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3 Mistakes to Avoid in Your Sales Incentive Program

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Information about 3 Mistakes to Avoid in Your Sales Incentive Program
Business & Mgmt

Published on January 9, 2014

Author: BIWORLDWIDE

Source: slideshare.net

Description

If your sales incentive program is producing fewer results than expected, it may be time to examine your design approach. Often the tools and tactics we think will help sales really take off wind up falling flat. What’s worse, by the time you discover they’re not working as planned, you’re further into the fiscal year — and even further behind on hitting your targets.
If sales incentive programs are taking up more of your time and money while producing fewer results, it might be a good time to examine your design approach. BI WORLDWIDE contends that these are the top three most common assumptions holding back your sales incentive success.
Stagger run rates from the start.
Let’s say you try to apply a 10% growth factor across the board in your incentive program. The risk you take in doing so is potentially asking too much from your top performers over a short period of time, especially if they aren’t engaged.
There’s an issue at the other end too. A 10% increase may be far too easy to achieve for those with low run rates. And if your low performers have the best chance of winning, your program has some flaws. For those falling in the middle, 10% may be just right. To engage everyone with attainable stretch goals, divide your sales channel into low, medium and
high producers so that run rates are similar within each segment. Once this is done, you can:
• Craft appropriate goals for all three of your sales groups.
• Adjust the award values by group to reflect the variance in incremental contributions. A word of caution regarding award structure: avoid decreasing values for lower groups so much that they lose interest. Choose awards valuable enough to make all participants feel like winners when they reach their goal.
In the end, improving your company’s sales incentive results only takes a few simple changes. Just remember these three takeaways:
1. Excluding those who aren’t at quota removes a potentially huge amount of program lift. 2. 70% of a program’s incremental results comes from outside the top 20%.
3. By segmenting your audience and customizing goals and awards, you give everyone a chance to earn an award for growth that is valuable.
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Is your incentive program structure limiting your sales growth? Australia | Canada | China | India | Latin America | United Kingdom | United States

Often the tools and tactics we think help sales, really end up falling flat. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

If sales incentive programs are taking up more of your time and money, while producing fewer results – + BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

If sales incentive programs are taking up more of your time and money, while producing fewer results – it might be a good time to examine your design approach. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Here are 3 common assumptions holding back your sales incentive success. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

“We pay our salespeople to hit their goals.” BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Fewer than 50% of sales reps actually hit their numbers. If you only offer awards to those who hit their quota, you’re missing out on a real opportunity to increase sales. Create award goals that are appropriate for individuals’ run rates. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

“We have an 80/20 rule in our sales force.” BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Many assume that 80% of sales come from the top 20% of the sales channel. However, most have never actually measured it. A major sales lift can be generated across your entire sales force if the opportunity is there from the start of the incentive program. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

“We keep our short-term incentive growth goals the same for all reps.” BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

The “one size DOESN’T fit all” approach makes the most sense in programs created to to increase results. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Read the full story... with statistics, exercises and an infographic by downloading our article today. Australia | Canada | China | India | Latin America | United Kingdom | United Satees | BIWORLDWIDE.com

follow us... BI WORLDWIDE uses the principles of behavioral economics to produce measurable results for our clients by driving and sustaining engagement with their employees, channel partners and customers. Australia | Canada | China | India | Latin America | United Kingdom | United Satees

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