Should you have an Incentive Plan that Syncs with Sales Performance Metrics?
In the world of sales, Jerry Maguire's iconic ‘Show Me the Money’ isn't just a movie quote, it resonates deeply with sales teams. Earnings are a powerful motivator, and transparency is key, but remember not everyone is motivated by money going into their back pocket. Sales reps want to see the connection between their efforts, past victories, and future forecasts. Experienced sales professionals realise the financial impact their efforts have and that it’s a combination of their sales skills along with the product/service they’re selling and the brand that they represent.
However, if a salesperson believes they're not fairly compensated, it's not just a trust issue - it can impact the entire team's motivation. So, how do you measure and leverage sales performance metrics to boost motivation? It is quite simple….Identify and reward the best performers. Ever thought about asking what motivates them? and inspire those who need to improve.
If you’re still intrinsically thinking this has to have a monetary value then I challenge you to read on!
Is it your role to sell?
As a sales person, learn to discover the rewards that extend beyond financial incentives, find satisfaction in transforming cold leads into lasting clients and find enjoyment from forging meaningful connections. Collaborate with your team to deliver an emotional response customers need during engagements. To be able to quantifiably measure, use customer satisfaction surveys and call recordings to gauge the real impact of your approach. Acknowledge that fundamentally, we are individuals interacting with one another, desiring genuine connections and positive experiences.
Unlocking Your Sales Team's Full Potential
Businesses can foster a motivated and goal-oriented sales team by embracing a comprehensive approach to setting sales compensation based on performance. There are four pillars of Sales Performance Metrics:
Financial/Sales Productivity Metrics: Focus on quantifiable aspects that are linked to quality clients, ones that are a good FIT for your business. There might be times where you are targeting good ‘FIT’ clients that are not profitable due to other business priorities and relationships. Beyond mere volume, targets are intricately linked to the organisation's financial triumphs, including profit and revenue.
Strategic Metrics: Aligning with the organisation’s strategic priorities, these measures focus on broader goals. Think customer retention, positive brand awareness, enhanced service, and elevated sales quality. Ensure a balanced approach in incentive plans to contribute in boosting both revenue and production. Often sales people thrive off hearing what their customers have said about them.
Input and Activity Metrics: Have these visible so each day/month/quarter you are doing the activity levels required for your desired outputs.
Subjective/Judgment Metrics: Beyond the measurable, these metrics revolve around defining desired behaviours and personal development objectives for salespeople. Acknowledging the softer, less tangible skills, these metrics play a supportive role in the incentive plan, recognising the value of holistic growth. For example: Does your salesperson require a quiet area to place calls, a comfortable headset, why do they enjoy customer interactions?
It’s a delicate balance of quality vs quantity. Money may not be the primary motivator, but aligning incentives with achievement, strategy, and personal growth can drive unparalleled success for both the organisation and its sales professionals.
There is significance in timing and a well organised incentive plan is only as effective as the frequency with which it's assessed. Regular check-ins against targets allow for strategic adjustments, while meaningful patterns and trends often emerge over time. Monthly, quarterly, and semi-annual evaluations ensure that the plan remains dynamic and aligned with the evolving goals of the business.
Takeaway
The development of high-performing sales teams is not a matter of chance, it results from a strategic blend of motivation, a well-defined strategy, and a carefully crafted incentive plan. Sales professionals don’t just live for closing deals, but rather thrive from the pursuit and accomplishment of achieving their goals, and importantly, helping customers get what they need. The strategic incentive plan, in turn, doesn't merely represent a triumph for the sales team, it becomes a mutual victory contributing to the overall success of the entire company.
To improve sales, be consistent and active in your sales efforts. Building relationships over the long term is the best way to build a sustainable service business. If you need help, consider outsourcing the sales tasks you don’t have time for or don’t care to do.
