How to Select Sales Incentive Programs to Pump Sales in a Small Business
Sales managers have long recognized the importance of incentives. These are the rewards that salespeople receive upon completing their respective sales targets. But it’s the small business owners who find it harder to create a sales incentive program than managers of giant corporations. If that’s your concern too, then this article will help you out. Also, click here to learn more.
Know Your Goals Before Incentivizing
Before creating an incentive program, you must be clear on your goals. Your salespeople should have clarity on what the company is trying to accomplish and your expectations. Is it merely to close more sales or increase the sales pipeline that will close in the future?
Based on the goal, you need to map the process that will lead up to that goal. It’s best if you give incentive to the salesperson for the actions rather than the sales number. This will keep them engaged and motivated in their work.
In this step, you’ll also have to decide the type of incentive you intend to offer. Is it a monetary, travel-based incentive, promotion, or anything else?
Types of Sales Incentive Programs You Can Create
There are different sales incentive programs that you can create for your business. You should select the one that best fits your company’s requirements and culture.
- Role-specific Incentive Program
In this digital age, employees from multiple departments may be involved in the sales process. Consider the sales process of cloud-based software products. Other than the frontline sales reps, employees like product managers, customer service reps, and software engineers might also be involved in the closing process. In such cases, you need to incentivize different employees differently rather than rewarding everyone the same thing or hiring commission only sales reps.
- Split Incentive Programs
There will be products that require the commitment of two or more salespeople. In such cases, you need to ensure that everyone works together to make the sales happen. So you have to split the incentive when the sale is closed. This is more common among sales reps located in two different geographies. With a split incentive, each of the rep will be encouraged to work together.
- Self-Select Incentive Programs
Another popular incentive program that’s relatively new is the self-select incentive program. In these programs, the sales reps are allowed to select the task themselves. This way, they can manage their workload according to their skillset and convenience.
Multiple studies have proved the effectiveness of this type of incentive program. There’s a significant increase in performance, and the programs are more durable.
There are other types of incentive programs too, which are tailored to your business. It’s a matter of finding the perfect fit.
Keep Everything Simple
When designing incentive programs for the sales team, it’s best to keep things concise and straightforward. Complex programs that involve reviews, reporting, and approvals may end up discouraging the sales force. A simple incentive program should always deliver on its promise that “If you do X, you’ll receive Y in return.” You should have no ambiguity throughout the process.
When designing the sales incentive programs, it’s better to include the sales reps in the process. They should be able to see their performance and incentives in real-time. Cloud-based sales incentive tools allow everyone to access the incentive program and get instant updates on their tally. Click here to learn more about it.