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 :?:
From India, Mumbai
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 :?:
From India, Mumbai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
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
From India, Mumbai
258FOR 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
From India, Mumbai
Sales Incentive.xls
Incentive Plan policy-template s.doc