Amongst Salaried Salespeople the bonus or incentive scheme can often be misunderstood. How does your present plan correlate with the Corporate needs? “Top line growth at any cost vs profitable and sustainable growth”.
Global selling into matrix-style organisations can mean that a product is used in America but purchased via Europe. Which salesperson get rewarded for that work?
Here are 5 simple steps to follow in order to introduce an effective incentive scheme:
- Reward the delivery of new, untapped and profitable repeat business.
- Business must come from a new customer or an existing customer that had previously been supplied by a competitor. There has to be a minimum number of orders within the financial year and a sales turnover value.
- This element should be uncapped in terms of earning potential.
- Reward the delivery of profit growth in the territory under the direct control of the salesperson.
- Clear signs that individuals are getting the right product mix in order to increase profit margins.
- Price increases successfully implemented
- Vale selling emphasised over volume
- Bonus kicks in at 85% of target
- Reward diligence in securing payment.
- It isn’t an order under you receive the money and the salesperson must play their part.
- Reduction of days outstanding/ receivables
- Timely Reporting.
- All visit reports/calls logged in your CRM system within 2 days
- All forecasts and budgets submitted on time and in full
- Provide Career Mapping for all team members.
- If you deliver on this you will receive this
- People are not just motivated by money, they need to see development and growth opportunities so make sure you provide them!
Let Gradient help with all of your sales training and management. Nothing today is just black and white.