SALES REWARDS
SALES REWARDS
Reward programs are among the few business strategies where the cost can be based upon performance and paid out after the results or goals are achieved. Many companies mistakenly view rewards as an expense instead of an investment.
The risk in providing sales rewards is often that the reward is strictly based upon achieving an objective that was above what was initially required. Putting in simple words, if the sales individual doesn’t achieve the objective, there is little or nothing to pay out.
Rewards definition: (From Encarta Dictionary)
-
A thing given in return – something desirable given in return for what somebody has done
-
The benefit received – a benefit obtained as a result of an action taken or job done
-
Something reinforcing desired behavior – PSYCHOLOGY something positive that follows the desired response and acts to encourage desired behavior.
Throughout my career in sales, sales reward programs were an influential strategy that the companies I worked for and my own company used consistently to drive more sales. They are what kept me encouraged going out as a young new sales member. Rewards kept sales interesting and competitive. The effects were many: increased sales, commitment to learning a new sales process, increased knowledge of a product, bragging rights, and of course the reward. As an owner, it is what kept my sales staff motivated to go out and sell more. It created a behavior that was rewarded.
Sales spiffs and sales contests are an important tool to use to drive more sales. Too many companies miss this opportunity because they view this as an expense instead of an investment.
-
Sales Spiff (quick-hit programs to focus the sales force on a specific product or service. It also offers additional rewards for sales during slow time periods or slow-moving products)
-
Sales Contest (usually a longer time frame, again offering rewards to those achieving specific goals in selling a product or service)
Sales rewards help provide needed incentives to drive more sales in many areas. The benefits included:
-
Creating interest in a particular product allows the sales individual to become an expert because of their knowledge of how to sell it.
-
Increasing sales during a traditionally slow time period.
-
Reducing inventory in slow-moving products.
-
Moving high margin items into the sales representative’s everyday selling product category.
-
Creating competition among sales individuals, teams and branches. This leads to an overall achievement in the knowledge of the product and how to sell it to the customer.
-
Excitement. Keeping the sales environment exciting and changing is another important function of rewards.
Sales down? Need sales to focus on rolling out a new product? Sales numbers stagnate and need a boost? Sales team just plain stuck in funk? Then change it up!
