The structuring of a motivational rewards package might use any or all of the formats discussed here, and a seemingly endless range of variations on these themes. If too many incentive programmers are running at any one time it might be confusing for salespersons to clarify their own priorities, and there may be some conflict between schemes aimed at short-term versus longer-term goals.
Therefore, when more than one incentive scheme is operating at the same time it should be planned that they all address compatible objectives. For example, a commission scheme that gave varying commission relating to the profitability of customer accounts, with a minimum level of profit required for eligibility for the commission,would work against an incentive scheme relating to opening new customer accounts,which would take some time to reach minimum profit levels.
Giving time to developing new accounts might put at risk the maintenance of minimum profits with established profit (and commission) earners. In this sort of situation the scheme could waive profiteer for new accounts, say for the first year.
When devising a motivational incentive scheme adopt the following basic principles: Ensure the scheme’s relevancy and compatibility with established company portfolio goals, objectives and priorities.
Base rewards on specific measurable and quantifiable criteria.
The following checklist helps in the choice of which scheme or what combination of rewards to use.
The introduction of motivational reward and incentive schemes is no substitute for thorough training and development by line managers, as under-trained salespersons will not achieve within their true potential and will become de motivated. Also, programmers be designed so that they will not impose control burdens on the sales managers.
Sales Management Related Tutorials
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Sales Management Tutorial
Roles And Functions In The Sales Force
Sales Structures And Organization
Motivational Management In The Sales Force
Sales Management By Objectives
Motivating Through Rewards And Incentives
Providing Appraisals And Feedback For Motivation, Training And Discipline
Communication In The Sales Force
Sales Meetings And Conferences
Recruitment And Selection In The Sales Force
Basic Sales Training
Field Sales Training
The Planning Process
Sales Force Administration
Sales Management Control
Merchandising At The Point Of Sale
Key Account Management
Alternative Sales Or Distribution Operations
Developing International Markets
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