Are you not getting the results you want? Are your salespeople falling short of sales targets? Your sales incentive program may be to blame.

There is no one-size-fits-all sales incentive program – a reason why there are so many different systems and approaches. But there is a right sales incentive program for your organization. You just need to figure out what it is.

“When you look at the right things when designing a successful sales incentive compensation plan, you’re more likely to reward the right sales behavior — and more importantly, your sales team will be more likely to achieve the sales performance you want,” says Christopher Cabrera from Xactly.

How to Create a Sales Incentive Program That Works

Whether your current incentive program is not working or you are considering implementing one to motivate your salespeople, here are five tips to help you create an effective sales incentive program:

1. Know what motivates your employees:

Understanding the factors that motivate your employees is a key element in boosting performance. Make sure your incentive program rewards desired behaviours with the incentives employees desire most. Remember that you may need to offer multiple incentives to motivate individual employees.

2. Set reasonable quotas:

One of the main things that sales reps want to know is their quota. Setting reasonable quotas, ones that are not too difficult or easy to achieve, will help keep them focused and motivated. The best quotas are challenging, but also achievable.

3. Choose the right compensation metrics:

The metrics you choose to determine compensation will impact the effectiveness of your incentive program. You know what matters most to your company, so choose metrics that will have the biggest impact on your bottom line.

4. Keep things simple:

Try to avoid creating overly complex incentive programs with multiple formulas and factors. Many incentive programs fail because of the complexity of reporting or how rewards are won.

5. Think beyond money:

It’s not always about money, although many sales incentive plans are. Rather, focus on incentives that drive desired behaviours. Get your reps involved and find out what matters to them in addition to monetary compensation.

More Articles About Sales Compensation

Learn more about sales compensation by reading:

4 Types of Sales Commission Plans

Top 4 Ways to Structure Your Sales Compensation Plan

5 Common Misconceptions about Sales Compensation

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