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Casual Articles - Small Business: Do Incentives For Non-Sales Staff Work?
In today’s competitive environment, every organization is trying to improve sales results. In every company, the most important – and vulnerable – link in the success chain is the performance of their people. As a sales management trainer and coach, I see that managers across every industry fail to take a hard look at the capacity of their people to provide the service -- whether it’s to internal or external customers – that puts them in a league apart from the competition.As a sales manager, you can set the context for your team to pull ahead, or ‘breakaway’ from the competition. Context sets the tone and often determines the meani
The way my colleague overcame this problem was to use product based rewards rather than financial rewards. Essentially, he rewarded staff members pieces of technical equipment rather than financial rewards and you know something, sales went up in his business 30%. Go figure.
Using financia
Like all else in the media world, advertising has changed dramatically since the huge growth in popularity of the Web.The power of retailers has multiplied, television has become the dominant selling medium for consumer goods, market research has become increasingly sophisticated, global brands have flourished, independent media specialists have become a major force, and yet…Advertising agencies are in the doldrums that is because the services they provide, the way they should be paid and their relationships with their clients are all in jeopardy.There is much uncertainty, much debate, much nervousness, and no sign of an
There are three incentive models that most business owners will use in driving sales and they are -
1. Financial Rewards
2. Recognition of Service
3. Responsibility Reward
1. Financial Rewards
Many businesses, in particular small businesses will use financial rewards as one of their primary techniques for driving sales. The rewards can be in one of two forms, either direct monetary rewards or in the form of products and services. However, in this time of good quality wages and affluence this often does not work.
Let me explain …
I had a colleague, who owned an Office Equipment business and recently sold it and one of his greatest challenges was stopping the competition from pilfering his clients. His greatest asset in the workplace was the technician who repaired the photocopiers and other business equipment. These guys are great assets simply because they were non-confrontational with the clients where as sales staff are often people everyone tries to avoid.
In fact in many cases, if a technician actually advised the client on what was the best product to purchase the client almost always, well at least to 90% of the time would purchase the product based on their advice. My colleague recognized this and implemented a financial rewards system to encourage the technicians to look for opportunities to upgrade the client's machines when they were working in their workplace. Guess what … did not work.
Why?
Well for two reasons, one, the technicians were paid that well, they did not care about the financial rewards and secondly most technicians only care about the technology. Essentially they were geeks and would rather a new piece of equipment than money. I know, sad, very sad.
The way my colleague overcame this problem was to use product based rewards rather than financial rewards. Essentially, he rewarded staff members pieces of technical equipment rather than financial rewards and you know something, sales went up in his business 30%. Go figure.
Using financia
For training to work, it has to stick. "Sticky" training provides people with knowledge and skills that significantly improve their work product, productivity and success. Workshops, lectures and training sessions are wonderful, time-tested training tools. You know they work, but now you may be looking for something a little different. Following are five secrets for increasing the odds your people use what they learn from training.Secret #1: Go OrganicPeople are creatures of habit. They may be perfectly willing to try something new, but if it conflicts with how things are done in their organization, they may n
1. Financial Rewards
2. Recognition of Service
3. Responsibility Reward
1. Financial Rewards
Many businesses, in particular small businesses will use financial rewards as one of their primary techniques for driving sales. The rewards can be in one of two forms, either direct monetary rewards or in the form of products and services. However, in this time of good quality wages and affluence this often does not work.
Let me explain …
I had a colleague, who owned an Office Equipment business and recently sold it and one of his greatest challenges was stopping the competition from pilfering his clients. His greatest asset in the workplace was the technician who repaired the photocopiers and other business equipment. These guys are great assets simply because they were non-confrontational with the clients where as sales staff are often people everyone tries to avoid.
In fact in many cases, if a technician actually advised the client on what was the best product to purchase the client almost always, well at least to 90% of the time would purchase the product based on their advice. My colleague recognized this and implemented a financial rewards system to encourage the technicians to look for opportunities to upgrade the client's machines when they were working in their workplace. Guess what … did not work.
Why?
Well for two reasons, one, the technicians were paid that well, they did not care about the financial rewards and secondly most technicians only care about the technology. Essentially they were geeks and would rather a new piece of equipment than money. I know, sad, very sad.
The way my colleague overcame this problem was to use product based rewards rather than financial rewards. Essentially, he rewarded staff members pieces of technical equipment rather than financial rewards and you know something, sales went up in his business 30%. Go figure.
