I.Sales incentive programs are designed to stimulate sales team motivation and increase sales. They can be a great energizer for sales people. However, there are a few common missteps companies make when they initiate a sales incentive program. An Incentive Research Foundation (IRF) study found that, despite incentive programs having proven benefits, organizations often fail to realize their full advantage of them because they “lack the knowledge or will to create properly constructed programs that yield desired results” (Clark, R.E., Condly S.J. , Stolovitch). By being on the look-out for these mistakes, you can avoid them from the very beginning, before they become hindrances to otherwise successful motivation strategies. II. Mistake #1: Not Diagnosing the Problem Correctly Before executing an incentive program to address your sales team’s problems, it is crucial to first understand where those problems originate. Successful sales incentives programs involve two key elements in the planning stage: proper diagnosis and specific goal-setting (Deist, S., Emerson, M., Marks, M., 2012). You can more accurately diagnose your team’s issues by examining internal data or consulting an incentives company. Steve Damerow, CEO of Incentive Solutions, says, “All projects must have either a formal or informal evaluation as to R.O.I. We help you research, plan, implement, and measure in order to justify past and future expenditures.” III. Mistake #2: An Inconsistent Plan A well-designed incentive plan will be instantaneous, engaging, easy to understand. Incentive Solutions’ Mobile App add-on, for instance, allows their incentive programs to be accessible anywhere, at any time, using a smart phone. But picture logging in to this incentive program, ready to input a recent sales claim, only to see that administrators have changed which information is to be entered, or how. An unpredictable plan defeats the point of on-the-go ease. IV. Mistake #3: Inflexible plans While incentive plans need consistency, they also need the flexibility to evolve with the changing needs of a sales team or business. The sales goals of two years ago may be too easily attainable now, or a new product may take precedent over an old one. Incentive plans need to be adaptable to new situations. Plans that were successful in one environment can fail in new contexts (Lorimer, S. E., Sinha, P., Zoltners, A.A., 2006). Incentive companies like Incentive Solutions offer flexible plans with multiple optional module and configurable features. Program administrators have complete control over promotions, with the ability to change or create new goals at will. Steve Damerow explains, “We recognize the fact that incentives have a ramp-up period and need re-launching.” V.Mistake #4: Applying the Same Goals and Rewards to Everyone There are three types of salespeople: • low performers (about 25%) • core performers (about 55%) • and high performers (about 20%).

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Subtitle Here
Common Sales Incentive Program Missteps

2. TITLE GOES HERE
Subtitle Here
Click to edit Master title styleSales incentive programs are
designed to stimulate sales
team motivation and increase
sales. They can be a great
energizer for sales people.
However, there are a few
common missteps companies
make when they initiate a
sales incentive program.

3. TITLE GOES HERE
Subtitle Here
Click to edit Master title style
An Incentive Research Foundation (IRF) study found
that, despite incentive programs having proven
benefits, organizations often fail to realize their full
advantage of them because they “lack the
knowledge or will to create properly constructed
programs that yield desired results” (Clark, R.E.,
Condly S.J. , Stolovitch). By being on the look-out for
these mistakes, you can avoid them from the very
beginning, before they become hindrances to
otherwise successful motivation strategies.

4. TITLE GOES HERE
Subtitle Here
Click to edit Master title style
Mistake #1: Not Diagnosing the Problem
Correctly
Before executing an incentive program to address your sales team’s problems, it is
crucial to first understand where those problems originate. Successful sales incentives
programs involve two key elements in the planning stage: proper diagnosis and
specific goal-setting (Deist, S., Emerson, M., Marks, M., 2012).
You can more accurately diagnose your team’s issues by examining internal data or
consulting an incentives company. Steve Damerow, CEO of Incentive Solutions, says,
“All projects must have either a formal or informal evaluation as to R.O.I. We help you
research, plan, implement, and measure in order to justify past and future
expenditures.”
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5. TITLE GOES HERE
Subtitle Here
Click to edit Master title styleA well-designed incentive plan will be
instantaneous, engaging, easy to
understand. Incentive Solutions’ Mobile
App add-on, for instance, allows their
incentive programs to be accessible
anywhere, at any time, using a smart
phone. But picture logging in to this
incentive program, ready to input a recent
sales claim, only to see that
administrators have changed which
information is to be entered, or how. An
unpredictable plan defeats the point of
on-the-go ease.
Mistake #2: An Inconsistent Plan
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Subtitle Here
Click to edit Master title style
While incentive plans need consistency, they
also need the flexibility to evolve with the
changing needs of a sales team or business.
The sales goals of two years ago may be too
easily attainable now, or a new product may
take precedent over an old one. Incentive
plans need to be adaptable to new situations.
Plans that were successful in one
environment can fail in new contexts
(Lorimer, S. E., Sinha, P., Zoltners, A.A.,
2006).
Mistake #3: Inflexible plans
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Subtitle Here
Click to edit Master title styleIncentive companies like
Incentive Solutions offer flexible
plans with multiple optional
module and configurable
features. Program
administrators have complete
control over promotions, with
the ability to change or create
new goals at will. Steve
Damerow explains, “We
recognize the fact that
incentives have a ramp-up
period and need re-launching.”
Visit Us:

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Subtitle Here
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There are three types of salespeople:
•low performers (about 25%)
•core performers (about 55%)
•high performers (about 20%)
Mistake #4: Applying the Same Goals and
Rewards to Everyone
Motivation is different for each type of salesperson. A Salesforce
infographic breaks down this arrangement:
•low performers are motivated by extra training and social pressure
•high performers are motivated by multiple challenges and no-cap
commission opportunities.
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Salespeoples know their own strengths and
limitations better than anyone else. While the
goal of a sales incentives program is to push a
sales team beyond their normal performance
levels, Prograde advises, “Don’t assume you
know what will motivate your sales force.” Talk
with your sales team to come up with agreeable
individual and overarching goals. They may feel
that your goals are unrealistic, or not challenging
enough. Either way, the team will be more
responsive to incentive goals they helped to
establish.
Mistake #5: Implementing a Plan Without Sales
Team Input
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Click to edit Master title styleStudies have shown that sales teams are more motivated by non-cash rewards. People tend to
assign higher values to non-cash rewards than the items’ actual retail value, for various
reasons:
1. Cash rewards are intrinsically linked to salary. Merchandise, event, and travel are separate,
unique rewards that create memories rather than being lumped in with a paycheck.
2. Many have a hard time justifying spending—even when the extra money is hard-earned —
on luxuries like travel and merchandise. Presenting these items or opportunities as gifts
removes the associated guilt.
3. The visibility of travel and merchandise rewards creates “trophy value.” Trophies can be
shown off to peers and become conversation-starters (Lorimer, S. E., Sinha, P., Zoltners, A.A.,
2006).
Mistake #6: Offering Only Cash Rewards
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Click to edit Master title styleYear-end rewards can be big pay-offs, but it’s
best to keep sales teams energized throughout
the year with shorter-term goals, too.
Prograde’s article addressed this as well: “sales
people, by nature, don’t have the stamina to
wait 12 months to achieve their reward. Keep
them focused with routine program
communication updates over a shorter period
of time and they will stay engaged.”
Successful incentive programs allow
administrators to begin and end promotions as
needed. Whether through setting quarterly or
monthly goals, salespeople excel when they
always have a reward to look forward to.
Mistake #7: Promotions That Go on Too Long
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An incentive program can light a fire
under your sales team, but it takes the
right approach and preparation. By
paying attention to your team’s needs
and avoiding the common mistakes
found in this piece, you and your sales
team can share the benefits of an
effective incentive program.
Conclusion
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