3 types of sales incentive plans that could benefit your business

sales incentive plans
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The sales team in any company perform a very important role and are largely responsible for the success of a business and its profitability. A bored or uninspired sales team is very bad news, which is why incentive plans are so important in this particular department. They are implemented with the intention of motivating the entire team so that they push harder for sales and increase productivity and performance. The problem is that for sales incentive plans to work, you need to make sure that it both offers each individual something of value and is cost effective to provide. You can separate incentive plans into three main categories, and in order to find out which one works best in your specific company and environment, its best to experiment with them all.

Incentives relating to the job

These kinds of incentives are amongst the most common, as they tend to be the most cost efficient for the company whilst being very desirable by employees. The most typical example of this is extra holiday or vacation time. Whilst is costs the company in terms of productivity by having somebody out of the office, it is certainly the cheapest example of an incentive. There are other examples that relate to the job such as a new phone or tablet device. Whilst the employee is delighted to have a new, up-to-date free phone it also benefits the employer as they can use it within the job for things such as video conference calls.

Time and experience incentives

The next category of sales incentive plans relates to time and experience. These are becoming increasingly popular, as studies have found that people are more excited about an experience than a tangible product as there is more pleasure to be had. Typical experiences include a short vacation or weekend away somewhere. There are not many people that wouldn’t be excited about the thought of a paid weekend away and understandably so. Make it a weekend away for the whole team and you may well reap the extra benefits of them bonding and getting to know each other better whilst away.

Physical incentives

The third and final example of sales incentive plans can be described as physical or tangible incentives. This can be a difficult one to get right, because not everyone has the same preferences, desires and needs. Good choices for men include a formal watch or tailored suit and formal watches can be suitable for both men and women. Knowing your employees on a more personal level can help to make this decision is a bit easier.