What is an Incentive Scheme and is it Right for Your Sales Team?
Why are incentive schemes important? For most businesses, the key to success is sales. Therefore, keeping the sales team motivated is of utmost importance. An incentive scheme that rewards the sales team for their efforts is a great way to do that. If you want to encourage extra sales then you need to link incentives to the sales performance. You can keep your sales team motivated and transform your sales operation by offering incentive schemes and employee rewards.
Incentive schemes will help you to keep your sales team happy and improve your business considerably. Often, choosing the right incentive schemes to motivate your sales team can be a tricky affair. The reason for this is simple—you need to design an incentive program that is exciting or motivating enough for your sales team while working within a set budget. Often, your budget won’t allow you to offer an incentive scheme that you have in mind. However, you do not necessarily need to spend a lot to reward your sales team for their efforts. There are many incentive schemes that are quite effective and won’t cost you much.
There are many benefits of creating effective incentive schemes for your sales team. They include:
- Increasing retention and staff loyalty
- Building motivation and morale
- Improving customer satisfaction
- Increasing productivity and sales performance
- Encouraging staff to focus on your objectives
In order to realize commercial success most businesses are heavily dependent upon their sales team. This is the reason keeping the sales team motivated is extremely important. As pointed out earlier, incentive schemes are a great way to motivate your sales team. However, it is important for you to choose and design an incentive scheme that is right for your sales team. There are three steps involved in choosing and designing incentive schemes that are right for your sales team. Following are the three steps involved in the process.
1. Understand your sales function
Understanding your sales function is the first step in the process. This means understanding your sales processes, the structure of your sales staff and your key sales objectives.
2. Set Goals
Once you’ve understood your sales function you can set goals for your sales team that stretch their abilities to the fullest and brings you closer to achieving your ultimate sales objectives.
3. Set Rewards
Your sales team will work to their peak potential only if you reward them for their efforts. Therefore, it is important for you to offer rewards for every sales goal that you’ve set. The rewards could be vouchers, merchandise, gift cards, travel incentives or appreciation certificates. The rewards will keep the sales team motivated and committed towards achieving the sales goals that you’ve set.
By following the aforementioned three-step process, you’ll be able to design and choose incentive schemes that are right for your sales team and business. Apart from this process, you can also use commission software to drive sales. You can find out more about this software by watching the Commissions product tour.
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Top 10 Questions to Ask Your ICM Vendor
- How do I settle comp disputes?
- How many people can be credited for a single sale?
- Can your application keep up with my fast growing needs?
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