Looking for the best strategy to get the most out of your sales team? We've compiled five top tips on how to motivate and engage your sales reps, to ensure the most successful results are achieved for your business.
Comparing the effectiveness of both cash and non-cash incentives has been a debateable conversation for many years within the industry. Did you know employees are more likely to perform better if they work towards a tangible reward as opposed to cash? We favour non-cash incentives as research shows that although employees say they want cash incentives, they are actually more motivated by non-cash incentives, boosting sales performance up to 300% higher than a pure cash reward.
Let’s face it, being able to show off a shiny new watch to friends and family is more rewarding than receiving cash, which will most likely end up being spent on bills. When asked to recall what a cash bonus went towards, less than 20% of people put it towards something for themselves.
Studies on Behavioural Economics suggest that incentives need to be memorable; we know that when asked to recall what a cash reward or bonus was used for, a surprising 65% put it towards household bills or they can’t recall the benefit, compared to a combined 13% putting it towards a memorable experience. To improve the non-cash incentive options even further, an all-encompassing reward scheme that offers travel will definitely mean there is something for all your employees.
2. Provide individual goals
When you let your sales reps choose their own sales goal, we guarantee you’ll see a 98% success rate, with 42% aiming for the highest goal set. Our research shows that when people set their own goals they are more likely to achieve them. If everyone works towards the same goal, some end up falling behind and become disheartened in the process.
Don’t be afraid to tailor sales targets to specific people. Consider the different motivation levels of your highest performing sales reps to those that require more effort to meet their targets. Set goals that will make each sales rep work hard, but also adjust the reward to something that is aspirational for that individual.
Remember each sales rep will have different aspirations, so providing a system with the capabilities to personalise each goal could maximise your sales results. Make your team feel like they’re part of the sales process and give them visibility on how their efforts contribute to the overall success. Having clear visibility on individual or team goals allows a sales rep to see how close they are to the finish line, and pushes them to meet or exceed their goal.
3. Moving the mighty middle
We recognise that it doesn’t always work to only incentivise and reward your top performers, as they are already exceeding their targets. Focus more on the other 80% of your sales team and make hitting sales targets more appealing to the middle and low performers. If 80% of your team start out performing previous targets, you’ll get better results than only incentivising your best performers and a much more motivated and hardworking team!
By focusing on moving the middle performers, you’ll see a bigger result and better overall success rate. Segment your team by performance, and consider the types of goals you are setting for each person. Keep your efforts transparent by providing regular communications on their performance; if the sales team feel they are being kept involved in the process they are likely to perform better.