It’s estimated that over 127 billion dollars are spent on internal sales incentives and channel sales incentives each year- and sales managers have long appreciated the value of non-cash rewards to get that incremental lift in sales performance over established, traditional commission-only programs.
Sales managers have competing views on the most effective types of sales incentives. One school of thought maintains that cash prizes are always preferable to products and services, for they give their recipients total liquidity with which to buy the things they want or need. Proponents of this theory allege that trips, vacations, and other novelties may be squandered on sales reps who have no desire to use them.
In today’s business climate, it’s essential that you know all there is to know about sales incentives and reward marketing and the results they consistently delivers for leading companies in every important product and service business in the nation.
What form of marketing can a company turn to that doesn’t cost but pays?
Sales Incentive and Reward Marketing.
The most important fact of all: sales incentives and reward marketing deliver increased profits-without risk, without cost, without delay, without question. A sales incentive program is the only crap game in the world where you make your bet after you hit your point. Meaning of course that not one sales person or any other participant in a reward program receives any kind of reward until she/he has exceeded the pre-set sales quota or goals that pays for the reward and delivers a healthy plus profit to a companies bottom line.
Sales incentives and reward marketing deliver increased profits–without risk, without cost and without delay. It’s the only crap game in the world where you make your bet after you’ve hit your point. Meaning no one receives a reward until they exceed the preset sales quotas.
It will work for sales people, and other employees and of course customers. In today’s business climate, it’s essential that you know all there is to know about sales incentives and reward marketing and the amazing results it consistently delivers for leading companies in every important product and service business in the nation.
Sales incentives should be separated by long and short-term goals: You should work out different strategies for sales incentives for long-term and short-term goals. As for long-term goals, non-cash incentives are useful for intrinsic motivation, as these often motivate employees to attain the sales targets that you have set for the company over the long term.
Sales incentives are like two sides of a coin:
A sales incentive is like a coin that has two sides, where one side is monetary and the other non-monetary. You can give sales team members a choice of both. Ask them which they would prefer, cash or non-cash (like trips, dinners, etc). Generally, both recognition and money motivate people to perform better.
Adding non-cash rewards to sales compensation can create excitement and competition within your direct sales team; launching a customer loyalty or reward program allows you to market directly to end-users and get your dealer/distributor network energized and aligned with your channel sales objectives. Direct sales incentives come in many forms, from cash bonuses for selling a given amount of a specific product, to selling to reach a specified sales quota. Some of these direct sales incentives do not always have an immediate cash value, but the idea of company wide recognition for that month, quarter or year, with perhaps an end of year bonus.
Our experience shows sales incentives to be effective motivational levers that can ramp up and sustain sales results – they are powerful managerial tools that should warrant consideration in any sales strategy.
We employ practical experience in sales leadership and management along with the latest research, tools, and technology to create real results with sales incentives that drive the entire selling machine. Find out now how we could assist your business.