{"id":10759,"date":"2022-02-11T09:30:00","date_gmt":"2022-02-11T04:00:00","guid":{"rendered":"https:\/\/kylas.io\/?p=10759"},"modified":"2024-06-19T10:18:43","modified_gmt":"2024-06-19T04:48:43","slug":"sales-incentives-program","status":"publish","type":"post","link":"https:\/\/kylas.io\/en\/sales-strategy\/sales-incentives-program","title":{"rendered":"Sales Incentives Programs: How to Choose One that Supercharges Your Team?"},"content":{"rendered":"\n<p class=\"has-medium-font-size\">According to the 80\/20 rule, <a href=\"https:\/\/smallbusiness.chron.com\/80-20-rule-sales-team-performance-43734.html#:~:text=The%2080%2F20%20rule%2C%20also,as%20much%20income%20as%20possible.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">80% of your sales revenue<\/a> is generated by 20% of your salespeople. Naturally, every business would want their salesperson to give their best and contribute to revenue generation as much income as possible.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">It is often seen that poor sales performance can often be attributed to a lack of motivation and nothing boosts your <a href=\"https:\/\/kylas.io\/sales-effectiveness\/sales-motivation\" target=\"_blank\" rel=\"noreferrer noopener\"><u>sales team&#8217;s motivation<\/u> <\/a>more quickly than an incentive. Keeping sales representatives engaged and motivated is extremely important to keep your sales team deliver to their highest potential.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Sales incentives programs are a great way to keep your salespeople motivated and adding an incentive plan or rewarding your sales persons pushes them to deliver even more.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Let&#8217;s find out what sales incentives programs are, and how do you pick the right one for your business?<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-ht-block-toc  is-style-outline htoc htoc--position-wide toc-list-style-plain\" data-htoc-state=\"expanded\"><span class=\"htoc__title\"><span class=\"ht_toc_title\">Table of Contents<\/span><span class=\"htoc__toggle\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\"><g fill=\"#444\"><path d=\"M15 7H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><path d=\"M15 1H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1zM15 13H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><\/g><\/svg><\/span><\/span><div class=\"htoc__itemswrap\"><ul class=\"ht_toc_list\"><li class=\"\"><a href=\"#htoc-sales-incentives-explained\">Sales Incentives Explained<\/a><\/li><li class=\"\"><a href=\"#htoc-what-are-traditional-sales-incentive-programs\">What Are Traditional Sales Incentive Programs?<\/a><\/li><li class=\"\"><a href=\"#htoc-different-incentive-schemes\">Different Incentive Schemes<\/a><\/li><li class=\"\"><a href=\"#htoc-cash-incentives-vs-non-cash-rewards-for-your-sales-team\">Monetary Incentives vs. Non-monetary Rewards For Your Sales Team<\/a><\/li><li class=\"\"><a href=\"#htoc-examples-of-sales-incentives-schemes\">Examples of Sales Incentives Schemes<\/a><\/li><li class=\"\"><a href=\"#htoc-how-to-apply-the-right-sales-incentive-program-to-your-business\">How to Apply the Right Sales Incentive Program to Your Business?<\/a><\/li><li class=\"\"><a href=\"#htoc-conclusion\">Conclusion<\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-sales-incentives-explained\"><strong>Sales Incentives Explained<\/strong><\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Sales incentives are rewards that sales professionals get for completing specific goals. The rewards could be monetary or non-monetary. Sales incentive programs supplement the standard compensation structure and are helpful in motivating salespeople to improve their performance.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">According to the <a href=\"https:\/\/theirf.org\/research\/ten-things-top-performing-companies-do-differently\/2229\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Incentive Research Foundation<\/a>, 90% of all top-performing companies have some kind of sales incentive program. Reports suggest that you can increase employee<a href=\"https:\/\/theirf.org\/research\/incentives-motivation-and-workplace-performance-research-and-best-practices\/147\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> performance by 44%<\/a> with a well-structured incentive program. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Companies that ran sales incentives programs before have had a<a href=\"https:\/\/www.dcrstrategies.com\/employee-incentives\/choosing-right-employee-incentive\/#:~:text=Companies%20using%20incentive%20programs%20reported,by%20as%20much%20as%2044%25.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> success rate of 79%<\/a> in achieving established company goals when the right rewards were offered.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-what-are-traditional-sales-incentive-programs\"><strong>What Are Traditional Sales Incentive Programs?<\/strong><\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">A few decades back, when people were not aware of the internet, sales happened a lot differently. People relied entirely on the salesperson to gather information about a product. Sales representatives, in those days, played a key role in educating prospective customers and building customer relationships. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">The salesperson was the product expert and exerted a great deal of influence in the buying decisions of consumers. This structure made it easy to set business objectives and measurable performance metrics.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">For instance, companies could easily design a sales incentives program around the number of units sold in a specific period. There was no need to factor in other aspects, such as customer experience or how competitors were influencing buying decisions. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">The sales representative was responsible for the entire sales process, from finding leads to closing the deal. Companies also built sales incentive programs around quantifiable outputs without taking behavioral performance into consideration.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-why-the-traditional-sales-incentives-programs-don-t-make-sense-now\"><strong>Why the Traditional Sales Incentives Programs Don\u2019t Make Sense Now<\/strong><\/h3>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Traditional incentive modes do not make sense now because consumers do not depend entirely on sales representatives for product information. More and more people prefer to shop online nowadays, which means that they rarely interact with a salesperson. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">In 2021, <a href=\"https:\/\/www.statista.com\/statistics\/251666\/number-of-digital-buyers-worldwide\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">2.14 billion people<\/a> shopped online. According to <a href=\"https:\/\/findstack.com\/ecommerce-statistics\/#:~:text=2.14%20billion%20people%20are%20shopping%20online.&amp;text=To%20put%20that%20into%20perspective,grown%20drastically%20in%20recent%20years.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Nasdaq<\/a>, 95% of all shopping will happen online by 2040. <a href=\"https:\/\/findstack.com\/ecommerce-statistics\/#:~:text=2.14%20billion%20people%20are%20shopping%20online.&amp;text=To%20put%20that%20into%20perspective,grown%20drastically%20in%20recent%20years.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">81% of all consumers<\/a> research on the internet before making a purchase. <a href=\"https:\/\/findstack.com\/ecommerce-statistics\/#:~:text=2.14%20billion%20people%20are%20shopping%20online.&amp;text=To%20put%20that%20into%20perspective,grown%20drastically%20in%20recent%20years.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">93% of millennials<\/a> read online reviews before buying something.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">These data suggest that, besides the product knowledge of your sales rep, there are other factors that influence sales nowadays &#8211; such as company reviews, mobile apps, client testimonials, influencer recommendations, and more.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Customer journeys and sales processes have become increasingly complex. The internet has empowered customers to source information on their own. They only depend on the sales representative for supplementary information. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading has-medium-font-size\" id=\"htoc-sales-professionals-no-longer-own-the-buying-process\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">Sales professionals no longer own the buying process. <\/mark><\/h4>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Rather, they are competing against free information on the internet and a host of competitors.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">With the expansion of the selling and buying process, the role of the salesperson has also expanded. Customers want to interact only with trustworthy representatives who have their best interests in mind. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Some customers like to speak to multiple people at a company, such as sales representatives, sales managers, and account managers, before making a purchase. Doing so helps them trust the company, especially if they receive consistent messages from everyone to whom they speak.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">The modern sales incentives program needs to consider the strengths, weaknesses, and other characteristics of each salesperson to determine the right reward. Teamwork is also vital. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Businesses must implement programs that incentivize the entire team to close deals without involving a lot of stakeholders. Companies must implement sales incentive programs that align with the company\u2019s objectives, targets, methodologies, and KPIs.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">All salespeople are not the same. That\u2019s why companies must consider various options before implementing a sales incentives program.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-different-incentive-schemes\"><strong>Different Incentive Schemes<\/strong><\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">An effective sales incentives program is one that not only motivates a salesperson to improve their performance but also encourages them to work together as a team. Teamwork makes a company profitable, and competitive and promotes a healthy and productive work environment.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Ultimately, your incentives program should supercharge your team to motivate them to work hard.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Here are some of the incentive schemes you may consider:<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"492\" src=\"https:\/\/kylas.io\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-1024x492.png\" alt=\"blue infographic about sales incentive schemes\" class=\"wp-image-10768\" srcset=\"https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-1024x492.png 1024w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-300x144.png 300w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-768x369.png 768w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic.png 1200w\" sizes=\"(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px\" \/><figcaption class=\"wp-element-caption\">Sales Incentives Schemes<\/figcaption><\/figure><\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-1-role-specific-incentives\"><strong>1. Role-specific Incentives<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Sales representatives use various tactics and methodologies to navigate the sales process. You could implement an incentive program that empowers your salespeople to play to their strengths. Incentivizing sales representatives depending on their individual capabilities is the best way to do it.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">That being said, every team also has a super-achiever who outperforms other sales reps consistently. If you have a broad incentive goal, your super achiever may hit the target a lot faster than your other representatives.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">What can you do to keep them going? If your sales superstar feels that there is nothing more to gain, they may stop performing at their top capacity once they reach their goals.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Consider implementing a tiered incentive program, one that promises a higher reward for each subsequent milestone. Your super-achievers will have something to motivate them to outperform themselves. For the average sales representatives and underachievers, you will be giving them an attainable target.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\"> Hitting a milestone increases confidence and positivity, which, in turn, helps improve sales performance. According to <a href=\"https:\/\/www.forbes.com\/sites\/jimkeenan\/2015\/12\/05\/the-proven-predictor-of-sales-success-few-are-using\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><u>Forbes<\/u><\/a>, optimistic sales professionals outperform pessimistic ones by 57%. This is true even if pessimistic sales professionals have better selling skills.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-2-split-incentives\"><strong>2. Split Incentives<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Some products and services are simple enough for a salesperson to close a deal on their own. However, for complex products and services, salespeople may need to work with sales specialists or product managers to make a sale. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">For instance, many software companies keep adding new features to upgrade their products. Hence, salespeople may need the help of a sales specialist to explain the new features and product capabilities.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">If your company deals in similar products, you may consider a split incentives program to motivate both the salesperson and the sales specialist to work together to close deals. It is also a fair way to compensate both parties for closing a deal. However, how you split the incentives must be clearly defined beforehand to avoid misunderstandings and conflict.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-3-pre-sales-incentives\"><strong>3. Pre-sales Incentives<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">The current business landscape is fiercely competitive. You have numerous competitors working in the same space selling similar products. Companies, therefore, inundate customers with numerous ads and promotional offers in a bid to outperform one another.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Customers also take time to compare the products of different companies. In many cases, they may request demos from multiple companies and research the pros and cons of each product. This takes up a significant amount of time, which elongates the customer journey. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Your sales representative may be in contact with such prospects throughout their entire journey.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">In such a case, you should consider offering incentives throughout the various stages to keep your salespeople motivated. It will encourage short-term as well as long-term focus.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-4-omnichannel-incentives\"><strong>4. Omnichannel Incentives<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">With online shopping becoming more prevalent, customers are not only interacting with salespeople but also with AI bots on various digital channels in their buying journey.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Many companies are implementing smart bots so that they can respond faster to customer queries. However, it is not possible to replace humans entirely. You will still need sales representatives to nurture relationships, understand customer needs, and identify pain points.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Omnichannel incentives help to reward sales representatives for the part they play in the entire process. For instance, you may be sending automated emails with promotional materials to your customer base. Your sales representatives speak to customers who respond. Representatives who successfully close the deal should be rewarded for their efforts.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-5-analytics-based-target-incentives\"><strong>5. Analytics-based Target Incentives<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Forecasting customer demand and setting targets can be difficult in complex sales scenarios. In such cases, implementing a motivating incentives program could also be difficult.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">You could use big data analytics to create accurate sales projections and develop a predictive model for customer demand. The more information you feed into these systems, the more accurate they get over time. This can help you implement a sales incentives program that rewards your sales representatives on metrics and behavioral performance.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-cash-incentives-vs-non-cash-rewards-for-your-sales-team\"><strong>Monetary Incentives vs. Non-monetary Rewards For Your Sales Team<\/strong><\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Cash and non-cash rewards can both be effective, provided they are applied in the right scenario.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Cash rewards are the traditional way of rewarding sales representatives and are usually paid out monthly, quarterly, or yearly. The cash rewards are paid over and above their salary. The salary is in recognition of all the work that a sales representative has to do, which includes both selling and administrative tasks. The commission scheme rewards salespeople for hitting certain predetermined sales goals.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">However, it is not a good idea to cap sales commissions. Doing so means that your salespeople have no motivation to keep them going after they have hit the target.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"492\" src=\"https:\/\/kylas.io\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-1-1024x492.png\" alt=\"Infographic on cash incentives\" class=\"wp-image-10767\" style=\"width:768px;height:369px\" srcset=\"https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-1-1024x492.png 1024w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-1-300x144.png 300w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-1-768x369.png 768w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-1.png 1200w\" sizes=\"(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px\" \/><figcaption class=\"wp-element-caption\">Monetary Incentives<\/figcaption><\/figure><\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Non-cash rewards include gift cards, free trips, tech gadgets, tickets to concerts, and more. You can get creative as non-cash rewards give you more flexibility and freedom in how you motivate your sales team.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Cash rewards are viewed as compensation, while non-cash rewards tend to be fun and memorable. Your sales team may hesitate to discuss cash rewards, but they will be more forthcoming when it comes to non-cash rewards, leading to better team bonding.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Non-cash rewards also tend to have a better impact on the overall productivity, performance, and morale of your sales team.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"492\" src=\"https:\/\/kylas.io\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-2-1024x492.png\" alt=\"infographic on noncash incentives\" class=\"wp-image-10766\" style=\"width:768px;height:369px\" srcset=\"https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-2-1024x492.png 1024w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-2-300x144.png 300w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-2-768x369.png 768w, https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Inblog-Infographic-2.png 1200w\" sizes=\"(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px\" \/><figcaption class=\"wp-element-caption\">Non-Monetary Incentives<\/figcaption><\/figure><\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Ideally, a combination of cash and non-cash rewards works best to motivate your sales team.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-examples-of-sales-incentives-schemes\"><strong>Examples of Sales Incentives Schemes<\/strong><\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Here are some real-life examples of sales incentives programs you may consider:<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">An <a href=\"https:\/\/www.incentivesolutions.com\/wp-content\/uploads\/2020\/02\/Electric-Cooling-Sales-Channel-Partner-Incentive-Program.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><u>HVAC company<\/u><\/a> implemented a sales incentives scheme that offered its employees reloadable debit cards when a product purchase got approved. This program led to an increase of 45% in the number of units bought.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">A major <a href=\"https:\/\/www.incentivesolutions.com\/wp-content\/uploads\/2019\/10\/Insurance-Company-Channel-Incentive-Program-Case-Study.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><u>casualty insurance provider<\/u><\/a> implemented a channel incentives program that increased sales by 19%. The company rewarded its insurance agents with travel and merchandise rewards.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-how-to-apply-the-right-sales-incentive-program-to-your-business\"><strong>How to Apply the Right Sales Incentive Program to Your Business?<\/strong><\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">You could implement any of the incentive schemes mentioned above with a combination of cash or non-cash rewards. However, whatever scheme you choose should align with your organization\u2019s goals.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">For implementing the right sales incentives program, you need to keep a few things in mind:<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-you-should-incentivize-a-salesperson-s-behavior-and-not-the-outcome\">&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>You Should Incentivize a Salesperson\u2019s Behavior and Not the Outcome<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Many salespeople don\u2019t enjoy administrative tasks like maintaining timesheets, updating their pipeline, or scheduling follow-up tasks. By tying their behavior with incentives, you encourage your team to complete these important responsibilities.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-implement-a-plan-that-helps-everyone-succeed\">&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Implement a Plan That Helps Everyone Succeed<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">The biggest mistake that most companies make is implementing sales incentive schemes that only reward the top performers. Your program should be such that it motivates your average performers and underachievers to push beyond their comfort zones. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Doing so will convert your entire sales team into a productive unit.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-build-transparency\">&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Build Transparency<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Transparency eliminates confusion and builds trust, leading to higher productivity. Your sales team should be able to track their data so that they can evaluate their progress towards their sales goal.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-consider-group-incentives\">&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Consider Group Incentives<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Group incentives programs could be an excellent way to boost productivity, especially in project-based jobs. It also motivates team members to perform at higher levels because they feel that they may let down the team if they don\u2019t perform well.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-recognize-innovative-approaches\">&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<strong>Recognize Innovative Approaches<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">If some of your salespeople are using innovative approaches to execute regular tasks, you should acknowledge their innovation. Offering a reward is an excellent way to encourage them further.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-conclusion\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">The sales process is evolving and getting more complex day by day. That is why it is important for companies to shift the way they think about engaging and motivating sales representatives. By personalizing your sales incentives to the sales reps on your team, you\u2019ll be more likely to motivate them to work harder. The right sales incentives programs could supercharge your sales team, encouraging them to outperform themselves.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Using the incentive ideas, you can find programs that appeal to each sales rep, giving them the much-needed motivation to give their best, even through difficult times.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"ub-styled-box ub-notification-box\" id=\"ub-styled-box-4cbab7f4-dfea-4e51-8668-853529ecef4a\">\n\n\n<p class=\"has-text-color has-medium-font-size\" style=\"color:#05669f\">Along with this, using a sales CRM will help your business scale faster. If you are looking for an easy-to-use CRM with a full stack of features, <a href=\"https:\/\/kylas.io\" target=\"_blank\" rel=\"noreferrer noopener\">Kylas sales CRM<\/a> is the right choice. Sign up for a demo or a 7-day free trial to start with.<\/p>\n\n\n<\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">What&#8217;s your experience with sales incentives? Share your experience with us in the comment section below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to the 80\/20 rule, 80% of your sales revenue is generated by 20% of your salespeople. Naturally, every business would want their salesperson to give their best and contribute to revenue generation as much income as possible. It is often seen that poor sales performance can often be attributed to a lack of motivation &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/kylas.io\/en\/sales-strategy\/sales-incentives-program\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Sales Incentives Programs: How to Choose One that Supercharges Your Team?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":23,"featured_media":14577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"ub_ctt_via":"","footnotes":""},"categories":[34],"tags":[5,13,22,55],"acf":[],"featured_image_src":"https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Kylas-Banner-images-1.jpg","author_info":{"display_name":"Shagun Sharma","author_link":"https:\/\/kylas.io\/en\/author\/shagun"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sales Incentives Programs: How to Choose One for Your Team?<\/title>\n<meta name=\"description\" content=\"Increase revenue with the right sales incentives for your sales team. 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Check out some of the best sales incentive programs here!","og_url":"https:\/\/kylas.io\/en\/sales-strategy\/sales-incentives-program","og_site_name":"Kylas Growth Engine | Sales CRM Software for Small businesses","og_image":[{"width":1024,"height":768,"url":"https:\/\/kylas.io\/en\/wp-content\/uploads\/2022\/02\/Kylas-Banner-images-1.jpg","type":"image\/jpeg"}],"author":"Shagun Sharma","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Shagun Sharma","Est. reading time":"11 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/kylas.io\/en\/sales-strategy\/sales-incentives-program","url":"https:\/\/kylas.io\/en\/sales-strategy\/sales-incentives-program","name":"Sales Incentives Programs: How to Choose One for Your Team?","isPartOf":{"@id":"https:\/\/kylas.io\/en\/#website"},"datePublished":"2022-02-11T04:00:00+00:00","dateModified":"2024-06-19T04:48:43+00:00","author":{"@id":"https:\/\/kylas.io\/en\/#\/schema\/person\/58914992bfe5c67716dfe2e8863250a3"},"description":"Increase revenue with the right sales incentives for your sales team. 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