Sales Incentives

Boost Sales Success with Short-term Incentive Programs

Incentives for sales Reps are a great idea to motivate sales staff to go the extra mile and improve sales success. Short-term sales incentives provide a needed “kick” to any sales program.

Short-term sales incentives are meant to boost performance in special circumstances and are in addition to regular pay, commission and bonuses. Base commission and regular program components stay the same.

woman holding sales trophy with gold star
Short-term sales incentives boost performance

When should you deploy sales incentives?

Extra sales incentives for sales reps are often used strategically and temporarily when an organization wants to accelerate sales, reward success, or deal with challenges such as competition or unfavorable market conditions.

Motivated sales representatives are more likely to put in the extra effort to exceed their sales targets, leading to increased sales and quicker inventory turnover. “Extra” sales incentives are designed to do just that.

New Products and Services

Launching new products or services is a perfect time for extra sales incentives. Product introductions coupled with sales incentive programs boost the success and effect of new products and promotions.

Reducing Inventory

Inventory reduction reduces costs, especially storage, handling, insurance, and taxes. Sales representatives can be incentivized to move products more quickly and help mitigate overhead and free up resources.

Couple with Customer Incentives

Sales incentives may also be coupled with customer incentives that provide an extra kick to motivate buyers.

End-of-Quarter or End-of-Year

Short-term sales incentives can aid with meeting looming sales targets at the end of a quarter or end of year. Short-term incentives can help close the gap and ensure quotas are met by promoting a final burst of activity.

Addressing Competition

Aggressive competitor pricing or competitor advantages represent an opportunity to offer sales incentives as a way to address competitive challenges. Sales incentives, coupled with customer incentives, may provide an effective means to counter perceived competitor advantages.

Healthy Internal Competition

Sales contests foster healthy sales competition. Visible awards and opportunities for public recognition and praise can foster healthy competition between sales reps and sales teams. Successful sales incentive programs strike a balance between driving individual performance and nurturing a sense of teamwork.

Short Term Incentives

These “special” sales incentive programs are meant as short-term contests with specific goals, rather than as ongoing programs. Short-term sales incentive programs are designed as special, periodic contests with clearly defined objectives. They can generate excitement and energy among sales teams by offering attractive rewards for meeting specific targets within a limited period.

Introduce them as periodic contests to maintain excitement and create urgency and a competitive spirit. Contests encourage creative problem-solving and immediate action. and to drive short-term goals.

Don’t overemphasize monetary rewards. Sales incentive “contests” are meant to be above and beyond regular compensation and are meant to bring some fun into the workplace.

Types of Incentives

Monetary Incentives

These awards can take the form of digital wallet-enabled cards to make it easy for recipients to use your incentive. Let your recipient choose the payment choice they prefer. Choose from recognized payment cards or other financial instruments such as PayPal and Venmo, for example.

Non-Monetary Incentives

Gift cards – with plenty of selection as to specific merchant – give recipients the choice of their preferred merchant and gift. Letting recipients choose can often make the reward more memorable.

Mix and match merchandise, gift cards, payments, and more.

Merchandise

Provide sales incentives that allow a choice from thousands of merchandise options – from technology to personal care – with no crazy markups, exaggerated shipping fees, or hidden costs. Merchandise typically has a long life as a reminder of sales success. Offer a single item, curate a unique selection that fits the sales promotion, or include an entire catalog of merchandise.

Charity Options

A charity campaign is a good way to run a short-term promotional campaign. Charity options added to your mix of gift cards, payments, and merchandise are a great choice for those who want to express gratitude by supporting organizations that help those in need.

Team-Based Rewards

Regularly encourage team collaboration by offering rewards to the most successful teams. Incorporating group incentives alongside individual rewards gives everyone a chance to take part and promotes teamwork.

Recognition

Couple short-term sales incentive contests with plenty of opportunities for individual recognition. Offering a reward of lunch with managers, or facetime with senior executives may also be a powerful motivator.

Paid Time Off

Offering extra paid time off, as an incentive, lets sales people recharge and rejuvenate, which can help them return to work feeling refreshed and more productive.

Experiences

Experience awards create memorable moments. A travel reward might offer a weekend getaway or a travel voucher to a destination. Recipients might get access to concerts or sporting events or fine dining. Choices ensure a unique and unforgettable reward.

Sales Incentive Fairness

Sales incentives must be seen as fair by sales representatives to be most effective. Organizations must set clear criteria for rewards and make sure there are clear instructions and processes. Ensure that those rules are clear, consistent, and fair. Fairness helps to support morale and increase motivation across the entire sales team.

Redemption should be simple and easy to navigate and complete. Incentive automation systems help ensure ease and simplicity, as well as economy, manageability and ease of administration.

Summary

Well-designed sale incentives help motivate sales whenever an organization wants to accelerate sales, reward behavior, or overcome challenges such as slow demand or high competition. They can provide an excellent, temporary boost to results. It’s important to evaluate value and use sparingly. Collect feedback and suggestions from sale teams at every step of the way to ensure effectiveness.

Related Reading:

Small Acts: Big Impact

Gratitude and appreciation are powerful tools that positively influence employee well-being and enhance the success of your organization.

Employees that feel appreciated report being more engaged and motivated, which adds to productivity and an increase in job satisfaction.

  • Incentives Enhance Recognition

  • Reminder of the Achievement

  • Boost Sense of Value

  • Encourage Future Success

  • Bragging and Storytelling

Happy employees clapping after another message of gratitude and appreciation
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