The Incentive Dilemma
Motivating your sales force and recognizing excellence.
By Paul Shearstone
Dangling the proverbial carrot is an ancient art that is believed to be at the heart of human behaviour, psychology, motivation – and business. Incentive programs are often part of sales initiatives used by manufacturers and distributors to add motivational value to their sales team. The reason this technique has stood the test of time is because, for the most part, it works! At times, however, elements of the technique are executed improperly and sales incentive programs underperform or fail.
The monetary values of incentives are often not the critical factor in motivating sales people to succeed. Corporations use incentive programs to drive behaviour. After all, what gets rewarded gets done. The problem is that not all salespeople are motivated the same way. Consequently, not all incentive programs work.
The 80-20 Rule
Twenty percent of salespeople make 80% of sales and profits. Too often, sales incentives – perhaps in an effort to be fair – are geared to the entire sales force. “One size fits all” seldom fits everyone. In reality, the top 20% of salespeople are already motivated. But, a strategy that lights a fire under the next 20% essentially doubles sales in a more cost efficient way.
The KISS Theory
Good salespeople look to simplicity to make things happen. Sometimes incentive programs fail because of complexities in recording or reporting systems or in how rewards are won. If a salesperson has to figure it all out… “to get this, I first have to sell this, plus these and not these and they must include these…” you’re creating a recipe for confusion. In the end, the incentive program becomes a disincentive.
Businesses must keep the program sweet and simple… and attainable. There should be no ambiguity; no confusion.
Education
Incentive programs don’t sell themselves. Too often, expensive motivational programs are overlooked because salespeople either don’t understand their value and/or are unsure how to sell them. Many times, good programs are written off as having missed the target, when in reality, they just weren’t rolled out and managed properly.
Competition
Everyone’s heard the expression, “Timing is Everything!” This is particularly important advice for the incentive program planner.
Any successful salesperson will tell you, “Most sales are made as a result of due diligence on the front end.” Simply put, the better the preparation, the more likely the sale. The same can be said for incentive initiatives. Real incentive programs, like new movie releases, are something to be anticipated. The right amount of promotion ensures greater acceptance and interest.
Reward
Any reward-value can become an anticlimactic activity if the time span between winning and getting, is too long. Successful incentive programs reward immediately! As a rule, the faster the reward is delivered, the greater the enthusiasm for the program.
Salespeople tend to react to excitement or challenge quickly - and then move on. One way to ensure program success is simply to… “Get them their stuff QUICKLY!”
Recognition
At the risk of making salespeople appear shallow or monolithic (they are not), recognition amongst their peers is still a quintessential motivator.
There is no such thing as TOO much recognition! So, there should be no shortage of achievement recognitions that find their way – in a timely manner – into the public’s eye. Psychological studies have shown that the pursuit of recognition can make the difference in targeting that critical second 20% of the sales force.
Another fact that is frequently overlooked is that recognition, whether part of an incentive or not, is the least expensive means of motivation. In many cases, it’s free! Often, shaking the hand of the president in front of the company is all it takes.
The Bottom Line: Manufacturers and distributors must take greater care when designing motivational incentive programs. Take a page out of the “Sales 101” book that says, “Find out what they want, then, give it to them!” But make sure to keep it simple, keep it clear, promote it properly, reward immediately, don’t try to target everybody, and, recognize… RECOGNIZE!
Paul Shearstone is an International keynote speaker and author. He specializes in Motivation, Selling and Corporate Resilience Training. For information call: 416.728.5556 or visit www.paulshearstone.com
2600 John Street, Unit 207, Markham, ON L3R 3W3 T: 905.475.5222 F: 905.475.6369
