How to Create a Sales Incentive Program
Imagine your company’s sales have dropped or become stagnant over the past year. Or imagine sales are doing well, but you want to push them to a higher plateau. Creating a sales incentive program could be the best solution for both situations.
But first things first: What comprises an effective a sales incentive program? How should the program be executed? This is what we look at below, exploring four building blocks that are essential for creating almost any type of sales incentive program.
- Reward Budget
Before you choose the incentive for sales performance, determine how much you can comfortably spend. The prospect of revenue growth is a major reason for incentivizing sales performance. But you don’t want to break even after delivering the incentive. You want a sizeable chunk of income leftover that goes straight to the bottom line and grows your company’s wealth.
- Reward Schedule
The schedule on which a reward is given is determined mostly by the type of reward. For example, say the incentive is additional commission for closing a sale within two weeks. It would be a short-term incentive structure that should ideally pay out bimonthly.
On the other hand, if you use a large reward that involves more than adding another digit to a paycheck, you’ll probably deliver the reward after a few months have passed. For instance, if the incentive is a travel trip, you’ll probably offer it once or twice a year for two reasons: cost, and avoiding spending too many would-be work hours on pleasure activities.
- Reward Requirements
A sales incentive program requires salespeople to reach a revenue plateau before the incentive is triggered. Products and services are sold at different costs, and it’s important to consider this fact before choosing the reward. For example, selling a new B2B software solution to a single client would probably be more lucrative than closing the deal on a new type of office blinds with the same client.
Additional reward requirements sales incentive programs use include: feedback from new customers that is placed in a performance scoring program, revenue generated from selling in region-specific sales zones, and the time it takes to transition a lead to a customer.
- Type of Reward
Rewards for a sales incentive program entail various types of attractive offers, from cash bonuses, to new vehicles, to company stock. What you offer is up to you, but keep in mind that you’ll probably be rewarding a high earner who may already enjoy these things.
One thing the person doesn’t enjoy yet is a unique travel trip — with heavy emphasis on uniqueness — to a world class destination. Using unique travels as a reward also makes sense in another respect: Practically everyone loves to travel to great destinations, which means everyone should be highly motivated to qualify for the reward.
Need a Sales Incentive Reward?
If so, Incentive Travel Solutions can help you plan an unforgettable trip that rewards your top performers and brings them closer together through shared experiences. The trips we plan aren’t like the average vacation. The destination and activities are truly amazing, and a travel staff goes with you to ensure the itinerary goes precisely as planned.
To start planning an incentive travel trip, call us today at (704) 540-1482, or use our contact form. We look forward to helping you plan an amazing trip that motivates your team!