Many companies offer sales incentives as part of a comp plan, paying sales commissions either monthly, quarterly or both, but how many of those companies bring sales promotions into the equation?
Used properly, promotional incentives or sales incentives which include promotions can alter the focus of the sales team to help the company achieve most company sales goals. For example, if you have two close to identical products, but one has better company profitability, a properly built sales incentive program using promotions will improve the volume of the targeted product.
Promotional incentives or promotions used in sales incentive programs, are unique in a sales compensation system because they can be dynamic. Normally companies resist making structural changes to a compensation plan during the plan year. However promotional incentives included with sales promotions allow the company to make temporary adjustments to the plan to accommodate changing dynamics of the vertical sales channel or market. Adding SPIFs is usually seen as enriching the compensation plan for the sales team while it provides needed sales incentives to reach overall company sales goals.
There is typically one challenge when considering a sales incentive plan, regardless of the market of focus in b2b sales incentive programs –
Is the guaranteed sales incentive program a reward or an incentive? The sales incentive program functions as a simple reward for those already reaching sales goals. In the example I listed above, you have two very similar products with different profitabilities to the company. If a sales rep already is selling the more profitable product and has a full pipeline, then the guaranteed SPIF will not change behavior but instead act as a reward. However if another rep is selling the less profitable product, a guaranteed SPIF could be just the financial incentive to change.
The difference in offering an online or offline sales incentive promotion as part of the sales incentive strategy? The sales incentive program becomes an incentive for all sales reps.
Even the sales representative who is already selling and hitting sales goals will respond to sales incentive programs, which provide a chance to win big cash prizes. See these methods, used by companies to increase sales within a designated window of time. Incentivize sales staff and other employees to react to your sales goals and company goals, set to benefit the company.
Companies which provide promotional risk coverage, work with you to design promotions, which increase sales through solid sales incentive strategies. For a fixed fee, which is just a fraction of the prize value, you can offer sales representatives and other employees the chance to win life-changing prizes.
When there is a winner, promotional risk management companies give you the prize money to award your winner.
