Sales incentive programmes are designed to increase sales and improve market share. In an increasingly competitive environment, maintaining momentum keeps the sales force engaged and motivated to achieve their targets.
To be successful, an incentive programme needs to be frequently communicated to the participants. “If they aren’t spoken to regularly through the various media related to their positions, the programme will fall flat,” says Geoff Saner, MD, Creative Incentives “
They need to know the what, where, how, why and when about it. WIIFM applies – ‘what’s in it for me?’ The more they are told what’s in it for them, the more they understand what they have to do — ‘to earn X, achieve Y and be recognised as a top achiever’.”
Momentum ensures top of mind and consistency in communicating, executing and delivery of results. In every programme there is the excitement and hype created at the launch. Inevitably, this dies down as participants pay less attention to the deliverables and get on with the mundane daily tasks.
“By keeping the momentum – and thus the engagement – high, you can prevent peaks and troughs and expect sustainability and consistency in results,” say, Gustav Lammerding, marketing director, Uwin Iwin.
Related: Sales Incentives: Based on Profit or Revenue?
Where incentive programmes often fall short
Any incentive programme should be launched with flair and excitement, with dedication and visible presence from head office. When executives are seen to be backing the programme, that goes a long way in convincing staff that the company is serious about the ideas and promises, says Saner.
“Then it’s back to the pre-planned daily, weekly or monthly communication strategy. The content of what is communicated is important too. It must be relevant to the programme aims and objectives, and also to the individual, and the incentive theme itself.”
The frequency, relevance and methods of delivery are vital in planning and executing a communications strategy, adds Lammerding. “Often we see too much focus on reward, and too little focus on the goals and the journey to achieving
those goals.”
Given the importance of ongoing communication, one shortcoming in many programmes is that companies and managers continue to run them manually.
“The result is inconsistent or delayed feedback to the participants, which leads to reduction of overall programme effectiveness,” says Tebogo Taunyane, deputy CEO, WOW Enterprise Performance Solutions.
“The use of technology builds discipline, brings transparency and improves communication.”
Best advice on maintaining day-to-day momentum
Millennials, engineers and factory workers all respond differently to different types of communication. Determine what the participant demographics are and create social media platforms, such as closed Facebook groups.
Apps are a simple way to engage with all participants. They enable real-time reporting too, giving management instant views on how the programme is progressing, where the issues are, which department is falling behind, and which person is shooting out the lights. For all participants, virtual slaps on the back are a great form of recognition.
Sales incentive programmes are essentially about behaviour modification. To effectively influence the behaviours of participants, communication must be regular, the communication objectives must be clear from the start, messaging must be specific and customised for the individual, and delivered with pre-determined frequency.
Engaging the whole team – from laggards to stars
Involvement and engagement are crucial to an incentive programme’s success. There are drivers that can be put in place to ensure that each communication is seen, read and acted on.
“It’s essential that you focus on the top 20% and the vital 70% of the team,” says Lammerding. “The laggards or bottom 10% will absorb the positive energy and turn it into negative energy anyway, so don’t waste too much time on them.”
Top achievers are naturally A-type personalities, he adds. They are self-motivators but seek recognition, and their name written in big bold letters. As a rule, travel and experiences ‘money can’t buy’ motivate the top achievers best.
“When it comes to the vital 70%, it’s important to engage these team members by motivating and encouraging them, and recognising consistency, improvement and loyalty,” says Lammerding.
“Set achievable and clearly defined goals. Ensure that the rules are easy to understand and are not cumbersome. These team members thrive on the daily routine and will not veer off what they know and do best.”
Taunyane says the importance of regular feedback cannot be over-emphasised. He advises the following:
- The programme must incorporate the achievement of short-term goals, and can be linked to marketing priorities over specific time periods.
- Rewards must be segmented to incorporate an element of aspiration for laggards.
- Star performers must be continuously stretched to beat or exceed their previous achievement to create a competitive culture among sales staff that drives incremental sales performance.
Related: Creating Inventive Sales Incentives
The value of outsourcing incentive programmes
Performance improvement agencies can add much value to a company’s incentive programme because of their expertise in programme design, and the tools they have to implement and monitor programmes.
Clients obviously get the benefit of full-time resources to run all aspects of the administration of their programme. Plus, a consultancy will design and apply the technology for effective database management and informed programme reviews, ensuring increased participation and improved engagement of staff.
Because an incentives consultant is paid to communicate and also collate, analyse, plot, report back on and enhance the data gathered at each stage of the programme, it makes sense that this would increase the chances of achieving the overall objectives of the programme.
Saner notes that corporates simply don’t have the time or the skills to keep their incentive programmes real and relevant.
“Companies are spending anything from R1 million to R30 million on trying to create a desired behaviour. In the current economy, bottom-line profit speaks more than deciding not to outsource an incentive programme due to perceived cost savings.”
Lammerding agrees. Companies simply cannot afford to split their focus between their core business and the running of an incentive programme. “In addition, we apply a scientific approach to get the best out of incentive programmes. Ask yourself, would you trust your pharmacist to give you a specialist diagnosis?”
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