Ten Incentive Mistakes to Avoid at All Costs
- part three

Tips on Sales Incentives
and Management

STEPS IN RATING YOUR OWN
INCENTIVE/COMPENSATION SYSTEM

1. Measure present satisfaction of salespeople (use scales that include two possible answers--how it is and how it should be).
   
   
2. Compare differences between top performers and poor performers.
   
   
3. Check if top performers are substantially "happier" and low performers substantially less happy.
   
   
4. Find out what most top performers want (and what it’s worth in increased production.)
   
   
5. Find out if all salespeople believe that increased performance will increase their level of satisfaction (all should believe this).
   
   
6. Identify changes that would increase satisfaction of top performers while reducing (or holding even) the satisfaction of poor performers.
   
   
7. Monitor on regular basis (reevaluate) to check whether you’re still on track.

Note: The most frequent problem with today’s sales incentive systems is that it is too easy for poor performers to rationalize and stay on the job.

HOW TO SEND YOUR SUPERSTAR
TO THE COMPETITION

Although there is a natural resistance to change (because they have to rebuild their customer base, etc.), superstars will leave if they get too frustrated.

The Most Common Ways to Frustrate Sales "Superstars"

1. Since most "superstars" tend to be older, their preference in incentives is usually quite different from that of the younger up and coming salespeople. Incentives should be geared to reward the highest producers.
   
   
2. Rule changes that affect their selling procedure and their established selling "position" with a customer. Have they geared their presentation to benefits associated with certain product mixes, etc., only to find they now cannot deliver that mix and get the same payout?
   
   
3. Territory changes. Many good career salespeople feel that their relationship in a territory is their equity for the future.
   
   
4. Cannibalizing sales through other channels.
   
   
5. Training for high performers that is not more specific (actual show and tell examples) than conceptual (academic and theoretical). Usually the most effective approach is to gather salespeople together for brainstorming sessions on how to overcome or minimize certain problems. (Newer salespeople may need the much more concrete classroom style approach to learning and practicing the basics, along with acquiring new product knowledge).
   
   
6. Lack of clear and timely information (especially in the areas of customer relations, new product introduction and service follow up). Ignorance in these areas is degrading when in front of a client and hurts credibility.
   
   
7. Complex incentives which are difficult to understand and manipulate. "By the time they are understood, the rules will change again."
   
   
8. Lack of status and advancement while maintaining a career in sales, with opportunities for career advancement only into management. Also, do salespeople perceive a "bean counter" attitude from management which values only numbers without empathy for the process by which sales are acquired?
   
   
9. Using sales management only as a training ground to round out potential higher level executives. This emphasizes short-term goals which can run counter to a successful sales process for acquiring and keeping customers (which "superstars" have developed over a period of years).

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