evaluation units. The idea is that, if you encourage the right behaviors at critical steps in the sales process, you will benefit from more sales when those behaviors increase. Plus, it is easy to measure the change in behav- ior over time via a key KPI tied to your program objectives.


This strategy is particularly effec- tive for long-sales-cycle products or complex sales.


2. TAILOR INCENTIVES TO ROLES, SEGMENTS, OR GEOGRAPHY.


One size is not necessarily the best option for all when it comes to sales incentives. Your direct sales team may be segmented by regional manag- ers, salespeople, support personnel, marketers, etc.


Each of these personas may have


a different role in the sales process. Channel sales may have a differ- ent composition altogether – and incentives may need to be modi- fied for unique segments, allowing for varying industries, go-to-market models, and individual roles within each segment. Consider different program com- ponents for various combinations of role (or persona), segment, or geography.


3. GIVE PARTICIPANTS WHAT THEY WANT. Create compelling rewards for par- ticipants based on their interests and preferences. People value choice in all aspects of their lives – and incentives and rewards should be no different. Participants are looking for value and flexibility. For example, you could offer merchant gift cards. Or, for even more flexibility, offer universal incen- tive cards that are widely accepted. After all, how many iPads or toasters can someone earn and still be excited about them?


4. TEST YOUR PROGRAM BEFORE LAUNCHING. Many organizations launch their sales incentive programs all at once


and hope for the best. Instead of arbitrarily assigning rewards before rollout and blindly guessing what will work, run live tests. You can analyze which sales rewards resonate best in different geographic locations or with different demographics, and whether the communication used during reward delivery was effective. Doing so can help identify which rewards and delivery methods your different sales team members prefer. Plus, it helps you seize opportunities to integrate customizable, tailorable sales incentive options. You can also evaluate administrative processes. In general, testing before launch- ing will give you an opportunity to fine tune all aspects of the program before a broader rollout. The data you gather can also help create benchmarks for program expansion and help with sales forecasting and budgeting.


5. KEEP IT SIMPLE BY STREAM- LINING ADMINISTRATION. Cumbersome administrative require- ments – on behalf of participants – that suppress participation can kill an otherwise great program before it gets off the ground.


The importance of administrative ease is more pronounced for channel incentive programs. If your competi- tor’s program is easier to use, your program may get ignored in favor of theirs. This is often cited by poten- tial participants as a reason for not engaging. You should minimize paperwork, shorten the approval process, and make it easy to deliver rewards that recipients can easily redeem.


6. DRIVE ENGAGEMENT WITH A GOOD COMMUNICATIONS STRATEGY. Unlike in Field of Dreams, the idea of “Build it and they will come” may not result in optimal program engagement. Make sure you have a compre- hensive communications strategy to generate awareness and drive partici- pation; then, be sure to drive ongo-


‘‘


Life shrinks or expands in proportion to one’s courage. ANAÏS NIN


ing engagement through continual outreach such as monthly newsletters, program reminders, and more. What’s old can now be new again with the resurgence of physical welcome kits distributed to participants in addition to the more commonplace emails and e-newsletters. These physical materi- als can be viewed as more engaging and unique.


7. SET KPIS FOR GOALS AND REPORTING. It’s not enough to have a general objective to “increase sales.” Key performance indicators (KPIs) are a part of the sales cycle many organi- zations overlook.


KPIs should incorporate leading indicators as well as performance indicators aligned with your pro- gram objectives. Each should be benchmarked against the current status quo so you can measure im- provements over time. Clearly, you will also need a source of data to evaluate performance, so make sure there are metrics and reporting tools available for all KPIs selected.


8. CONTINUALLY MONITOR PROGRAM PERFORMANCE. Review your program regularly against the established KPIs. This helps measure objective feedback to better understand the perceived strengths and weaknesses of the program design and administra- tion. You want to make sure you’re dispersing the right value and right type of rewards and that recipient preferences aren’t changing. The data you gather can also help create benchmarks for program expansion


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