activities could be solo events or in groups like river rafting, ziplining, sky diving, etc.
- Subscription Boxes: You can infuse an element of excitement in your sales team by offering them subscription boxes. Some examples include gourmet food, skincare products, eco-friendly clothing, personalized treats, etc.
- Paid Leaves: Over and above the leaves your team gets annually, give them extra paid leaves to let down their hair and enjoy. After all, they do deserve a good break after toiling so hard.
- Recognition: Unlike all the others, this reward system does not need money or investment. It can be made into a company culture without too much effort. All human beings love to be socially recognized. When you offer recognition to your top performers using a platform like My Incentives, you empower them to work even better.
Summing it Up
Make the sales incentive program a part and parcel of your system. Remember to do so happily so that your people on the ground feel valued and look forward to boosting sales innovatively and energetically!
Keen to know more about My Incentives? Call us today for a one-to-one demo.
If you wish to boost productivity and keep your sales employees engaged, you need to invest in a viable sales incentive program.
But what is meant sales incentive, though?
When designed and planned the proper way, a sales incentive program can increase a sales employee’s performance manifold times. Incentivizing helps boost the morale of your team.
Wish deciding the right incentive program was an easy task, though. It isn’t. On the contrary, it is an uphill battle because you need to know what appeals to and motivates your people continuously. That is why we have prepared this sales incentive guide program so that you can get started on the right note.
What is sales incentive?
Incentivizing your sales team means rewarding the professionals in your team who are able to meet their given targets or exceed them. You can consider monetary or non-monetary rewards for your team or a combination of both.
Sales incentives are given over and above the standard compensation or salary structure. Identifying the need for an incentive program is based on the organization’s objective to keep the ground team motivated. The Incentive Research Foundation or IRF mentions in one of its studies that almost 90% of the top companies today have non-cash incentive programs to get the best out of their sales teams and channel partners.
What is the best sales incentive?
The best incentive supercharges your sales team. The right incentive program should be designed thoughtfully weighing the changing trends and the requirements of a modern workforce.
Incentives can be cash-based, non-monetary, or a combination of both.
Cash has been one of the traditional incentives for sales teams. Such incentives can be paid out annually, monthly, or quarterly. Non-cash incentives include company-sponsored trips, gift cards, concert tickets, gifting appliances, gadgets, etc. The best part about non-monetary rewards is that there’s a whole gamut of creativity that can be put to use to make the program innovative and novel. While designing non-monetary programs care should be taken to make it fun and enjoyable for your team.
A combination of cash and non-cash rewards has been observed to give the right push to the team.
Types of Sales Incentive Programs
- Role-specific incentives are given as per the salesperson’s role in the organization, and capabilities. In this case, organizations need to first identify the different roles that are involved in a sales process, and considering the importance of each of these roles, the incentives are decided. This way, you can prevent internal competition to turn into conflicting situations.
- Split Incentive programs are mostly used where employees need to work as teams. The incentives are split as per the pre-decided proportions or into equal parts, depending on the hierarchy or contributions of team members in achieving the results.
- Pre-sales incentives are rewards given to sales representatives at different stages of the sales process. This is essential today to keep the sales personnel motivated enough in a fiercely competitive market scenario.
- Omnichannel incentives work best in a digital scenario where there are human sales reps and computers working together to close deals. Rewards, in this system, are awarded based on the part sales reps play in the complete sales process.
- Incentivizing based on analytics-derived targets involves using analytical tools to make sales forecasts and projections. With advanced technology, these projections are usually pretty accurate. In such an ecosystem, incentives are metrics-based and value-driven mannerisms of the salespeople.
Best practices of Sales Incentive Programs
When designing sales incentive programs, care should be taken to ensure that these are productive. Here are some points to remember:
- Sales incentive programs are fallible. No program is perfect. Therefore, it is essential to revisit the programs every now and then.
- Communicate the sales incentive programs, in their entirety, to the concerned people. Ensure transparency. Hiding key and crucial parts is not a healthy practice. There should be SOPs and guidelines for the programs to ensure fairness to all.
- If possible, get your sales employees to sign the sales incentive plan so as to block out the possibility of conflicts in the future.
- Do not assume that sales reps are after monetary rewards only. Consider giving them non-cash rewards too.
- Take your salespeople in confidence so that they can give you feedback on the incentive plans. This will help tweak it effectively from time to time.
- Hire a neutral third party to review the sales incentive program to enhance it.
- An effective incentive program should be linked to the behavior of the salesperson and not just to the end results.
- Don’t just incentivize the top performers. Yes, it is important to do so to set a precedent and encourage others. But remember to have a program that rewards everyone, even underachievers so that they stay motivated.
- In the case of team achievements, remember to reward the entire team and not just the team leader or key people.
- When your salespeople are using novel and innovative ways to achieve their targets or go beyond, ensure that you highlight these creative ideas and award them accordingly.
Features of a good Sales Incentive Program
These are some of the embodiments of the best sales incentive program:
- Relatable, and easy to understand with specific details. The objectives are clearly stated. Salespeople have an unhindered view of the program.
- The program should be agile, relevant, and adaptable to evolve continually.
- Integrated with technology to automate all functions.
- Incentives should be realistic and attractive enough to motivate salespeople to give their best. It should include monetary and non-monetary incentives.
- The goals must be SMART (Specific, Measurable, Attainable, Relevant, and Time-based).
What are some examples of good sales incentives?
Some of the types of incentives with incredible results are:
- Hard Cash: This is basic and should be a part of all sales incentive programs. Your salespeople do look for cash pay-outs as an incentive; so, why deny them when they are toiling hard for your business? Rewards, in this case, need to be target-based and a clear structure needs to be set up.
- Physical Gifts & Prizes: Beginning from the latest tech gadgets to home appliances, hobby products like a guitar or a bicycle, etc., are good options to keep the team motivated. Present choices so that the team members can choose for greater satisfaction.
- Training & Development: Your salespeople are as keen to grow professionally as they are in cash and prize rewards. Offering them opportunities to get trained and move ahead in their career can be a big motivator for the team. Ensure that the training programs are professional courses that have a direct bearing on their present job.
- Entertainment: Tickets to a rock show, theatre play, hotel stays, restaurant vouchers, etc., are also good to motivate the sales team and gain their loyalty.
- Offsites and Adventure-activities: Rewards in the form of corporate offsites, and activity-based awards are also good considerations for incentivizing your sales team. These activities could be solo events or in groups like river rafting, ziplining, sky diving, etc.
- Subscription Boxes: You can infuse an element of excitement in your sales team by offering them subscription boxes. Some examples include gourmet food, skincare products, eco-friendly clothing, personalized treats, etc.
- Paid Leaves: Over and above the leaves your team gets annually, give them extra paid leaves to let down their hair and enjoy. After all, they do deserve a good break after toiling so hard.
- Recognition: Unlike all the others, this reward system does not need money or investment. It can be made into a company culture without too much effort. All human beings love to be socially recognized. When you offer recognition to your top performers using a platform like My Incentives, you empower them to work even better.
Summing it Up
Make the sales incentive program a part and parcel of your system. Remember to do so happily so that your people on the ground feel valued and look forward to boosting sales innovatively and energetically!
Keen to know more about My Incentives? Call us today for a one-to-one demo.