3 Types of Sales Incentives to Motivate PerformanceBusiness
I have always been in the sales world making majority of my earnings on commissions and incentives. I don’t know any other way. So, naturally it comes easy to me to provide incentives for my team within my Planet Beach Spray & Spa. For someone who’s unfamiliar with this compensation concept though, it may not seem very simple. Choosing the right sales incentives to motivate a team can be challenging. On the one hand, they need to be exciting enough to motivate employees to change their behavior, or at least point it in a certain direction. On the other hand, they also need to fit within an organization’s budget and not cost so much that they cancel out the benefit of holding a contest in the first place. Incentives can come in a number of different flavors, all of which can be effective.
1. Job Related Incentives
This should be the least expensive form of incentive, since it can consist of items like additional vacation time which have no out-of-pocket cost. There is still a “cost” to having people out of the office, but this type of reward can go a long way in terms of employee satisfaction. Other choices in this category include tangible sales incentives like a new cell phone, iPad or upgraded laptop. The item should be something exciting enough to get a person motivated but at the same time also have the potential to positively impact the person’s productivity. This type of incentive can be a double-win. The employee wins by getting a neat toy that helps them to work more productively to drive more results. The company wins because the prize not only motivates the employee to work harder to earn it but also because it will ultimately make them more effective, generating increased sales.
2. Tangible Incentives
Tangible sales incentives can be extremely effective motivators. The secret is to choose a prize that the members of the team want and likely wouldn’t buy on their own. To understand what prize your staff may desire, consider the profiles of your employees. Finding a sales incentive that the members of your team generally do not have is important. For example, giving away a 42-inch flat screen television today is not as likely to excite people, since they probably already have one. Spending the same money on a high-end watch, pair of heels, bag, or other aspirational item could very well be the ticket.
3. Experiential Incentives
Experiences impact happiness more than purchases. Who wouldn’t be excited about a few days in Vegas or a week in a tropical paradise? There’s a reason that travel and experiences are such popular sales incentives: They work. And there’s a way you can squeeze even more performance out of an experiential incentive. Instead of sending one employee on a cruise for a week, create a sales contest with a team experience — such as a team dinner, outing to a fun event, or even better … send them all on a cruise! Not only do these types of incentives reward high performers, but they also help them to bond with each other, increasing the likelihood that they will stick with you for the long run.
At Planet Beach & HOTWORX we foster an environment of increased productivity through incentive-based goals. This work hard, play hard mantra has been adopted by the franchisees of this multi-brand organization. There are trips organized for the franchisees and their top performers each year. They are encouraged to opt in by setting goals for their team that are both aggressive and attainable. During our last Convention, we promoted a “Get on the Ship” incentive program where participants were invited to opt in, determine their goals and then set sail on the Carnival Sensation! This ship will set sail out of Miami, Florida on Saturday, May 25th and will return on Thursday, May 30th. This 5-day cruise will visit the ports of Nassau in the Bahamas, Half Moon Cay & Grand Turk. It is almost time for our trip, and everyone is more motivated than ever!
By having a clear understanding of your team, their desires, and their needs both inside and outside of work, choose one of these 3 types of incentives, and you’ll be amazed by their increased enthusiasm and performance!
Written By: Paige Stuart, Planet Beach Brand Manager & Franchisee