How do you customize sales incentives for different roles and markets?

2 Analyze your markets

The second step to customize sales incentives is to analyze the markets you operate in and the factors that affect your sales performance. For example, you may have different geographic regions, customer segments, product lines, or competitive landscapes. Each market may have different characteristics, such as size, growth, demand, price sensitivity, or regulation. You need to adjust your sales incentives to reflect the market potential, difficulty, and profitability, and to encourage your salespeople to pursue the most valuable opportunities.

3 Choose your incentive types

The third step to customize sales incentives is to choose the types of incentives that best suit your sales roles and markets. There are many types of incentives, such as commissions, bonuses, contests, recognition, awards, or non-monetary rewards. Each type of incentive may have different advantages and disadvantages, depending on the situation. For example, commissions may be simple and transparent, but they may also create a short-term focus or a competitive culture. Bonuses may be flexible and aligned with strategic goals, but they may also be complex and subjective. Contests may be fun and engaging, but they may also be unfair or demotivating. Recognition may be cheap and effective, but it may also be overlooked or undervalued. Non-monetary rewards may be creative and personal, but they may also be irrelevant or inappropriate. You need to balance the benefits and costs of each type of incentive, and to match them with the preferences and expectations of your salespeople.

5 Communicate your incentive plan

The fifth step to customize sales incentives is to communicate your incentive plan clearly and effectively to your sales team. You need to explain the rationale, the structure, the rules, and the benefits of your incentive plan, and to address any questions, concerns, or feedback from your salespeople. You also need to provide regular and transparent reports, feedback, and recognition on the performance and outcomes of your sales incentives. You need to create a culture of trust, accountability, and collaboration around your incentive plan, and to ensure that your salespeople understand and appreciate their incentives.

6 Evaluate and improve your incentive plan

The sixth step to customize sales incentives is to evaluate and improve your incentive plan periodically and systematically. You need to monitor and measure the results and impacts of your incentive plan, and to compare them with your goals and expectations. You also need to collect and analyze the data and feedback from your salespeople, customers, and stakeholders on the effectiveness and satisfaction of your incentive plan. You need to identify and address any issues, gaps, or opportunities for improvement in your incentive plan, and to make timely and relevant adjustments as needed.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?