3 C's of Compensation Programs
This post is written by EcSELL Institute's Pillar Partner Amy Trueblood, Awards Network. Awards Network falls under our Sales Compensation, Recognition, and Rewards Pillar.
This article examines how companies can maximize the impact a sales incentive program has by focusing on the three C’s of high incentive returns - Cost, Communication & Care.
Managing the Cost of Sales Incentive Programs
Sales incentive program administrators can manage the cost of the award program by simply taking the program online. Sales incentive program websites remove the need for costly printed program materials and function as a central hub for the program. Participants can visit the sales incentive program website to receive updates on their performance, browse the online award catalog and compare their performance to their peers participating in the sales incentive program. In addition, administrators can access incentive program reports online anytime, quickly determine the progress of the incentive program and suggest changes for improvement as the program progresses.
Online sales compensation programs appeal to sales people who are often on the go but stay connected to their companies through the internet by using devices such as netbooks and web-enabled mobile phones. Many clients will keep participants informed on their progress and the program in general by sending out emails when goals are met or introduced to invite users to frequently access the program online.
Communicating Sales Incentive Programs
As mentioned, email is the preferred communication method for online sales incentive programs. Communication should go both ways though-from administrators to the sales force and vice versa. Sales incentive program websites allow participants to submit feedback online which can be directly emailed to program administrators for their consideration. By opening up communication, administrators can tweak the program if necessary and maximize the potential of a sales incentive program.
Caring for a Sales Incentive Programs
Setting up a sales incentive program and then simply leaving it go without any supervision or review can doom the program’s future. Whether your company partners with industry experts to care for the sales program, appoints program administrators or does both, sales incentive programs require supervision and a review process to ensure a high return on investment is achieved. Participants of sales incentive programs often have customer service inquiries, questions about the incentive program website and other concerns that need to be promptly addressed. In addition, incentive program reporting should be monitored to track the success achieved compared to the cost of the initiative.
Compensation Force Blog previously featured an article last month on sales force compensation and revealed the results of a Watson Wyatt survey: six in ten companies listed sales force productivity and efficiency as the most significant human capital issue currently facing their sales forces. The author, Ann Bares, sums up the survey results by saying the companies are cautiously optimistic for the 2010 sales outlook while sharpening their focus on performance and productivity in the upcoming year. By following the three C’s of high sales incentive program returns, companies can achieve a high return on investment and realize their specific sales goals for 2010.
DOWNLOAD a complimentary copy of the white paper "Compensation Trends" from EcSELL Institute Compensation, Rewards, and Recognition Pillar Page. Look for it in the left hand column of the page! Enjoy!
What type of incetive programs do you have in place that work great? Share your ideas with the group.