How to incentivize my sales team to drive results
An effective Sales Incentive program not only motivates the Team to perform well but also guides them to achieve sustainable business goals
- Improving Sales
- Increasing more Customer acquisitions
- Better Business Skew
Designing the program around Business metrics & having a clear, focused & transparent execution is the key to success
Anil Joseph
Are you able to plan your Production/Working Capital on the basis of your Sales Delivery? Do you worry that sales may not be able to sell as much as you are producing. An Incentive Plan is a handy tool to ensure sales numbers reach Business goals.
What is an Excellent Sales Incentive Programme?
Sales Incentive are opportunities for Sales Team to earn extra income and a source of motivation for achieving certain stretch Sales Deliverables
Sales Incentive Programme should be simple in
• Communicating with the Sales Team
• Easy Understanding across levels
• Tracking the Sales Performance Metrics & Hygiene
• Execution of the Program in terms of Disbursements
Types of intervention through Sales Incentive Programme
• Delivery of Organic Business Performance
• Delivery of Focus Product Performance
• Delivery of New Product Performance
Sales Incentive Program for Organic Business Performance
Organic Business Performance is function of Sales & Reach
Focus on 2 Key Metrics with recommended weightages
• Sales in INR – 75 %
• No of Customers Billed – 25 %
Type of Incentive – Monetary Incentive part of variable pay
Delivery of Focus Product Performance/New Product
Performance is a function of Sales & No: of Customers Billed
Focus on 2 Key Metrics with recommended weightages
• Sales in INR – 50 %
• No: of Customers Billed – 50 %
Preferred mode of Incentive – Redeemable Vouchers
Personalized such Gifts as per the Sales Person’s need.
Both the above options improve the morale & motivation
Sales Incentive Program is all about Execution; Execution; Execution
- Communication & Engagement of the Sales Incentive Program by entire Sales System
- Create a Sales Incentive Tracker
- Weekly Review across levels
- Weekly Recognition by Leadership Team
- Ensure availability of Key Products for enabling the Business Deliverables
- Announcing the Sales Incentive Outcomes in Transparent Manner
- Timely Disbursal of Incentive Benefits is Key for Success of Future Programs
Review the efficacy of the Incentive Program on the basis of
1.Business goals vis a vis Delivery
2.Seek inputs from Sales Team
3.If need be, only Improvise
4.Timely Disbursal & Being Fair is Key
5.Keep the consistency of Execution of the Program
Great! So what do I do next?
Ingredients for designing an effective Sales Incentive Program…
Keep it SIMPLE
2.EXCITE & ENLIST the Sales Team for the program in Week 1
3.TRACK & ENGAGE continuously with the Sales Team
4.PLAN product availability proactively
5.SHARE Sales Incentive Outcomes before next program
6.DISBURSE within next Salary Cycle
7.Be TRANSPARENT,FAIR & EMPHATHETIC to address any Market Issues
About Author
Anil Joseph
Anil has over 2 decades of Distribution, Sales & Business Leadership experience.
He has expertise in Distribution, Channel Management, Sales & Marketing. Sales operations, Marketing Program Management, Channel Sustainability, Service Operations for E-Commerce, Sales Process Improvements, and sales training. Experience across sectors namely FMCG, Consumer Durables, Batteries, Lubricants, IT Accessories & E- Com Sector
He founded Philex Marketing an FMCG Distribution operation which is into Distribution of Nestle Products in Chennai.