What sales incentives and recognition programs have you used successfully?

1 Cash vs. Non-Cash Incentives

One of the most common types of sales incentives is cash, such as commissions, bonuses, or prizes. Cash incentives are easy to implement, measure, and communicate, and they appeal to most salespeople's financial goals. However, cash incentives also have some drawbacks, such as being expensive, taxable, and short-lived. Non-cash incentives, such as gift cards, travel vouchers, merchandise, or experiences, can offer more variety, personalization, and memorability, and they can also trigger social and emotional rewards. However, non-cash incentives also have some challenges, such as being harder to administer, align, and value, and they may not suit everyone's preferences or needs. The best approach is to use a mix of cash and non-cash incentives, and to match them to your sales team's profile, culture, and objectives.

2 Individual vs. Team Incentives

Another important decision is whether to offer incentives to individual salespeople or to the whole sales team. Individual incentives can foster a sense of ownership, accountability, and achievement, and they can reward the top performers and encourage the low performers to improve. However, individual incentives can also create a competitive and cutthroat environment, where salespeople may sabotage, hoard, or steal each other's leads, customers, or resources. Team incentives can promote a collaborative and supportive culture, where salespeople can share best practices, insights, and feedback, and they can leverage each other's strengths and skills. However, team incentives can also lead to free-riding, social loafing, or resentment, where some salespeople may feel that they are carrying the weight of the team or that they are not recognized for their contributions. The best approach is to use a balance of individual and team incentives, and to set clear, fair, and attainable goals and criteria for both.

3 Recognition Programs

Recognition programs are another way to motivate your sales team, by showing them appreciation, respect, and feedback for their work. Recognition programs can be formal or informal, public or private, and they can involve different types of rewards, such as certificates, plaques, trophies, badges, or shout-outs. Recognition programs can have many benefits, such as increasing salespeople's engagement, loyalty, and satisfaction, and enhancing their self-esteem, reputation, and status. However, recognition programs also have some pitfalls, such as being inconsistent, biased, or irrelevant, and they can also backfire if they are perceived as manipulative, insincere, or unfair. The best approach is to use recognition programs that are frequent, timely, specific, and meaningful, and that match your sales team's values, expectations, and achievements.

4 Examples of Successful Incentives and Recognition Programs

To illustrate some of the best practices and principles discussed above, here are some examples of successful sales incentives and recognition programs for sales managers in different industries and contexts. A software company used a gamified incentive system where salespeople could earn points, badges, and levels for completing tasks. These points could be redeemed for rewards such as cash, gift cards, or gadgets. The system was designed to be fun, engaging, and transparent, and also encouraged salespeople to learn new skills and adopt best practices. A real estate agency implemented a team-based incentive program, which encouraged collaboration between salespeople and aligned their interests with the agency's strategy. This program also had a social component where successes could be celebrated and feedback given. Lastly, a pharmaceutical company used a recognition program where nominees were selected by a committee and awarded with a certificate, plaque, and letter from the CEO. This program was designed to be consistent, fair, and relevant while highlighting the company's values. It also had a developmental component where coaching, mentoring, or training opportunities could be offered to further growth potential.

5 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?