Boosting Sales with Spiff Programs

In a previous blog, “Selling through B2B Reseller Channels” I mentioned that sales personnel are interested in Money and that this is often the best way to motivate them effectively in moving a manufacturer’s products through the channels, communicating with them and promoting product sales.

So what are the issues surrounding a Rewards Program?

Get Management/Owner Buy-in and Involvement

Without the support of an individual or individuals at the top of the company, you’re dead in the water before you even start. You need their agreement first before you do anything. Some distributors don’t allow any sort of programs feeling that it may encourage their sales teams to sell the wrong product.

Select the Target

Just because you have a Rewards Program in mind, doesn’t mean you have to offer it blindly through your entire distributor network. Incentives work best when targeted. Focus it on the customers you believe will perform the best if this is implemented.. Knowing who you want to act and then structuring a program to directly address their needs and wants will produce the best ROI.

Also be aware that certain countries may not even allow them as they can be classed as an unfair business practice

Set Your Sales Goals

Set clear and reasonable sales targets so everyone, internally and externally, knows what you want to achieve and what is expected of them. Without this form of objective setting any Reward Program could be seen as a sign of desperation. Make the goals sensible, data-driven and make them a stretch for the Reseller. 

Put a Limit on it

Not in terms of Rewards possible but the number of products the program applies for. Make it simple to understand. If the participants get confused, you lose. If they can’t repeat it back to you in one sentence then you’ve got it wrong

Set the Right Award Program

There are two types of rewards programs – points based and money based.

If you go with a point-based incentive solution, the point levels have to accumulate at rates fast enough that program participants can estimate how soon they can redeem points for predefined rewards.  The points themselves have to be seen as an appropriate reward for the effort expended. The problem with this is that you have to provide a sufficiently interesting set of rewards for the participant to use. This can be time consuming in itself, although there are plenty of companies on the web who will do this for you. The second issue is that you do have to have a mechanism for showing the participant exactly how many points they have on an ongoing basis and this can also cause logistical problems.

 

Personally, I always tend towards gift cards (AMEX, or Visa) for several reasons – one, because it can be an immediate reward for the right actions and activities in selling your products, and two, it is far easier to manage especially in the early stages of implementing a Rewards Program.

Communicate Frequently

You cannot over-communicate your incentive program. Tell your participants what you’re going to do, when you’re going to do it, how you’re going to do it and what’s in it for them. Then tell them again. Use Newsletters and emails and tell them how well their peers are doing. Let them do the comparisons themselves.

Involve Your Field Sales Team

If you don’t involve your sales force, you will not be effective. They are the face of your incentive program. Keep them up-to-date. Make it as easy as possible for salespeople to explain both the mechanics and the value of participating in your program.

Monitor and Adjust

Every initiative starts off with a bang, ramps up, coasts, cools off and then needs to be re-energized. Anticipate and plan ahead for this and prepare ideas, themes, special events, promotions, special offers and varied communications to lift the energy level or your program when it hits a lull.

Do all of the above and you have the potential to grow your sales via Resellers and Distributors rapidly.