Motivating Sales Performance

Have you ever wanted to get your sales team excited, improve their skills, increase sales activity, and most importantly, increase sales? A successful sales promotion or contest is an innovative way to motivate sales performance.

Few organizations or managers use promotions well. This is probably true because it takes a great deal of preparation and planning to be successful. However, the time spent will pay dividends and not only increase sales but boost sales team morale also.

Successful promotions begin with a clear idea of what is to be improved or changed. Once the areas of improvement or objectives have been identified, the promotion can be designed by working backward to determine what is needed to produce the desired end result. Veterans may cover several objectives with a promotion but beginners are better off concentrating only on one of two areas.

Promotions can focus on these three areas:

There are two basic types of promotions. The first is called the "Stack Ranking" promotion where individuals compete against each other. This type is easier to track and publicize but is only effective if everyone is evenly matched. The second type is an "Individual" promotion where salespeople compete against an assigned target. The setting of targets for an individual promotion requires more work, but it provides everyone with the opportunity to win and usually has a greater positive effect on the entire group.

The length of your promotion will depend on your goals. Year long programs, such as IBM's 100% Club and Golden Circle or Xerox's Par Club and President's Club, promote consistently high performance. Shorter promotions, usually of a month or less, tend to produce high energy and quick returns. Even though shorter promotions may be less formal, they still must be well thought out and highly publicized.

Contrary to conventional wisdom, prizes do not have to be expensive to motivate salespeople. Money is usually the worst kind of award because it is quickly spent and forgotten. The best prizes tend to be items, such as a briefcase or television that are kept and remind the salespeople and others of past success. Awards or prizes, such as plaques and trophies that are highly visible to the rest of the organization, can be great motivators.

For example, a successful promotion utilizing creativity and imagination was conducted by a company that split contestants evenly between two groups and had them compete against each other. The prize consisted of having the losers serve lunch to the winners. Performance in both groups improved so dramatically that upper management declared each group a winner and served them lunch.

Publicity is one of the most neglected areas of running a successful promotion. It is essential for everyone to know where they stand and what must be done to win. Details, even if they are hand written for a quick and impromptu contest or promotion, must be committed to paper and distributed. Publicize the standings or results frequently for best results.

The prize is only part of the benefits of success in a promotion. Excitement, competition, recognition, and pride of accomplishment many times may be the most significant factors in increasing performance. Promotions provide a positive reason to focus on improving performance.

A well planned and well run promotion can add fun and excitement, while increasing sales results. Results are only limited by your creativity, imagination, and communication.

Common Pitfalls to avoid:

Promotion Checklist: