6 Strategies for Improving Incentive Program Outcomes

Do you need to improve the results of your trade but don’t know exactly what to do? A good alternative is rethinking incentive program.

The incentive program is usually an additional payment that is granted for the sales made, the so-called commission. The main goal is to improve performance through a financial counterpart. That’s the way it is satisfies both sides the question: the owner and the employee.

Ideas to improve the incentive program

You should look for opportunities to offer more than just an incentive program Improve outcomes effectively Of your company. To do this, it is worth knowing the following tips, prepared by consultant and sales specialist Erik Penna.

1. Define different percentages depending on the product line

For example: 5% for Line X, which is easier to sell, 7% for Line Y, which is harder to sell. There can also be an excellent commission for product profitability: The item with a higher net margin can pay more; the one with the lower margin pays less.

2. Consider other commission variables

There are several variables that can change the commission percentage. The region where your seller makes the sale could be one of these: If you sell in Region A, you earn 3%. If you sell in Region B, 4%.

3. Set higher percentages as you exceed the target

For example, if a seller meets the monthly sales goal of 100,000 soles, they are eligible for a prize of 500 soles. But so that the seller does not stop after exceeding this goal, introduce additional prices: If you sell 105,000, the price is no longer 500 soles but 650. If you sell 20% over the target, the price can be 800 soles and so on.

4. Make calculations easier

The commission calculation should be easy for the seller, because if there are many options and he gets confused, it will reduce his enthusiasm and he will not reach the numbers.

5. Offer customer review bonuses

You can add value when your salesperson’s performance is recognized by the customer. For example: when the company receives attention ratings and the seller gets an average of over 9 from customers, give them another 100 soles as an added bonus.

6. In addition to money, create reward forms

“The creation of bi-annual and annual non-cash campaigns is commendable,” says Penna. give away Notebooks, televisions, tablets or family outings are excellent ideas, as these actions stick in the winner’s memory longer than the sums of money.