A sales incentive and reward program is a strategy that helps the sales person to achieve the sales target of the business. This plan can either use non–cash incentive rewards, incentive funds, or even cash-based sales performance incentive funds. The strategy is commonly used to motivate the employees hence making huge sales. This is because when the employees are valued, they tend to work hard to enhance the growth and profitability of the organization. The organization needs to offer material and financial incentives to inspire the employees to reach set targets and surpass them.
There are innumerable sales incentives and rewards programs as illustrated below.
- Role-specific incentives
The sales team in every organization is made up of people with different roles and capabilities. Their performance also varies as some perform above the expectations while others perform below the set targets or goals. The representatives have different roles at every stage of the buying process. As a result, the organization needs to develop sales incentives and programs to accommodate every team member. A top-performing sales person would require a tiered-incentive system that rewards them every time they achieve a desired goal or target.
- Split incentives
The company may have the sales people working as a team in a specific region or handling a special product with a complex feature. For instance, a sales leader together with the product manager and representative may develop a new commodity with additional features. The use of spilt incentive is ideal for use as it will make it easier to motivate every stakeholder who took part in the development of the product. Split incentives are a great way to inspire the underperformers to work extra harder to ensure the entire team wins.
- Presale incentives
The current business environment is facing strong competition. There are innumerable competitors in the same environment selling similar products. Companies are offering promotional offers in an attempt to outdo one another. Customers tend to take time to compare products of various companies. The sales teams are in contact with the customers in most instances. To influence the buyers to buy your company’s product, you should offer incentives through the various stages to keep the salesperson encouraged. This in turn boosts both long-term and short-term focus.
- Omni channel incentives
Online shopping has become more dominant recently. The customers are not only networking with the salesperson but also with the Chatbots on a variety of digital networks in the buying stages. Various companies are implementing smart bots so that they can offer feedback to customers at a faster rate. However, it is impossible to replace the role of the sales team even after implementing the smart bots. The Omni channel incentives help reward the sales team for the role they play in the entire process. For instance, the company may be sending computerized emails with promotional materials to the customers. The sales team will speak to the customers who will respond to the mail. The sales representative who offer the best deals to the customers need to be recognized for their efforts in leading potential customers to buy through the virtual channels.
In conclusion, there are a wide variety of sales incentives. The above article illustrates some of the commonly used sales incentives.