Incentive Dilemma: plus articles and information on Sales Manufacturers and
distributors are rolling out more sales incentive programs for their channel
partners than ever before. Some of these programs are not as suessful as they
could be
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sale , however, because they fail to appreciate fully what motivates
salespeople and drives them to overachieve. Read on to learn six key concepts
that can make your incentive programs more effective. The dangling of the
proverbial carrot is an ancient art that is monly understood to be at the heart
of human behavior, psychology, motivation, and, in particular, business.
Manufacturers and distributors monly use this technique with their channel
partners in an effort to add unique motivational value to move specific products
or services. The reason this technique has stood the test of time is because,
for the most part, it works! At times,
however
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deals , elements of the technique are executed improperly. Sales incentive
programs under perform or fail as a result. The moary values of incentives are
often not the critical factor in motivating sales people to sueed. Take my own
example. I was fortunate to work in an industry that provided an unending supply
of incentives and awards for overachievement. I knew that, if I won every trip,
every TV, every incentive offered, the money would e with it! For me, the money
and the goodies were not my primary motivation. My philosophy was simple; "If
you win all the incentives there are to win, you couldn't help but be at or near
the top every time." Corporations use incentive programs to drive behavior and I
agreed to play the game and conform to their wishes; what gets rewarded, gets
done. The problem, from the vendors' point of view, is that not all salespeople
are motivated the same way.
Consequently
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boots , not all incentive programs work. Why is that? From my experience,
I'll make the following observations: 1) The 80-20 Rule: Twenty percent of the
salespeople make eighty percent of the sales and profits. Too often, sales
incentives ? perhaps in an effort to be fair ? are geared to the entire sales
force or VAR channel. The risk in a program like this is that the glove that
fits everyone, in the end, fits no one. Enlightened marketing strategists know
that the top twenty percent are already motivated. Simply put, a strategy that's
geared to light a fire under the next twenty percent ? the next logical group ?
doubles the business in a more cost efficient manner. 2) The KISS Theory:
Salespeople by nature are like electricity. They naturally take the path of
least resistance. That's not to say they are lazy or untoward. In fact, it's
just the opposite. Good salespeople look to simplicity to make things happen.
Often, incentive programs fail miserably because of innate plexities either in
their recording and reporting systems or in how rewards are won. If you put the
salesperson in a position where they are forced to assess "To get this, I first
have to sell this, plus these and not these and they must include
these
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sale ," you are creating a recipe for confusion, sales frustration and
failure. In the end, the incentive program bees a disincentive! The remedy?
Manufacturers must keep the program sweet and simple and attainable. There can
be no ambiguity. Anything less will result in a lack of interest, as well as a
waste of time and money that can sometimes spill over into other departments
whose task it is to administer and aount. 3) Education: Edison may have invented
the light bulb, but it never went anywhere until a salesman understood its
benefits and made the first sale? and probably sold a lamp to go with it!
Incentive programs don't just sell themselves. Too often, expensive motivational
programs are overlooked in the field because reps either don't understand their
value andor are unsure how to sell them. Many times, good programs are written
off as having missed the target, when in reality, they just weren't rolled out
and managed properly. 4) Competition: Everyone's heard the expression, "Timing
is Everything!" This is particularly important sage advice for the suessful
incentive program planner. Marketing execs can't know when every petitive
incentive program will rear its aggressive
head
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but they can take strides to ensure their program is given first look. Any
suessful salesperson will tell you, "Most sales are made as a result of due
diligence on the front end." Simply put, the better the preparation, the more
likely the sale. The same can be said for incentive initiatives. Real incentive
programs, like new movie releases, are something to be anticipated. The right
amount of promotion ensures greater aeptance and interest that often usurps
focus on peting programs. 5) Reward: Any reward-value can bee an unmotivated
anticlimactic activity if the time span between winning and getting, is too
long. Suessful incentive programs reward immediately! As a rule, the faster the
reward is delivered, the greater the enthusiasm for the program. Although on
some levels, salespeople are a plex
breed
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when it es to incentives, they are ? for the most part ? quite predictable.
Their nature is to react to excitement or challenge faster then most, and then
move on. One way to maximize their natural bent and ensure greater program suess
is simply to cater to their natural motivators. "Get them their stuff QUICKLY!"
6) Recognition: At the risk of making salespeople appear shallow or monolithic
(they are not), recognition amongst their peers is still the quintessential
motivator, whether there's an incentive program or not. The rule again, is,
there is no such thing as TOO much recognition! Salespeople by nature gravitate
to the limelight much like other performers, and so there should be no shortage
of achievement and overachievement recognitio<
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