Looking to pump some excitement into your sales team,? Sales incentives, sales contests, increase sales, increase revenue, to your company. Your sales team will love these promotion ideas to help get them excited about winning new accounts.
12. Variable Ratio Reward Cards™
There are 20 rub off spaces on the front of each card. Beneath
5 of the spaces is the word “WIN”. Participants rub off any 5
spaces. The number of WINs uncovered (and your budget)
determines the award!
13. Variable Ratio Reward Cards™
You want to motivate Sales Reps to Open New Accounts &
Sell More of Your Product. Your incentive budget is $25 per New Account
& $25 per “X” cases sold. An example of the Variable Ratio Reward
Card™ that could be earned is:
WINs Uncovered
0
1
2
3
4
5
Points
2,000
3,000
4,000
10,000
100,000
Cruise
($)Value
10
15
20
50
500
3,000
(or 600,000 points!)
Your fixed cost is $24.96 each, which is the average awards value of the
card. VR Cards™ are invoiced as they are issued @ a fixed cost to you.
Note: We recommend Sales Managers receive VR Cards
based on their salespeople’s performance
14. Variable Ratio Reward Cards™
The primary motivational power
of VR Cards™
Jackpots on Every Card!
(VR Cards™ are not
seeded; each card has the
opportunity for the grand prize
award)
Every Card is a Winner! (No
losers)
15. BINGO Sales Contest
BINGO
BRING IN NEW GROWTH
OPPORTUNITIES
HOW YOU PLAY
For Every $200 of Katun
Equipment Sold fills a
Square
One Row win 100 points
Two Rows win 200 points
Three Rows win 300
points
Four Rows win 400 points
All Rows win 600 points
$ Sold based on Katun
price to Dealer
A
1
2
3
4
5
.
B
C
D
E
16. Tic Tac $ Sales Contest
HOW YOU PLAY
Model
Model
Model
Model
Model
Model
Model
Model
Model
Sell XXX Graco Equipment
to a Customer and fill a
Square
Three Squares in a row
win 100 points
Six Squares win 300
points
All Nine Squares win 600
points
$ Sold based on Graco
price to Dealer
Select Prizes with the
Points Won
17. Plateau Sales or Purchase Contest
Sell a Lot and Win a Lot
Plateau Structure
$ Sold based on Graco
price to Dealer
Select Prizes with the
Points Won
Payout 2% of sales
Points/
Gift
$500
$100
$750
Win More with
Graco
Graco
$ Sold
$150
$1000
$200
$1250
$250
$1500
$300
$1750
$350
$2,000
$400
$3,000
$600
$4,000
$800
$5,000
$1,000
18. Promotion is Less Risky than
Discounts, Rebates or Free Goods
If Your Present Gross Margin Is:
5%
Cut
Price
1%
5%
10%
15%
20%
10%
15%
20%
25%
30%
40%
You Need an Increase in Unit Sales Of …
25.0%
11.1%
7.1%
5.3%
4.2%
3.4%
2.6%
100.0%
50.0%
33.3%
25.0%
20.0%
14.3%
200.0%
100.0%
66.7%
50.0%
33.3%
300.0%
150.0%
100.0%
60.0%
316.7%
172.7%
90.5%
19. Promotion versus Discounts or
Rebates or Free Goods
Discounts and promotional allowances used repeatedly become ‘part of the
price’, and appeal is lost. Hence, why many automobile companies have
gone to a everyday price versus discounts or rebates
A true incentive provides not only an inducement, but adds excitement,
interest, drama and a sense of urgency.
Discounts often mean ‘giving away’ the product and ‘doing this a new way’
each time develops into a vicious cycle.
Discounts simply cannot generate the appeal and motivation as can
merchandise or travel awards.
A dealer or distributor accustomed to buying on the basis of discounts is
vulnerable to your competitors’ inducements.
Discounts are often passed on to the end-user at a lower retail price.
Discounts can be easily matched by competitors
Non-cash incentives represent minimal investment because the program
funding is accrued basically from increased sales or purchases.
If cash/rebates/free goods/discounts are such a great motivators,
why aren’t they selling more or buying more?
