Six Ways to Drive Sales Behaviors with Incentives
Do you believe in incentives? Well, who doesn’t? As a sales performance and effectiveness company, we embrace the philosophy that incentives drive everything—hopes, dreams, innovation, competition, progress… In short, everything that moves the ball forward. Driving sales behaviors is instrumental to your company’s topline growth. It’s important to dangle just enough carrot to stir up frenzied sales activity to strike the perfect balance between stimulating performance and ensuring you don’t break the bank. Here are the six best ways you can start driving behaviors now:
- Make sales reps trust you – Don’t just email your sales reps their compensation statements. That could lead to shadow accounting. Instead, give them full transparency into how much money they made, can make, and will make. Show them how they are tracking to their quota. Showcase their performance on key performance parameters that best align to your business strategy, be it cloud versus on-premise sales, product versus services, new logo versus renewal business, or customer satisfaction rates. And give reps all of this information on their mobile devices, so they spend more time in the field, selling to your prospects.
Give your sales reps payout information on their mobile devices
- Show them the money – Let sales reps forecast their incomes at every stage of the sales cycle, whether it is at the opportunity level within your CRM system or later when they are building a quote for prospects in your CPQ Incentives embedded in the sales cycle can catalyze sales activities, drive cross-sell and up-sell opportunities, and reduce discounting. To sum it up, embedded incentives can help you close bigger deals, faster.
Let your sales reps estimate their commissions within CRM
- Pay incentives often – How long do you take to calculate and pay out your commissions? We see several companies that take months to calculate their commissions on spreadsheets. With such long processing times, sales reps often get frustrated and distracted from selling and become most concerned with ensuring they get paid right for every deal they close. In the age of instant gratification, you should consider paying out commissions on a monthly, weekly, or—believe it not—daily basis. Our customers who pay their sales reps daily say they have a competitive advantage to attract and retain the best sales talent.
- Use SPIFS wisely – SPIFs, or Sales Performance Incentive Funds, are often a comp admin’s go-to solution to drive quick results. Frequently used to push a product launch or move inventory, they can also be used to drive new logo sales, attract registrations for your user conference, or build a library of customer case studies—if done correctly. Goal clarity, sales enablement, and timing are all keys to making a SPIF successful. Communicate the goal of your SPIF clearly and early in the quarter to your sales force, enable them with the right collateral, and give them enough time to be successful.
- Incentivize cross-functional teams – Say your goal is to renew some high-risk customers. It will take a cross-functional team: sales reps, sales engineers, product experts, customer support, and customer success managers. Incentivize the entire team that touches the customer and not just the sales rep who owns the customer relationship. That way, everybody has a unified goal. There will be little pushback between different teams, and you will maximize customer renewals.
- Go beyond the money – In addition to money, recognition and competition are key behavioral drivers; tap into both through gamification. Leaderboards, contests, and badges have been shown to boost morale and sales activities. And because sales reps are inherently competitive, they will all want to be on top of the leaderboard.
Every sales rep wants to be on top of the leaderboard
Do you have other ideas? Write back. I would love to hear from you. Want to know more about how you can drive sales behaviors at your organization? Check out CallidusCloud Commissions.