How To Improve The Performance of Your Entire Salesforce
1
THEN OFFER REWARDS THAT SUPPORT LEVELS OF ACHIEVEMENT & ENOUGH CHOICE SO THE INDIVIDUAL SETS THEIR OWN PREFERENCES The power of non-cash incentives Improving sales performance, from top to bottom But to realise the potential of a program, the audience must be segmented and provided with attainable goals and rewards. The effect of an incentive program in all work settings is a 22 % gain in performance. PERFORMANCE SALES 1/3 of all sales are attributable to the efforts put forth to compete for and earn rewards and incentives. + 22 % 33 % 20 % 20 % 60 % CATER TO THE DIFFERENT LEVELS OF PERFORMANCE Motivated by uncapped incentives, ‘highest achiever’ awards and frequent recognition • Need to be challenged, self-directed and provided tools to manage their own progress • Less than 30 % of growth comes from this group because they are already close to capacity • Require regular reward and recognition to maintain and retain • Inspired by access to business leaders Motivated by open ended, tiered targets and rewards that vary in nature and value • Most programs ignore this group, but they can have the biggest impact if given the proper incentives • 20 % of middle performers are previous top performers who have fallen down the ranks Driven by quarterly incentives and social pressure to improve • Either working their way up or on their way out • Need more guidance, encouragement and coaching to improve performance • Driven by small, achievable milestone goals and frequent recognition +5 % +70 % THE 80/20 ‘RULE OF THUMB’ IS A MYTH. The average top 20 % of sales people only contribute about 1/3 of sales revenue. FEWER THAN 50 % OF SALES PEOPLE ACTUALLY HIT THEIR TARGETS. Programs structured to reward only the end goal miss opportunities to improve performance incrementally. TOP PERFORMERS MIDDLE PERFORMERS LOW PERFORMERS = A 5 % performance boost from the middle can yield over 70 % more revenue than through a 5 % performance shift among top performers Contest-based Although popular, closed-ended, ‘winner takes all’ programs are least effective in delivering results. Behavioural Rewards for ‘doing more of something’ provide a 15 % increase in performance. Long vs short term 1 year+ programs produce an average 44 % increase in performance and programs running 6 months+ show a 30 % increase. Tier-based Open ended, tiered incentives encourage movement up the curve and are most effective for improving middle performers. Quota-based incentives work best Rewards based on meeting or exceeding objectives generate the most positive results. When asked to persevere towards a goal, people increase their performance by 27 % . Team vs individual Team-directed incentives increase performance by 48 % compared to individually-directed incentives. DEFINE GOALS THAT PROVIDE EVERYONE WITH THE CHANCE AT SUCCESS. TANGIBLE REWARDS More than twice as effective as cash RECOGNITION The top non-monetary compensation method amongst sales people BONUSES Important part of the reward mix, but not to be relied on COACHING AND DEVELOPMENT Has been shown to improve performance by 88 % TOP PERFORMER TRAVEL INCENTIVES Increase sales by an average of 15 % Sources: Maritz, Motivating the Middle 2006, Shifting the Performance Curve by the Sales Leadership Council, Research by Delong, Incentive Travel Facts survey The Psychology of Incentives and Motivation, LoyaltyWorks® Online, 201, What motivates sales people? Dealmaker 365 Blog, Donal Daly, Incentives, Motivation & Workplace Performance, Published by: Incentive Research Foundation Talk to us accumulate.com.au Everyone wants something that’s beyond their reach, budget or scope of control, so we are programmed to invest ourselves to do things differently to achieve a desired result.
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21-Oct-2014 -
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It’s easy to fall into the trap of focusing all your attention on your top sales representatives for growth, but most of these employees are already at capacity. The largest portion of your sales team sit somewhere between the best and worst performers, and research continually tells us that this is the group ‘most likely to move the needle’ when given the right incentives. Encouraging your middle and low performing employees to start giving even a little more could transform your organisation. That’s why when designing and managing a sales incentive program, it’s essential to identify what motivates, retains or improves each unique group – considering everyone from the top to the bottom, and particularly those who fall in-between.
Transcript of How To Improve The Performance of Your Entire Salesforce
THEN OFFER REWARDS THAT SUPPORT LEVELS OF ACHIEVEMENT &ENOUGH CHOICE SO THE INDIVIDUAL SETS THEIR OWN PREFERENCES
The power of non-cash incentivesImproving sales performance, from top to bottom
But to realise the potential of a program, the audience must be segmented and provided with attainable goals and rewards.
The effect of an incentive program in all work settings is a 22% gain
in performance.
PERFORMANCE SALES
1/3 of all sales are attributable to the efforts put forth to compete for
and earn rewards and incentives.
+22% 33%
20%
20%
60%
CATER TO THE DIFFERENT LEVELS OF PERFORMANCE
Motivated by uncapped incentives, ‘highest achiever’ awards and frequent recognition• Need to be challenged, self-directed and provided tools to manage their own progress• Less than 30% of growth comes from this group because they are already close to capacity• Require regular reward and recognition to maintain and retain• Inspired by access to business leaders
Motivated by open ended, tiered targets and rewards that vary in nature and value• Most programs ignore this group, but they can have the biggest impact if given
the proper incentives • 20% of middle performers are previous top performers who have fallen down the ranks
Driven by quarterly incentives and social pressure to improve • Either working their way up or on their way out• Need more guidance, encouragement and coaching to improve performance• Driven by small, achievable milestone goals and frequent recognition
+5%
+70%
THE 80/20‘RULE OF THUMB’
IS A MYTH.The average top 20% of sales people
only contribute about 1/3 of sales revenue.
FEWER THAN 50% OFSALES PEOPLE ACTUALLY
HIT THEIR TARGETS.Programs structured to reward only the end goal missopportunities to improve performance incrementally.
TOP PERFORMERS
MIDDLE PERFORMERS
LOW PERFORMERS
=
A 5% performance boost from the middle can yield over 70% more revenue than through a 5% performance shift among top performers
Contest-basedAlthough popular, closed-ended, ‘winner takes all’ programs are least effective in delivering results.
BehaviouralRewards for ‘doing
more of something’ provide a 15% increase
in performance.
Long vs short term1 year+ programs produce an average 44% increase
in performance and programs running 6 months+ show
a 30% increase.
Tier-basedOpen ended, tiered
incentives encourage movement up the curve
and are most effective for improving middle
performers.
Quota-based incentives work bestRewards based on meeting or exceeding objectives generate the most positive results. When asked to persevere towards a goal, people increase their performance by 27%.
Team vs individualTeam-directed incentives increase performance
by 48% compared to individually-directed
incentives.
DEFINE GOALS THAT PROVIDE EVERYONE WITH THE CHANCE AT SUCCESS.
TANGIBLE REWARDSMore than twice as effective as cash
RECOGNITIONThe top non-monetary compensation method amongst sales people
BONUSESImportant part of the reward mix, but not to be relied on
COACHING AND DEVELOPMENTHas been shown to improve performance by 88%
TOP PERFORMER TRAVEL INCENTIVES Increase sales by an average of 15%
Sources: Maritz, Motivating the Middle 2006, Shifting the Performance Curve by the Sales Leadership Council, Research by Delong, Incentive Travel Facts survey The Psychology of Incentives and Motivation, LoyaltyWorks® Online, 201, What motivates sales people? Dealmaker 365 Blog, Donal Daly, Incentives, Motivation & Workplace Performance, Published by: Incentive Research Foundation
Talk to us accumulate.com.au
Everyone wants something that’s beyond their reach, budget or scope of control, so we are programmed to invest ourselves to do things differently to achieve a desired result.
