Improving Sales with Rewards

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Information about Improving Sales with Rewards
Business & Mgmt

Published on March 4, 2014

Author: BIWORLDWIDE

Source: slideshare.net

Description

When was the last time you looked at the mix of total rewards for your sales team? With the growing research in the field of behavioral economics, more and more sales directors and VPs are realizing that bigger salaries, higher bonuses and cash incentives are not always the answer.
It seems as though no matter how much money you throw at your sales team, you still wind up with some high performers who work hard no matter how you challenge them, new hires who still aren’t sure which end is up, a handful of slackers who may never figure things out and a mass of well-meaning reps who are literally caught in the middle. They want to improve their performance but something is stopping them:

Awareness: They don’t know WHAT to focus on
Learning: They don’t know HOW to improve
Measurement: They aren’t sure WHERE THEY STAND
Reinforcement: They aren’t convinced the rewards are worth the effort

Once you are confident your compensation plan (salary
+ commission) is competitive, the best way to drive focus, teach new behaviors, report on progress and reward for improvement is to look beyond cash and understand how behavioral economics can unlock a variety of new activities that lead to results.

Based on experience, best-in-class companies spend anywhere from 2-10% of total compensation on non-cash rewards for their sales teams. If you are driving behavior change for tasks such as entering data into a CRM system, it is near the lower end. But if you want to motivate immediate results and push reps out of their comfort zone, the payout should reflect the higher risk. Short-term stretch goals can be as high as 10% of income for that period of time.

These rules apply not only to reps who are your employees. There’s a growing trend to use a higher percentage of non-cash rewards for dealer and distributor channels to cut through the clutter, drive focus and gather vital data about who exactly is selling your product.

Growing evidence points to non-cash rewards as effective motivators. Gone are the days of passive, boring point catalogs with minimal to no chance of earning something meaningful. Today’s promotions use powerful behavioral economics tools to engage sales and dealer reps with highly-visual, quick-hit games that have vivid awards worth pursuing. And if you use non-cash awards, the minute winners are announced they’ll go social with the news and help generate even more buzz, more activity and – most importantly – more results.

Here are some of the top ways sales leaders are succeeding by using non-cash rewards.

http://www.biworldwide.com/en/white-papers/sales-channel-effectiveness/improving-sales-with-rewards

http://www.biworldwide.com/

Improving sales results right mix of with the rewards BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

When was the last time you looked at the mix of rewards for your sales team? BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Many things are stopping sales teams from achieving their top performance. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Awareness: They don’t know WHAT to focus on BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Learning: The don’t know HOW to improve BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Measurement: They aren’t sure WHERE THEY STAND BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Reinforcement: They aren’t convinced the rewards are worth the effort BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

Here are some of the top ways sales leaders are succeeding by using non-cash rewards. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

1 Setting Goals Using a . Self-Selection Structure If you do an online search for “goal-setting, you’ll get a return ” of millions of results and find thousands of books promising all kinds of ways to make your wildest dreams come true. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

2. Closing the Say-Do Gap We all like to talk big. Especially managers. But the hard part is actually DOING what you say you will do. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

3. Launching New Products The statistics say it all: 35,000 new products will be introduced this year and 70% of them will fail. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

4. Chasing the Game Cash doesn’t cut it anymore. Once you introduce cash to solve the problem it’s next to impossible to take it away. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

5. Generating Buzz It is frowned upon to talk about your paycheck, but looking at a video on your new iPad or showcasing a new designer handbag will start to increase the buzz. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

6. Getting a Jump on the New Year Take advantage of this energy and develop a promotion that drives speed. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

7 . BI WORLDWIDE.com Reinforcing Steps to the Sale Understanding the biases behind your sales team’s behavior can lead you to new approaches and unlock new levels of performance. | Australia | Canada | China | India | Latin America | United Kingdom | United States

Learn more about improving results with the right mix of awards with real world examples by downloading our free article. BI WORLDWIDE.com | Australia | Canada | China | India | Latin America | United Kingdom | United States

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 States

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