20. Why Incentives Work
Incentive programs can increase performance by up to 44 percent in
teams and 25 percent in individuals, according to “Incentive,
Motivation, & Workplace Performance,” a study by the International
Society of Performance Improvement.
Fewer than one in four American workers is working at full potential;
half of all workers do no more than directly asked; and 75 percent of
employees say they could be more effective in their jobs, according to
research by the Public Agenda Forum.
70 percent of unhappy customers abandon vendors because of poor
service, according to the Forum Corp.
A 5 percent increase in customer retention can increase lifetime profits
from a customer by 75 percent, according to The Loyalty Effect
(Harvard Business School Press), by Frederick Reichheld.
Some 65 percent of executives believe that incentive programs using
travel and merchandise are more memorable than those using cash;
60 percent of executives believe that sources of merchandise and
travel are more helpful in creating an incentive program than are
sources of cash, and 57 percent of executives believe that bonus
payments are often regarded by employees as something they are
due, according to the most recent “Survey of Motivation and Incentive
Applications” by the Incentive Federation.
22. Incentive Strategy
The Target Audience for Incentives should be
the Mid-Range Performers.
This is the biggest audience and can have the
most impact on overall objectives
Usually a company has:
•
•
•
•
•
5-7% Top Performers
80-90% Mid-Range Performers
5-7% Poor Performers (short-term)
Performance will increase at most levels
Variable to market conditions (5-30%+)
23. Sales Contest Length
Based on Sales Cycle
Then double Promotion Period
Flex Period Promotions: Allows
Channel Partners to run the
promotion to meet their schedule
24. Budget Rules of Thumb
Sales: 1-2% if product margins less
than 30% and 2-3% if product
margins greater than 30%
Incremental Sales 4-7% if product
margins less than 30% and 7-10% if
product margins greater than 30%
Trial Offers can range from 5% to
20% of Sales
25. Tracking Sales/Purchases
o Sales Data
Track Sales by Distributor
Sometimes get sales by DSR
o Claim Prize
Claim Form and Attached Invoice/PO
Claim Form and then we verify by
Distributor Sales Data
Send in UPC’s
Payout when Distributor Pays Bills
26. Sales Training Tools
Virtual Role Play: Allen Interactions
Product Quizzes with rewards for
passing
Product Sample Kit/Display
Brand Awareness Advertising:
Counter Mats, Mouse Pads, Wall or
Desk Calendars, Mugs, Pens, Caps,
Shirts
28. Prizes
Amazon over 6 million to select
from, web based, self admin
Hand Pick Prizes/Premiums
Individual Vacation: HMI Miles,
HMI Vacation Packages
Catalogs: Hinda, PFI, Quality
and Certif-A-Gift, Top Brands
RKM Game Cards
SCA On line Game
Pro Licensed Merchandise
Gift Cards
29. Merchandise vs. Cash
Cash satisfies basic needs which does not motivate
behavior.
Cash is the currency of compensation and pricing. Use
cash and it becomes part of an individual’s compensation
package or a customer’s pricing program. Invariably, if
you offer a cash incentive to any audience, internal or
external, it becomes a benchmark against which future
compensation and pricing issues get measured, leading to
a condition known as “program addiction.” Because cash
quickly gets mingled with other compensation or expenses
(in the case of customer cash expenses)
Major Oil Company Study Summary
Non-cash outperformed cash by 46%
Non-cash: 37% increase in product mix
ROI
Cash: -20%
Every $1 invested = an $0.80 return
Non-cash: +31%
Every $1 invested = a $1.31 return
30. Mazda Motor of America
Situation:
Budget
$75 per vehicle
Strategy
Emphasize Value
Goal: Stimulate
B-Series Sales
• 90% of Mazda Dealers
carry at least one other
brand of vehicle
• After introducing many
state of the art vehicles,
light truck sales suffered
Test:
Incentive
Cash vs.
AwardperQ’s
• Two randomly-selected
test groups
• Randomly assigned
cash/non-cash rewards
32. Mazda B-Series Test
Results
Number of Districts Compared to Objective
35
30
25
15
20
15
10
5
21
1
16
1
10
0
Cash
AwardperQs
Over Objective
Even with Objective
Under Objective