Are you new to sales incentive programs? Alternatively, maybe you have been involved in corporate programs in the past, but now you are looking to run a program on your own. Regardless of how big or how small your program will be, there are certain elements that are critical to any sales incentive program.
Step 1: Establishing Objectives/Rules
What are you trying to achieve? Needs to be short, specific and attainable. (e.g. sell “x” number of a specific model)
Step 2: Outlining the Strategy
Who is the target audience? What is the length of the program? (e.g. Sales Managers and Sales Associates, three month program or twelve months)
Step 3: Measuring Performance
Identify specifically what will be measured. Keep it fair and obtainable. Leverage historical data. (e.g. unit sales versus same period last year)
Step 4: Establishing a Budget
For a sales incentive program, 5-10% of projected incremental sales increase should be applied to the total program investment. Incentive rewards should equal 5% of total compensation for the program period
Step 5: Allocating a Budget
80% of the total program budget should be allocated towards rewards, with the remaining 20% covering “fixed costs” (i.e. communications, admin, marketing/social media, tracking and reporting, etc.)
Step 6: Selecting the Perfect Rewards
Rewards must be personally meaningful, memorable and motivational. Chose rewards designed to inspire and engage your participants.
Step 7: Administering the Program
A small part of the budget but a huge part of any program’s success. Performance must be measured, with timely feedback provided.
Step 8: Celebrating Success
Top performers and personal/program milestones should be acknowledged and celebrated throughout the program and at program end.
Step 9: Analysing Program Success
Were objectives met or exceeded? Were participants motivated? How can this program’s success be leveraged for future programs?
At the core of any successful sales incentive program is an impactful, engaging and strategically planned communications campaign. Your message needs to be communicated clearly and frequently:
In short, your program communications need to:
The worst thing you can do is launch your program with a lot of publicity and then cross your fingers and hope for the best. Ongoing communications, at least once a month for 6-12 month programs and weekly if possible for shorter duration programs, is essential to keep your goals top-of-mind and drive results.
Posted on Friday, 17 May 2013 by Melissa Jelfs