The Real Truth About Cash Spiffs To Improve Retail Sales Performance  February, 2010
Paradigm <ul><li>Belief:  Improving retail sales can be achieved by offering a limited-time cash incentive to sales people...
Reality <ul><li>While having some positive impact on sales, the cash-spiff has significant drawbacks: </li></ul><ul><ul><l...
Factors <ul><li>There are four factors that impact how effective a short-term sales initiative is: </li></ul><ul><ul><li>1...
Reality, Part 2 <ul><li>The simple matrix on the following page demonstrates why 75-80% of retail salespeople will not res...
Why Cash-Spiffs Won’t Move 75-80% of Your  Retail Sales Channel (II) Lacks Skills, But Is  Money-Motivated ( Cash Spiffs W...
Four Categories of Salespeople <ul><li>Under-performers:  Lacking in both skills and money-motivation. These are the botto...
What To Do? <ul><li>This group is either  too new  to make an impact,  or needs to turn over . Focus on  effective coachin...
Consider <ul><li>Goal-setting is key for personal development. Self-imposed goals are met. Dictated goals are less effecti...
What’s Next <ul><li>Email me at  [email_address]   </li></ul><ul><li>or visit my blog at  http://ideationz.wordpress.com  ...
Special thanks to Skip Anderson at  http://blog.sellingtoconsumers.com for his thought-provoking insight on the subject of...
Upcoming SlideShare
Loading in …5
×

The Real Truth About Cash Spiffs

2,777 views

Published on

Published in: Business
1 Comment
0 Likes
Statistics
Notes
  • I have already tried a lot of sites to Earn Money Online and got great succeed in only Few of Them. If you really want to Know That Secret Sites Then What are you Waiting For Just Visit Here: http://po.st/googletrade
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total views
2,777
On SlideShare
0
From Embeds
0
Number of Embeds
13
Actions
Shares
0
Downloads
16
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

The Real Truth About Cash Spiffs

  1. 1. The Real Truth About Cash Spiffs To Improve Retail Sales Performance February, 2010
  2. 2. Paradigm <ul><li>Belief: Improving retail sales can be achieved by offering a limited-time cash incentive to sales people (aka, a cash “spiff”). </li></ul><ul><li>This approach has been used for years by retailers as a tool to drive product-specific focus, move excess inventory, clear floor space for new models, or improve profit margins. </li></ul><ul><li>Manufacturers will often use the offer of “more money” to drive added selling-emphasis around their brand of merchandise, in order to achieve a short-term lift in sales. </li></ul>
  3. 3. Reality <ul><li>While having some positive impact on sales, the cash-spiff has significant drawbacks: </li></ul><ul><ul><li>1. The majority of the audience does not generate incremental lift </li></ul></ul><ul><ul><li>2. The lift that is realized may/may not be due to the money that is offered </li></ul></ul><ul><ul><li>3. There are better, more effective ways to achieve higher, more sustainable sales improvement . </li></ul></ul>
  4. 4. Factors <ul><li>There are four factors that impact how effective a short-term sales initiative is: </li></ul><ul><ul><li>1. Does the sales person possess the skills and competencies to perform at a higher level? </li></ul></ul><ul><ul><li>2. Is the sales person truly “money-motivated”? </li></ul></ul><ul><ul><li>3. Does the sales person align with the short-term and intermediate-term objectives of the retailer? </li></ul></ul><ul><ul><li>4. Is there a sufficient measurement system in place to inform and engage the attention of the sales person? </li></ul></ul>
  5. 5. Reality, Part 2 <ul><li>The simple matrix on the following page demonstrates why 75-80% of retail salespeople will not respond to the offer of “more money”, unless/until the remaining three factors (ability, alignment and measurement) are </li></ul><ul><li>adequately addressed. </li></ul>
  6. 6. Why Cash-Spiffs Won’t Move 75-80% of Your Retail Sales Channel (II) Lacks Skills, But Is Money-Motivated ( Cash Spiffs Won’t Work ) (I) Lacks Skills, And Is Not Money- Motivated ( Cash Spiffs Won’t Work ) (IV) Skilled, And Money-Motivated ( Cash May Help, But Only To A Point…Income Expectations Will Top Out, and Performance Will Sub-Optimize ) (III) Skilled, But Not Money-Motivated ( Cash Spiffs Won’t Work )
  7. 7. Four Categories of Salespeople <ul><li>Under-performers: Lacking in both skills and money-motivation. These are the bottom 20% of any sales team. </li></ul><ul><li>Under-achievers: Are motivated by the offer of more $, but lack skills. These are the next 30% of the bell curve. </li></ul><ul><li>Independent Contributors: Possess the skills to deliver more sales, but are not motivated by the offer of more $. </li></ul><ul><li>Top Producers: Know how to lift sales and will deliver more (but only up to their pre-set earnings expectations). </li></ul>
  8. 8. What To Do? <ul><li>This group is either too new to make an impact, or needs to turn over . Focus on effective coaching, training and communication to improve new hires, and on performance-review process to deal with chronic underperformers. </li></ul><ul><li>This group needs training and coaching , along with sound measurement and reinforcement to produce more. Behavioral, incremental change is key. </li></ul><ul><li>This group needs to be communicated with, challenged to set new personal goals , reinforced and aligned with company goals. </li></ul><ul><li>This group needs to be reinforced, supported, and given latitude to actualize . Leveraging tools to engage them emotionally , drive focus and set their own goals to maximize performance. </li></ul>
  9. 9. Consider <ul><li>Goal-setting is key for personal development. Self-imposed goals are met. Dictated goals are less effective. </li></ul><ul><li>Willingness and Ability are critical – Both need to be addressed. </li></ul><ul><li>Communicating a vision, and gaining buy-in is important. Everyone must have an understood, individual role in success. </li></ul><ul><li>What gets measured gets done. Track key results and post or report continually. </li></ul>
  10. 10. What’s Next <ul><li>Email me at [email_address] </li></ul><ul><li>or visit my blog at http://ideationz.wordpress.com to open a dialog around what your company needs to get done, </li></ul><ul><li>and how best to get after it. </li></ul><ul><li>It’s all about behavior change, and money just won’t buy that. </li></ul>
  11. 11. Special thanks to Skip Anderson at http://blog.sellingtoconsumers.com for his thought-provoking insight on the subject of getting more out of your retail salespeople.

×