Sales Incentive Programs Really Do Work-Here’s One Example Why!
December 1, 2004

Recently, I presented a program at a manufacturing client's national sales meeting. My topic was, "Am I Telling Too Much. Need I Ask?" The presentation was built on the premise that most salespeople tend to get into the mode of showing and telling what they can do for their customer, before investigating and understanding their needs.

My presentation included several solutions that focused on asking questions that enable the seller to understand and develop customer problems into needs. In particular, needs are developed for the seller's particular solutions that now become benefits. I won't bore you with the presentation's details, (if you happen to be interested, contact me and I'll be happy to review them with you!), but I do want to focus on what happened after my presentation was completed.

Unlike a lot of these presentations, my customer enabled me to participate in the full three days of their meeting, as opposed to jettisoning me out immediately after my last sentence was uttered. Here's what happened as a result of me sticking around.

The day after my presentation, the sales team presented case studies focusing on typical selling situations their team is exposed to with their distributor customers. These representatives collaborated to create slides and comments, well in advance of my presentation and the meeting itself, which would demonstrate their capability to "sell" their value proposition under various circumstances.

What struck me was the fact that these sales teams had taken time after my presentation had concluded, apparently during and after cocktails and dinner, to revisit their presentations. Some added content, while some infused their presentations with a different slant, focusing on asking questions appropriate to their case study customer's problems and needs.

I am somewhat of an egotist. However, I wasn't busting my buttons because these people took my message to heart. Rather, I was humbled by the fact that these sales professionals were willing to look at things differently, and then apply some new ideas into their work within a day. This company's sales professionals demonstrated why they are already successful, as they leave their egos at the door and remain open minded to learning and applying new ideas to improve performance.

The second revelation really occurred during the evening, after their morning case study presentations. The company has an annual incentive program for their salespeople. Annual sales goals and relevant, select targets are developed for each salesperson's territories. These goals are measured and reviewed on an ongoing basis throughout the year, with the ultimate "payoff" being a vacation, a beautiful desk memento, and "Century Club" status.

It was not hard for me to understand why their program works, and why so many people qualified for this year's recognition. Sure, the measurements were clear. Of course, the regional managers were able to utilize the program as a way to keep their salespeople focused on their goals throughout the year. Yes, these incentives were built upon maintaining a vigilance and focus on goals that create a "win-win" for the company and the employee.

But why did this company's incentive program really work? After all, incentive programs aren't unique. Most goal oriented organizations have them.

Why, in this company's case, did the incentive program really work? What was different? Why did so many people attain recognition?

I'll tell you. The answer resided in the faces of the president, the regional managers, the support staff, including marketing, customer service, operations, and finance, and most of all, the sales people themselves. As people received their awards, the four regional managers who presented them were beaming. Their words were succinct, yet heartfelt. Their respective salesperson's success was clearly a result of a partnership and mutual respect that had been working throughout the year.

Further, as the salespeople received their awards, I could see in their responses a belief that they truly had achieved something truly special. What's more, as each person received her or his recognition, everyone stood in harmony and applauded the winner's achievement. Each of the achievers took the time to thank the people within the organization who were responsible, in no small part, for their wonderful result. Each achiever applauded the other winners, including a smile, a pat on the back, or an all-knowing look that told me they understood that particular salesperson's journey.

You know, they say that the highest predictor of success in a sales organization is "teamwork." I knew that this group was interested in improving performance based upon the way they responded to my presentation's ideas. However, what really clued me in to the reason for their successful performance was the way they responded to each other, when they had a chance to be rewarded with the love, recognition and respect of their peers.

Is "teamwork" present in your organization? A recent study showed that "teamwork" in a sales organization is one of the highest predictors of success. Per haps you define it in a different way than I do. However, I suggest that if you have an incentive plan in place; make sure that "teamwork" is in place in your sales team. Oh, it goes without saying that "teamwork" needs to be present in all areas of the company. After all, owners, presidents, and managers can't expect their people to perform, if they are not willing to set an example. They need to do the proverbial "walk the talk."

Finally, I am sure that this company's incentive program will really work for 2003 based upon this comment that one of the sales people made to me who did not earn an award this year. "You know, even though I didn't achieve Century Club this year, I still feel important. The people who won are more than willing to share their experience and help. I'm going to get there next year. I hope they do, too!"