Have you taken the time to give them a baseline of information on product positioning, benefits, and features? If not, you should definitely include this in your incentive strategy. You may not have thought about it this way, but, instead of charging for train- ing, you might pay salespeople to learn the company’s products.
DRIVE OUT OBSTACLES Put yourself in the salesperson’s place. Removing obstacles from the sales incentive process will only benefit and motivate the salespeople. Drive out as many as you can. Another interesting point to con- sider – and an additional barrier to success – is overpromising. The cliché of “overpromise and underdeliver” is true. That’s definitely a high-integrity posture. But there is something else to consider – inertia. Conservation of Momentum is a physical law, but it’s also a behavioral law. People don’t like to change what they do – or the way they do it. In the world of incen- tives, competitive products have their own merits, product life cycles come into play, and loyalty to a given brand may also be a factor.
The question then becomes: How can you change the inertia? And how, if at all, does that relate to overprom- ising? Consider the impact of an initial program announcement. First impres- sions are key, and launching a new program needs some real sizzle to get some attention in the first place. So, due consideration to your market- ing communications strategy remains very important. Social media seems to have supplanted traditional marcom to a large degree, so have a clear and aggressive strategy to leverage it.
THE CASE FOR SPIFFS The manufacturer must make a profit; the dealer must make a profit; the salesperson would like a reason- able commission; and certainly the customer would like to be confident they will be sold an appropriate solution. All these things can hap-
pen in a spiff world. When used and managed effectively, spiffs are still a powerful tool to motivate, excite, and drive sales – as well as create enhanced overall business results, including profitability.
The truth is, salespeople often take the path of least resistance and sell only what the customer asks for. It would greatly benefit channel dealers to consider creative ways to reward building margin into sales, improving attach rates, and increas- ing staff product knowledge. Speak- ing of attach rates…this is one of the most underserved areas of the normal sales process. Salespeople generally sell the product the end user asks for, but rarely take the time to mention five, 10, or even 15 ancillary products that are natural go-togethers. If they sold those add-ons, the total sale AND the total margin would go up, AND the end user would find enhanced productiv- ity and improved utility. Additionally (and equally impor- tant), offering salespeople significant- ly more, proportionately, at the front end of a program will create initial excitement and drive participation. For example, offering a 50 percent higher spiff in the beginning will get needed attention. Also, providing a spiff for everything may not be neces- sary. Deploying meaningful spiffs on variable products keeps their atten- tion and rewards them for that effort. Let’s also consider “time to pay- ment” or “time to receive rewards” as part of this equation. Compared
SELLING TIP Keep Selling
When you get a prospect to sign on the dotted line and close the deal, it’s only natural that you feel it’s time for a celebration. That may mean knock- ing off for the rest of the day or taking a long lunch. But think about it. At that moment in time you’re confident, feel great about yourself, and are at the top of your game. It’s the perfect time to go see that difficult prospect – the one you’ve been trying to crack forever. The reality is…the best time to make a sale is after you’ve just made one. – WILLIAM F. KENDY
SELLING POWER JUNE 2018 | 25 © 2018 SELLING POWER. CALL 1-800-752-7355 FOR REPRINT PERMISSION.
to the impact of a point program to a cash program, there is a dramatic difference in the impact on a person’s psyche. A point program is, under most circumstances, a long-term proposition. Accruing enough points to receive a meaningful award can take months – if not an entire year. A cash payment made via a reloadable prepaid card, on the other hand, can be processed in a few days to a week. So, if you want salespeople to change their patterns quickly and meaning- fully, make the payouts quick, easy, and exciting.
Understanding the relevance of
spiffs and leveraging them as sales assets is the first step; working with tools that better deliver and man- age effective spiff programs is the next step. There is plenty of room for further development of spiff programs and management solutions in the marketplace. If you’re running a sales incentive
program, make sure you’re consider- ing the following critical factors that may determine your incentive pro- gram’s success or failure. The latter shouldn’t be an option: 1. Don’t put your toe in the water; jump in
2. Give them a clear reason to learn and sell your products
3. Don’t offer salespeople crumbs; take them to the $100 table
George Kriza is founder and CEO of MTC Performance, which focuses on Web- based technologies for the success of incentive programs.
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