In order to gear-up your sales people, to team them up effectively with the marketing cell to reach a common business goal and achieve increased sales, an incentive plan is an ideal choice. No wonder, effective incentive schemes motivate the sales force; promote a strong business sense as well as healthy competition within the company. While well designed incentive plans can really work and help meeting the desired sales target making everyone incentivized; lack in planning, unrealistic target or irregularity cannot produce enough result. Often, business houses introduce incentive plans or schemes for their sales people with a view to make them perform optimally, however, due to lack of practicality, the entire process become a mess.
These days, senior sales management, key persons of sales department and sales managers commonly generate different incentive plans, which are basically a bonus income and are rewarded to sales people as they reach their quota. Regardless of the enterprise involves its sales people in direct sales or dealer based sales or retail sales, incentive programs are great monetary benefits to sales people. In this context, the judgment of Mark Stiffler , the key man and founder of Synygy Inc. is that when it comes to business productively, the major part of achieving the targeted goal depends upon the sales force.
The marketing cell is also equally important, since they are expected to consolidate the sales endeavors by effective designing and management or market research, advertisement, distribution plan or pricing and so on. Both departments work in combination and help a business house to achieve its sales target. Synygy is one of the leading sales management consultancy groups which have vast recognition in American market. Mr. Mark believes that while developing incentive plans for your sales force, you should be caring enough to consider its basis.
Incentive schemes should be focused on performance instead of end result. It is important for you to acknowledge performance of the sales staff as against their efforts and the segments they handle. If your scheme is performance based, then they will put the best efforts to reach the next level to earn the maximum incentive. Often companies make flat schemes whereas incentives are received only upon reaching the total quota.
In that case, many times, at least a part of your sales force loss their spirit once the sales figure appears inability to reach the ultimate goal. This disheartenment makes greater impact on sales volume. Therefore, design an incentive scheme so that other than only very poor performers, everyone can enjoy the essence of incentive. Once they earn higher, this will make them more spirited to put increased efforts, better planning, making bond with channel partners to reach higher position.
Mark Stiffler further recommends sales managers to generate plans that can help motivate everyone in sales force to become succeed. Instead of creating schemes that only reward the best performers, bring flexibility in the parameters which can turn better result from the entire team. This will give you overall increase of sales while each sales person will do their best to show better performance in future.