Hi, I am planning an incentive scheme for our company's sales staff. Please help me by informing me of the key points/issues that I need to understand and include while creating the policy for employees.
mandarindian 🤔
From India, Mumbai
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mandarindian 🤔
From India, Mumbai
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For successful implementation of any incentive system, the system must be tailored to the needs/objectives of the organization. Hence, the following factors need to be taken care of:
- Corporate objectives
- Corporate strategy
- Marketing objectives
- Marketing strategy
- Sales objectives
- Sales strategy
- Sales territory split
- Sales organization
- Do you want to include field sales staff - reps/area managers/regional managers, etc.?
- Do you want to include internal sales/customer service staff?
- Product group
- Product lines
- Direct sales to customers or selling through resellers
- Nature of selling (tenders, contracts, 30 days credit, etc.)
- Methods of product distribution
- Goods return policies
- Is it net sales or gross sales?
- How do you want to treat trade discounts?
- Do you want monthly incentives, quarterly, annual, or a 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, consumables, parts, accessories, etc.)
- What is the current incentive system (if any)?
- Customers from one territory ordering from another territory - how will you allocate incentives?
- Do you want to pay each individual rep 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 targets?
- 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 an incentive?
- Success for the incentive 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 incentive systems:
- Weekly
- Monthly
- Quarterly
- Annually
Regards,
Leo Lingham
From India, Mumbai
Acknowledge(1)
Amend(0)
270- Corporate objectives
- Corporate strategy
- Marketing objectives
- Marketing strategy
- Sales objectives
- Sales strategy
- Sales territory split
- Sales organization
- Do you want to include field sales staff - reps/area managers/regional managers, etc.?
- Do you want to include internal sales/customer service staff?
- Product group
- Product lines
- Direct sales to customers or selling through resellers
- Nature of selling (tenders, contracts, 30 days credit, etc.)
- Methods of product distribution
- Goods return policies
- Is it net sales or gross sales?
- How do you want to treat trade discounts?
- Do you want monthly incentives, quarterly, annual, or a 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, consumables, parts, accessories, etc.)
- What is the current incentive system (if any)?
- Customers from one territory ordering from another territory - how will you allocate incentives?
- Do you want to pay each individual rep 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 targets?
- 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 an incentive?
- Success for the incentive 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 incentive systems:
- Weekly
- Monthly
- Quarterly
- Annually
Regards,
Leo Lingham
From India, Mumbai
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