Tags
Date
28 January 2016
Author
Delphine Duclos
Table of Contents
Share
In 2016, changes in the business model of distribution networks require a rethinking of the role of incentive plans (motivation programs) within the network. It is now clear that the way brands have always built distributor loyalty has become obsolete.
The best sales professionals in 2016 use advanced analytical tools (CRM, management software) to evaluate the value generated by different partners, in order to identify where behavioral changes offer the greatest growth potential. This involves conducting quantitative analyses to determine who the top performers are, then conducting qualitative studies (surveys) to identify best practices.
Furthermore, since the same incentive program yields different results across different populations, these analytical tools help sales professionals determine how each incentive plan can encourage behaviors within a specific group and accelerate the achievement of desired results.
The data from these tools is then used to offer each group of distributors an incentive choice that rewards behaviors generating the best results. Engaging your partners in a personalized way – instead of using “one-size-fits-all” incentive programs – and emphasizing communication, will strengthen the effectiveness of your sales process and increase your revenue as well as your market share.
The Best Sales Professionals in the Network are not the Only Ones who Need Incentives
A brand’s sales professionals know the importance of recognizing top performers. Relying solely on an incentive program like a “VIP club,” which gathers the best salespeople, to motivate your network, will leave 75% of your distributors’ sales force disengaged. You need to go further than simply rewarding the best. For your performance to reach the next level, motivate the main group.
The true growth driver of a well-structured incentive is the engagement of the entire network. Many companies settle for a club of top performers and fail to unlock the growth potential of the entire organization.
Assuming you have a bell curve of the 10% / 80% / 10% type, where 10% of your distributors represent the “top performers” and the bottom 10% are those who perform the least well, the greatest potential for gain lies in the 80% that make up the core of your distribution network. A 5% growth from the 80% who are your median sellers brings 90% more revenue compared to a 5% growth from your top 10%.
These 80% represent the greatest growth opportunity for several reasons:
- They represent the majority of untapped growth potential
- They are the largest and most diverse group in your network
- They are often motivated to improve their performance
- They are eager for knowledge and learning
- They are open to feedback and advice
- They need to gain experience and skills
- They need to focus on high-value sales activities
Download your free white paper here: Engaging Your Sales Force to Build Loyalty
Identify best practices that already exist in your distribution network and define two or three behaviors that consistently bring a specific benefit. By studying these best practices, the behaviors, and actions of your top sales professionals, you can develop a series of metrics that allow you to better measure the performance of the main group.
Unlike “top performers,” who will achieve goals directly, the median group will apply best practices that have proven effective. Therefore, reward them based on criteria founded on these practices rather than on their results. For example, instead of a challenge based solely on revenue generated, integrate quizzes that verify knowledge acquired during training sessions. These quizzes can award points that will improve the ranking of those who invest themselves in progressing.
Once you have identified these best practices and defined a few behaviors that consistently bring specific benefits:
- Determine the duration of your incentive programs based on the frequency of these behaviors (Studies show it takes 66 days to acquire a behavior)
- Offer incentives to reward these behaviors and encourage performance.
- Clearly explain the goals to be achieved; for behavioral change, participants must understand exactly what is expected of them.
- Track and record both behaviors and results to provide feedback to your sales professionals. Measuring results and providing responses (both individually and by team) will encourage desired behaviors and improve performance.
- Once distributors have identified the behaviors that will lead them to success, unveil your incentive program to them. This should motivate their sales professionals and managers and guide actions throughout the program’s duration.
Incenteev is the modern management and engagement tool for distribution networks. It allows you to track all your network’s metrics live to better manage it and promotes the upward flow of best practices.
Ultimately, it will be your ability to find the motivation levers for the main group of your resellers and to share best practices that will unlock your network’s potential. By creating incentives specifically designed to address this issue, you will be on the right track to increase your market share and achieve your goals. And how do you motivate your entire indirect sales force? Tell us in the comments!
Download your free white paper here: Engaging Your Sales Force to Build Loyalty
Other Articles You might be Interested in:
Tags
Date
28 January 2016
Author
Delphine Duclos