Sales Incentive
Many companies use cash and noncash incentives to motivate sales reps. They use short-term inducements for a varieties of reasons. Special cash incentives usually are paid to push a specific product or land new accounts during a compressed time period. These incentives may be used to induce reps to shift product mix emphasis, to combat competition, overcome seasonal sales slumps, boost the sales of the most profitable lines, or ensure a new product gets a short-term boost in sales attention.
New products usually take reps considerably more time to sell than do proven ones. Short-term cash inducements provide the rep with positive reasons to take the time to win over customers to the new product. Cash incentives are becoming less popular. They are often less motivating than expensive merchandise award, a trip, or are cognition symbol such as a ring, plaque, trophy, or desk set.
The rep can show off merchandise awards or share the experience of a trip prize with other, if it was wan by the entire sales team. Reps remember the energy and work that went into the noncash recognition long after the cash award is spent (often to pay bills).if merchandise awards involve choosing from among a selection of prizes, the reps can put their own personal value on the prize, since it may represent something they would simply use the cash to reduce a debt, save for their children’s education, buy a new appliance, or purchase useful, but not “once-in-a-lifetime,” items.
Trip prizes have “fantasy value” as motivators. They keep the rep thinking about and identifying with the trip’s benefits as her or she pursues extra sales performance. Where sustained performance is desired by the sales manager, a trip prize motivates far more than do merchandise or cash award. Trip prize, combined with recognition awards that are publicly presented with fanfare to the out standing achievers during the trip, are very motivating.
Tags: sales, sales activity