Assess, Review, Design!
The design process of a sales incentives and reward program includes a mixture of terms, conditions and rules that apply. I would argue that the process is very specific and its steps shall be followed and thought through carefully. If the process is followed, the chances are that these common mistakes will be avoided.
Look below for some of the most common ones that are commonly seen in the market. Those are key ones to avoid when implementing a system.
Are your sales people leaving the job after a change in the motivation plan? Do they show signs of being demotivated?
The Sales Compensation Plan in place is evidently one of the main reasons sales people change jobs. It is also quite common that many organisations do not face the fact.
It is not just because the commission rates have been reduced that annoyed sales people. There are many other factors that lead to dissatisfaction. See below our factsheet with some key reasons associated with the compensation program that cause high turnover.
Start by assessing your program; watch and study data associated to performance and payout. Then you will find the individual aspects of the system to fix.
Are Sales Motivation Schemes like commission plans work, or is it a complete waste of money?
Not only current evidence from companies that are using schemes successfully for so long but also research in various textbooks and research shows that they work. Their effectiveness however depends on the way it is designed.
Below, four essential and core reasons that prove that motivation plans work.
Designing an ineffective scheme is a nightmare for every head of sales. Such a scheme is designed with errors and puts results in jeopardy.
Follow the right steps to design an efficient and effective sales compensation and incentives scheme.
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