Using financia
ABSOLUTELY NOT! Did you know…According to a national survey of employees who accepted a counteroffer, 75% voluntarily left their employer within six months of accepting the counteroffer because of promises not kept!The majority of the balance of employees that accept counteroffers involuntarily leave their current employers within twelve months of accepting the counteroffer (terminated, fired, laid off).What should you do???Don’t be surprised by a counteroffer. Ask yourself, why would a company wait until the eleventh hour to keep someone it claims to value so highly?Don’t be fooled. A counteroffer is no
In fact in many cases, if a technician actually advised the client on what was the best product to purchase the client almost always, well at least to 90% of the time would purchase the product based on their advice. My colleague recognized this and implemented a financial rewards system to encourage the technicians to look for opportunities to upgrade the client's machines when they were working in their workplace. Guess what … did not work.
Why?
Well for two reasons, one, the technicians were paid that well, they did not care about the financial rewards and secondly most technicians only care about the technology. Essentially they were geeks and would rather a new piece of equipment than money. I know, sad, very sad.
The way my colleague overcame this problem was to use product based rewards rather than financial rewards. Essentially, he rewarded staff members pieces of technical equipment rather than financial rewards and you know something, sales went up in his business 30%. Go figure.
Using financia
In discussions with clients and business associates, and during my work as a tutor with university students, I am often surprised at the lack of understanding of how ubiquitous the marketing function is within an organisation.Marketing is pervasive - the often silent influencer of opinions, preferences and buying habits.Not that I should be surprised. After all, most people don't think about marketing every day of the week like I do! But I have noticed that the marketing function is often mistaken for its component pieces - press advertising, personal selling, sponsorship, public relations, direct mail, Internet banner ad's etc
Why?
Well for two reasons, one, the technicians were paid that well, they did not care about the financial rewards and secondly most technicians only care about the technology. Essentially they were geeks and would rather a new piece of equipment than money. I know, sad, very sad.
The way my colleague overcame this problem was to use product based rewards rather than financial rewards. Essentially, he rewarded staff members pieces of technical equipment rather than financial rewards and you know something, sales went up in his business 30%. Go figure.
Using financia
As I prepare this issue of this Newsletter, at 37,000 feet on my way to Greenville South Carolina, the east coast is being battered by a Hurricane.All hurricanes seem to start out as a blip on a distant radar screen. It grows in size and intensity as it draws closer to the shoreline. They don’t follow a prepared script or take a predictable path.At the center, is the famous eye of the storm. Surrounding the eye . . . well, you know the rest.Some salespeople seem to behave like hurricanes, are you one of them? Answer these questions for a hurricane (style) check.1. Are you completely organized at the start of
The way my colleague overcame this problem was to use product based rewards rather than financial rewards. Essentially, he rewarded staff members pieces of technical equipment rather than financial rewards and you know something, sales went up in his business 30%. Go figure.
Using financial or product based rewards will only work if the non-sales staff really cares about what you are offering and this is where you as the business owner must really get to know your staff. My colleague prior to using technology as a reward tried other rewards like weekends to Hamilton Island, trips overseas and none of it worked. Personally, I would have had the weekend to Hamilton Island but the key is understanding your staffs want and needs, just like you need to understand your customers.
2. Recognition of Service
One of the most fascinating businesses I have ever worked in was McDonalds, in fact I spent 10 years there and my first job was at a new McDonalds that was opening in Townsville. What has always fascinated me about McDonalds is their ability to engage 15 and 16 year olds in working hard even when there wages were, minimum.
In fact the way we were engaged was through a series of recognition processes which included achieving badges for service and the points earned during the year were added up and put towards earning major prizes at a yearly awards night held at the local 5 Star Casino. In fact one year, the local franchisee actually gave a car away as part of the reward process. This technique of rewarding staff for service ensured that their McDonalds were one of the top stores in the country. In fact many of the stores in the Townsville region have taken out top awards for service because of the service recognition system. It simply encouraged people to be the best at what they were doing.
3. Responsibility Reward
Most business people and sales staff in today's business environment want to offload their responsibility rather than taking on more but you maybe pleasantly surprised to know that some of your staff may relish and be chomping at the bit to get the chance to take on your excess responsibility. So how do you do you reward excess responsibility …
The first thing you need to do is to give
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