When introducing a Sales Incentive Programme, it's important to ensure you're still encouraging ethical selling tactics as well as seeing ROI. Here's how.
Sales incentives are an excellent means of boosting revenue at any organisation. However, when a company is focused solely on sales, it can sometimes be to the detriment of ethical business practices and employee morale (which is normally one of the principal things organisations want to change when setting up an incentive programme).
So, how can you create an effective Sales Incentive Programme that remains ethical?
1) Show the rules behind your Sales Incentive Programme
The number one thing you can do to ensure an ethical Sales Incentive Programme is be transparent about the rules and structure behind it. When you first introduce the programme, ensure you communicate and provide training so your sales team understand exactly what they need to do (and what they shouldn't do) to qualify for an award. If you make changes to the programme at any point down the line, ensure you communicate that as well.
Structure your Sales Incentive Programme to ensure there are clear criteria for winning an award.
2) Remove any discretionary awards
Linked to being as transparent as possible is structuring your Sales Incentive Programme to ensure there are clear criteria for winning an award. That criteria must avoid any discretionary elements - it shouldn't be up to a manager's judgement whether someone deserves an award (which may lead to resentment or accusations of favouritism. Instead, introduce objective measures that leave no room for dispute - an employee either achieves them and qualifies for a prize or doesn't.
3) Don't introduce your programme to get your sales team out of a trough
A frequent mistake that companies make is to see an incentive programme as a means of getting their team out of a sales trough or depression. Sales come in cycles, and when someone isn't selling, an incentive programme isn't going to help. In fact, employees knowing they're missing out on prizes may lead to resentment or even below-the-board sales tactics in order to win the awards. Instead, it's much easier to get someone who is already selling to sell a bit harder, so introducing your programme during a peak will see much better ROI.
4) Regularly review sales tactics
In order to avoid the "sales at all costs" mentality (which may lead to unethical selling), ensure you're regularly reviewing your employees' sales tactics. That way you can confirm everything remains above board while still providing incentives for your top performing sales representatives.
Sometimes members of your sales team may not realise they are practising dishonest methods for selling.
5) Remember to provide regular training
It's important to give your sales team regular training to ensure they have the best chance of success and are able to win the prizes on offer in an ethical manner. One other thing you can do to help is provide frequent training on ethical sales tactics. Sometimes members of your sales team may not realise they are practising dishonest methods for selling, so helping them understand and recognise when they may be using such tactics is a great way to ensure everything remains ethical.
Sales Incentive Programmes with Power2Motivate
With Power2Motivate by your side, your salespeople will be living and breathing your brand. We specialise in motivating employees to achieve their KPIs, maximise cross-selling opportunities and increase lead-referrals, all while reinforcing positive behaviour and motivating team members.
For more information on our Sales Incentive Programmes and how the team at Power2Motivate can tailor it to your specific business, contact the team today or request a demo.