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Four proven tactics for incentivizing sales teams and enhancing their performance in 2024 and beyond
January 17, 2024
Your sales team is the driving force of your company. They are the key to keeping you profitable but also help you gauge consumer (B2B or B2C) response to a given product or service. Consequently, keeping them motivated is mission-critical. Understanding that a toxic Glengarry Glen Ross environment doesn’t play well in 2024, your organization is dedicated to creating a program that will foster an on-premises and/or virtual sales floor that is positively kinetic.
The success and sustainability of such a program is rooted in your sales team's incentivization strategy. Studies have shown that long-term incentive programs lead to greater performance gains over shorter-term programs. As a result, it’s important for your organization to take its time in creating a program and sticking with it for the entire annum before drawing definitive conclusions. The following incentives for sales teams are backed by research, and when adopted by your company, will not only foster a more productive environment, they will help increase your bottomline.
Reward programs are a form of positive reinforcement that are ubiquitous in sales team management for a good reason – they work. Reward programs are separate from traditional cash bonuses and commissions. They typically feature gift cards, event tickets, extra time off, and work-from-home days (for on-premises staff).
However, individual reward programs can be problematic in that they may create animosity and division between sales team members. Studies confirm that team-based reward systems generally outperform individual-based and hybrid systems. The result is more cooperative behavior as the sales team cohesively moves towards the company goal of increasing sales. Interestingly, team reward programs often create a role of self-sacrificer. These individuals play a critical role in enabling other team members (and the entire sales team) to perform better at their own expense. An example is when one member of the sales team recognizes that another member may be better suited to communicate with and pitch to a given lead due to prior experience or common ground. Under an individual reward program, this self-sacrificing behavior would not exist. But under a team reward program, it does.
Sales teams have always, and will always, respond well to financial bonuses and commissions. That being said, traditional bonus and commission structures are not as effective. As with other reward programs (above), traditional bonus/commission structures can sometimes lead to unhealthy competition between sales staff and subsequently discourage teamwork and collaboration. In our article about How to Build a Winning Sales Team, we introduced innovative concepts that we encourage your company to integrate for 2024. Profit sharing, where a portion of sales profits are distributed among the sales team, is highly effective in fostering cohesion towards a common sales goal.
Another example of an innovative commission structure that can be applied to an individual or team is a tiered commission. Tiered commissions reward sales staff for reaching specific milestones or targets. For instance, if a sales representative (or team) reaches their monthly or quarterly target, they receive a higher percentage of commission on all subsequent sales made during that period.
This is one of the most powerful incentives, and it doesn’t cost your company a penny to initiate. In addition to giveaways (gift cards, etc.) and bonuses/commissions, reward impressive sales performances via public (corporate environment) displays of achievement. Communications can go out via the company newsletter or even media press releases. Moreover, take note that the more tangible the communication of achievements are, the more impactful it can be. It’s one thing to communicate hitting of sales goals, but another to display them for all to see
When it comes to rewarding a sales team, who doesn’t love a little PDA?
Among incentives for sales teams is a nuanced approach that is not only a powerful method for increasing sales, it is essential to retaining staff members who are integral to revenue generation. The point is don’t just incentivize staff to sell; incentivize staff to stay with the company.
In this article about How to Retain Top Performing Sales Talent, we stated the importance of regular communication about opportunities to grow within the company. In addition to sales meetings, hold regular career development meetings to discuss future growth opportunities in the company along with opportunities to partake in voluntary training and development. These meetings should encourage two-way communication so that staff can share their future goals and ambitions and even provide valuable feedback on how things can be improved in the sales process.
The ability to “be heard” is a major incentive in itself.
Incentive programs are terrific motivators for sales teams but aren’t a substitute for talent building or skills development. Incentives can lose their luster over time as well if your people feel like they aren’t having much success. Like any other discipline, with the proper training and routine mentorship, salespeople become more effective, motivated and passionate over time. Establishing a regular sales training program for your team can help your people learn how to:
What’s more, sales training is an opportunity to build the esteem of your top players and make them feel valued.
The Sales Connection specializes in creating powerful outsourced sales teams and programs for online educators, coaches, consultants, and B2B sales teams. We help recruit, train, incentivize and retain valuable human resources. To learn more about our sales training programs here, or contact a specialist for a FREE consultation
Kayvon Kay
Kayvon has over two decades of experience working with high-level closers and perfecting his sales methodologies. He has earned the title of Canada’s #1 pharmaceutical sales representative and continues to share his expertise as a keynote speaker and through his multi-million-dollar coaching program.
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