A Case For Incentives
As You’re Budgeting for ’23, Plan for Incentives
Incentives, rewards, and loyalty programs can have a remarkable impact on the success of your business.
As we enter Q4 and the planning season or 2023, we’ve outlined some of the key benefits of budgeting for performance-based incentive programs.
Focus on sales performance
Incentive programs allow you to quickly focus the behavior of sales teams and distribution partners—without tinkering with long-term agreements.
Act and react to market conditions
Incentives can be quickly changed and modified to allow companies to react—and initiate—based on business conditions. They provide a great way to quickly respond with a structure that commits investment only for the length of the program—usually only 12 months at a time (the rules can change in year two; the bar can be raised.)
Improve the individual performance of the masses in the middle
Almost every organization has a group of performers in the top 20% who give their all in every situation, and another 20% at the bottom, who don’t have the skill, or the will, to succeed. Incentives allow you to motivate the middle 60% between them: getting their best will typically yield modest per-person gains, but by volume the collective impact can be significant. And because your top 20% is competitive – they won’t sit idle while a 60-percenter creeps up on them.
Gain and maintain the loyalty of your top performers, partners, and customers
While the top 20% will always perform, incentives provide an opportunity to gain and retain their loyalty. As these partners become entwined with a manufacturer’s business (and become key to their success), group travel incentives provide a way to both reward them and build key relationships with the sponsoring company.
Pay only for performance
With properly designed incentives for sales teams and channel partners, you essentially pay out only when your team achieves its financial objectives.
Non-cash incentives are more impactful than cash incentives. Merchandise carries your brand, and experiences create lasting memories and stronger relationships. Points provide the ultimate gift of choice. And travel – that breaks down the formal barriers between buyer and seller and transforms the relationship into one that is equal parts respect and friendship.
At Next Level Performance, we’ve been designing award-winning incentives, recognition, travel and experiences for 45 years. We’d love to design your next winning sales incentive.