The sales landscape is always changing and always competitive. To keep up, smart companies today are building diverse sales incentive strategies. That's because a well-executed sales incentive plan can skyrocket morale and dramatically accelerate business growth.
Just as important, a strong culture that rewards its employee for their good work can also cultivate a thriving work environment. For your sales team, that can mean more motivated sellers and lot less turnover.
So while strategies are continuing to evolve, the core emphasis remains the same: improving growth and retention by improving employee motivation and morale.
The following 4 incentive program best practices can help companies of all sizes and budgets to create a motivated sales team that's eager to exceed their targets.
A successful incentive program starts with understanding what motivates your salespeople. Monetary bonuses and digital rewards are often the go-to, but non-cash rewards can be powerful, too. It's tailoring incentives to individual preferences that will lead to higher engagement and performance.
Structure any monetary rewards in a way that reflects both individual achievement and teamwork. For example, you might consider implementing tiered commission structures or bonuses tied to specific milestones.
This way, sales professionals are rewarded incrementally, encouraging consistent effort throughout the year.
Examples of monetary incentives for sales teams include:
Also keep in mind that experiences and personalized rewards can resonate more deeply with employees than monetary benefits. Examples of non-cash incentives include:
Similarly, you might consider incentives that offer additional time off that sales professionals can earn beyond their regular leave to drive a work-life balance.
To assist a team in commemorating the achievement of reaching their target successfully, offer valuable team-building time off too -- without the boss! Drive this program with incentives that offer flexibility, like a virtual prepaid Visa.
Many companies will also offer a day off to employees on their special days (like birthday and work anniversaries) to show appreciation for their hard work and dedication, and drive these days with surprise gift card rewards!
Never underestimate the power of team collaboration. Encourage camaraderie and collective success with incentives that promote teamwork.
For example, you might promote a team-oriented atmosphere by setting group targets. When the team meets these goals, reward them with group incentives or team-wide recognition.
Some examples of group incentives include:
You might also want to consider setting up peer recognition systems, where sales professionals can publicly applaud each other. Recognizing achievements in the presence of peers fosters a culture of appreciation and respect within the team. Employees feel valued when their peers recognize their hard work and success, leading to increased motivation and job satisfaction.
Creating friendly competition between team members through challenges can also be a fun and effective way to incentivize sales professionals. Challenges could include reaching certain targets, coming up with innovative ideas, or even participating in team-building activities. The winners of these challenges can then be rewarded with incentives such as gift cards, extra time off, or other forms of recognition.
Not all sales professionals are motivated by the same rewards, and it's hard to keep track of what each member likes. Offering a choice of incentives caters to different tastes and ensures everyone finds value in working toward their goals.
So empower sales team members by letting them choose their own incentive from a full catalog of options. Consider partnering with a rewards and incentive platform that offers a diverse range of gift card options, so you can give your employee complete choice.
Hint: Pick a rewards partner that offers premium brands your sales team wants. See our Most Redeemed Gift Cards to learn more.
In addition to offering choice, consider customizing incentives for your top performers. This not only shows appreciation for their hard work but also motivates them to continue excelling and setting an example for the rest of the team.
When developing employee rewards programs, always stay on top of industry trends and ask your employees for feedback. What worked one year (or even last month) might not be as effective the next. Regularly update and communicate the incentives available to your team, and solicit feedback to ensure they remain engaged.
Incentives are the fuel that drives sales teams towards bigger and better achievements. By understanding what motivates your team, both on a personal level and as a group, you can design an incentive program that inspires and engages. Monetary rewards have their place, but remember the lasting impact of experiences, recognition, and development opportunities.
Need help optimizing your sales incentive program? Chat with Sales to see how easy it can be to amplify incentives with the right digital rewards.