Incentives are nothing but bonus. Paying incentives to sales or production people in business enterprises has long been practiced in order to get the best out of them. Keeping due respect to all other departments in a business house, it can be said that sales representatives are the backbone of an enterprise. They are the people who encounter the intense competitive market, find out prospective clients and dealers, make them satisfied about the company’s product and services, get the details of competitor’s behavior and actions and report to the marketing cell. End of the day, they are required to justify their performance.
The basic difference of their job is that only putting daily efforts and filing daily reports are not going to satisfy the management or nourish the company. They have go produce results or sales proceedings. Even though, nowadays companies have well equipped marketing department that formulate varieties of strategic plans to back sales department as well as representatives, however, incentives encourage them to work more methodically and that boosts sales.
Mark Stiffler , considers that in high competitive market condition, in order to make the sales force work in productive ways, companies must think of paying them rewards based on their efforts and performance. Synygy is focused on offering research based consultancy services for sales force management and on incentive structures. It clientele include multinational pharmaceutical companies to insurance companies and retail houses to general sales enterprises. The benefits of paying incentives are as follows:
Motivate Sales Staffs
The key benefit of incentive program is motivating sales staff. If your sales people are lacking in enthusiasm, just think of introducing incentive plans. With this, they will simply jump start to perform and produce results, When structuring the incentive plan, keep in mind that it should be a realistic one. The goals should be specific by which representatives can earn some bonus upon completion of certain slabs. It is not mandatory that you have to offer cash benefits only. Many companies today pay incentives in the form of sponsoring holidaying scopes or other gifts.
Sales people start working harder and in more systematic ways to earn incentives. Their good efforts make them inspired to coordinate with their marketing department and distribution staffs as well as the channel partners. In a nutshell, they are likely to be loyal to their employers and other staffs. This brings a healthy environment and everyone start performing in much productive ways.
Nothing is more frustrating and wearisome than losing good sales people. One good reason that sales people leave their jobs is because they consider them under-compensated. If they find equivalent companies paying more to their representatives, in no way they are going to stick to your organization. If they are good and honest performers, then they need to be rewarded by their employers. As per version of Mark Stiffler that with solid incentive programs for your sales people, you can make you business fast flourishing and extremely productive.