Leolingham2000
Management Consultant

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Hi,
I am planning an incentive scheme for our companies sales staff. Please help me in this by telling the key points/issues which I need to be understand and include while creating the policy for employees.
mandarindian :?:
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mandarindian

FOR SUCCESSFUL IMPLEMENTATION OF ANY INCENTIVE

SYSTEM , THE SYSTEM MUST BE TAILORED TO THE

NEEDS / OBJECTIVES OF THE ORGANIZATION. HENCE

THE FOLLOWING FACTORS NEEDS TO BE TAKEN CARE OF

-CORPORATE OBJECTIVE

-CORPORATE STRATEGY

-MARKETING OBJECTIVEcustomer

-MARKETING STRATEGY

-SALES OBJECTIVE

-SALES STRATEGY

-SALES TERRITORY SPLIT

-SALES ORGANIZATION

[do you want to include field sales staff -reps/area managers/regional manager etc]

[do you want to include internal sales / customer service staff ]

-PRODUCT GROUP

-PRODUCTLINES

-DIRECT SALES TO CUSTOMERS OR SELLING THROUGH RESELLERS

-NATURE OF SELLING [ TENDERS OR CONTRACTS OR 30 DAYS CREDIT ETC

-METHODS OF PRODUCT DISTRIBUTION

-GOODS RETURN POLICIES

-IS NET SALES OR GROSS SALES

-HOW DO YOU WANT TO TREAT TRADE DISOUNTS

-DO YOU WANT MONTHLY INCENTIVES OR QUARTERLY

OR ANNUAL OR COMBINATION

-DO YOU WANT TO PAY CASH OR OTHER REWARDS

-WHAT IS THE TAX POLICY ON THIS

-HAVE YOU CONSIDERED FRINGE BENEFIT TAX

-NATURE OF THE PRODUCTS

[big ticket items like tractors or consumables or parts or accessories etc]

-what is the current incentives system [ if any ]

-CUSTOMERS FROM ONE TERRITORY ORDERING FROM

ANOTHER TERRITORY--how will you allocate incentives

-DO YOU WANT TO PAY EACH INDIVIDUAL REPS ON HIS/HER TARGET

-DO YOU WANT TO PAY FOR TEAM / GROUP EFFORT

OR BOTH COMBINED

-WHAT ABOUT THE INCENTIVES, WHEN PEOPLE LEAVE IN BETWEEN

-WHAT ABOUT THE INCENTIVES, WHEN PEOPLE JOIN MID-STREAM

-IF A REP IS SACKED FOR MISCONDUCT OR DISCIPLINE

WILL YOU PAY THE INCENTIVES

-IS THERE A LIMIT TO THE EARNINGS OF INCENTIVES

-WILL YOU LIMIT THE INCENTIVES -AT WHAT LEVEL

-IS THE INCENTIVE LIMITED TO SALES TARGET

-DO YOU PLAN TO INCLUDE OTHER PERFORMANCE FACTORS

-WHAT ARE THEY -HOW WILL IT BE MEASURED

-WHEN A REP GOES ON ANNUAL LEAVE OF 4 WEEKS

how will you account for the incentives

-IF YOU EMPLOY A RELIEF REP., will he/she be paid incentive

-SUCCESS FOR THE INCENTIVES SYSTEMS COMES FROM

SALES LEADERSHIP ON THE FIELD AND OFF THE FIELD

HENCE THERE MUST BE SUITABLE REWARDS FOR

THE LEADERSHIP

------------------------------------------------------------------------------------------

**SALES INCENTIVES PUSH THE SALES INTO CUSTOMERS/

RESELLERS.

**TO PULL THE SALES

-DO YOU PLAN TO TAG A BONUS SCHEME FOR CUSTOMERS/

RESELLERS AND ACHIEVE GREATER SUCCESS IN SALES.

------------------------------------------------------------------------------------------

-HOW WILL YOU EVALUATE THE INCENTIVES SYSTEMS

*WEEKLY

*MONTHLY

*QUARTERLY

*ANNUALLY

regards

LEO LINGHAM
Hi we are planning to introduce Incentive scheme for service / customer service support staff, pl. let me know key points to be considdered
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