Refocus on Fundamentals
The tumultuous changes brought on by both the digital explosion and the COVID-era lockdowns have added enormous complexities to the traditional sales process. As we adapt to all these changes, it’s critical that we don’t lose sight of the fundamental principles of a sales incentive plan. We need to refocus on these basic principles to help our sales organizations address today’s most pressing trends in an effective and efficient way.
Definition of a Sales Incentive Plan
Mailshake, a sales communications company, defines a sales incentive program as a reward system that encourages and motivates sales representatives to reach their targets. Incentives are different from compensation plans in that they’re rewards or bonuses given after certain milestones have been met. This can include gift cards, non-monetary gifts, recognition honors, catalog redemption programs, and monetary awards.
Types of Sales Incentive Programs
There’s no one-size-fits-all solution to sales incentives. Every team member is different and may require different incentives to remain motivated.
Role-Specific Sales Incentives - Role-specific sales are geared toward salespeople in specific roles. This can include sales managers, account executives, or even a customer success representative.
Territory-Based Sales Incentives - Territory-based sales incentives are designed to reward employees who excel in a particular geographical area.
Performance-Based Sales Incentives - Performance-based sales incentives reward employees based on their individual performance within the sales team rather than comparing them to other members of the team.
Omnichannel Sales Incentives - Omnichannel sales incentives are designed to encourage sales reps to use more than one sales channel.
Split Sales Incentives - Split sales incentives provide additional motivation for reps to focus on cross-department collaboration.
Presales Incentives - Presales incentives provide an additional reward for sales reps who successfully convert prospects into customers.
Goal-Based Sales Incentives - Goal-based sales incentives are based on specific goals that need to be achieved in a certain period of time. These goals can range from achieving a given number of sales, closing deals with particular clients, aiding in customer retention efforts, or any other goal deemed important for the success of the organization.
Considerations When Developing a Sales Incentive Program
When creating an effective sales incentive program, it’s important to consider the individual characteristics of your team members. Factors such as age, experience level, and lifestyle should be taken into account when deciding which type of incentives will motivate them the most. You may even consider a survey for your reps about which types of rewards they prefer or find most meaningful.
Importance of Finding the Right Partner
You’re going to need a sales incentive technology partner that can help you adhere to the basic principles of your sales incentive program while continuously adapting to the ever-challenging and changing sales environment. At Incentra, our technology platform is built on flexibility and adaptability while maintaining bedrock best practices. Give us a call to learn more.
Check out these related blog posts: