What are the Essential Features of an Incentive Based Sales Force Management?
Company managements in order to motive their respective sales forces, often implement incentive based sales force management techniques. This primarily involves giving incentives to all members of the sales team on the successful execution of the sales target. However, this is a simplistic approach to an incentive based sales force management. The management of sales consultancy firms like Syngy Incorporated mention that motivation is essential in order to help the sales force of any company to perform better. While motivating the sales team data analytics, business management techniques and transaction processing should be taken into consideration, in order to ensure proper implementation of incentive based sales force management.
As the CEO of Syngy Incorporated Mark Stiffler has been proactively consulting with managements of pharmacies, insurance companies and software firms to help them with sales force management. Having completed his business studies from Sloan School of Management, MIT, Stiffler went on to work as a management consultant. It was during his stint as a management consultant, that Stiffler came to understand and appreciate the importance of sales force management. This led him to start Syngy Inc. in1991. According to Stiffler, the incentive based sales force management can help motivate and promote sales of a particular firm. However, there are certain features of incentive compensation management or sales compensation management, which are as follows:
- Incentive programmes: These incentives are usually in the form of percentages calculated based on the sales made. In other words, if you are able to reach the sales target, you will earn a percentage of the total sale amount. This type of incentive based sales management techniques are implemented by insurance companies. Depending on the number of policies that the sales team is able to sell, the team members or even a single insurance agent will earn incentives.
- Redeeming points: Software firms offer point based incentive programmes. Depending upon the nature of the services offered by the software firm points are rewarded to employees on successful completion of a transaction. These points can be redeemed by employees.
- Non-cash incentives: In order to boost the sales margins companies can introduce special incentive programmes like fully paid trips for the family of the employees. These incentives work as an added motivation for the sales team. Although, these are non-cash incentives, yet these have a greater appeal to salesforce.
However, irrespective of the type of incentive programme that you wish to implement, it is essential to take into consideration the perspectives of your company’s salesforce.
Mark Stiffler as the CEO of Syngy Inc. mentions that it is essential to implement suitable sales management techniques for companies, to ensure customer loyalty. If you want repeat customers and renewal of the pre-existing contracts, it is essential to motivate the sales teams of your company to perform better. Hence, if you are looking to improve you company’s sales margins, then consider hiring the services of a firm that provides sales management consultancy services.