SlideShare a Scribd company logo
Captive Sales Force
Sales Contests
&
Sales Recognition
Presentation
Great Ideas Come From Great Clients
Captive Sales Force Objectives
 New Accounts
 Quota Attainment
 Sales Clubs
 Product Launch
 Training
 Steps to the Sale
 Recognition
Monthly Rewards for Quota and
Annual Trip Club Rewards
100% Club
Trip
Promotion
Points Reward Program
•Best Buy, buy.com
•Travel, Hotel, Air
•Entertainment
•Events
•For Men and Woman
Demo Website:
https://taz.valuesme.com
Username: salesdemo
Password: demo
New Account Recognition
New Account Recognition
Sales and Service/Support
Quarterly Sales Quota
Stretch Goal Incentive
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!
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
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)
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
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
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
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%
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?
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.
Incentive Strategy
Performance with Incentive (Move the Bar)
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%+)
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
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
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
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
Prizes

Award Points are
redeemed for the
top-quality, namebrand items
featured in the
Awards Selection.
.
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
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
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
Mazda B-Series Truck
Example
15.65

16
14
12
10
8

% Over Objective

6
4
2
0

2.13
Cash Districts

AwardperQs
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
Thank You

More Related Content

What's hot

Sales Excellence
Sales ExcellenceSales Excellence
Sales Excellence
Aristoteles Kabarganos
 
Selling Smart: Transactional Analysis and the Psychology of Sales
Selling Smart: Transactional Analysis and the Psychology of SalesSelling Smart: Transactional Analysis and the Psychology of Sales
Selling Smart: Transactional Analysis and the Psychology of SalesAnnArborSPARK
 
Go-To-Market Framework
Go-To-Market FrameworkGo-To-Market Framework
Go-To-Market Framework
Mark Officer
 
Fitbit Go-To Market Plan
Fitbit Go-To Market PlanFitbit Go-To Market Plan
Fitbit Go-To Market Plan
pranaysadarangani
 
B2B Lead Generation - PPT
B2B Lead Generation - PPTB2B Lead Generation - PPT
B2B Lead Generation - PPT
Mohit Pachauri
 
Sales Performance Training
Sales Performance TrainingSales Performance Training
Sales Performance Training
David Goodman
 
Getting Started With Marketing Automation
Getting Started With Marketing AutomationGetting Started With Marketing Automation
Getting Started With Marketing Automation
Centerline Digital
 
Product Launch Checklist Go To Market Roll Out Marketing Plan PowerPoint Pres...
Product Launch Checklist Go To Market Roll Out Marketing Plan PowerPoint Pres...Product Launch Checklist Go To Market Roll Out Marketing Plan PowerPoint Pres...
Product Launch Checklist Go To Market Roll Out Marketing Plan PowerPoint Pres...
SlideTeam
 
Sales Enablement Plan Playbook
Sales Enablement Plan PlaybookSales Enablement Plan Playbook
Sales Enablement Plan Playbook
Demand Metric
 
Sales Planning - Sales Strategy Template
Sales Planning - Sales Strategy TemplateSales Planning - Sales Strategy Template
Sales Planning - Sales Strategy Template
Four Quadrant LLC
 
Practical guide to sales plan
Practical guide to sales planPractical guide to sales plan
Practical guide to sales plan
Rishabh Bharat
 
Channel Partner Presentation
Channel Partner PresentationChannel Partner Presentation
Channel Partner Presentation
jbratton22
 
Loyalty program
Loyalty program   Loyalty program
Loyalty program
Tapan Gupta
 
How To Evolve Your B2B Go-to-Market Strategy With Account-Based Experience
How To Evolve Your B2B Go-to-Market Strategy With Account-Based ExperienceHow To Evolve Your B2B Go-to-Market Strategy With Account-Based Experience
How To Evolve Your B2B Go-to-Market Strategy With Account-Based Experience
Demandbase
 
SiriusDecisions Sales Enablement Market and Trends Survey Revealed
SiriusDecisions Sales Enablement Market and Trends Survey RevealedSiriusDecisions Sales Enablement Market and Trends Survey Revealed
SiriusDecisions Sales Enablement Market and Trends Survey Revealed
SAVO
 
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
SlideTeam
 
Sales strategy workshop 2013 slideshare
Sales strategy workshop 2013 slideshareSales strategy workshop 2013 slideshare
Sales strategy workshop 2013 slideshare
Antwerp Management School
 
Go-to-market Framework
Go-to-market FrameworkGo-to-market Framework
Go-to-market Framework
Demand Metric
 
Building An Effective Sales Compensation Framework
Building An Effective Sales Compensation FrameworkBuilding An Effective Sales Compensation Framework
Building An Effective Sales Compensation FrameworkPaola Gheis
 
5 Go-to-Market Strategies for B2B SaaS, FinTech, and IaaS [Webinar Recording]
5 Go-to-Market Strategies for B2B SaaS, FinTech, and IaaS [Webinar Recording]5 Go-to-Market Strategies for B2B SaaS, FinTech, and IaaS [Webinar Recording]
5 Go-to-Market Strategies for B2B SaaS, FinTech, and IaaS [Webinar Recording]
SP Home Run Inc.
 

What's hot (20)

Sales Excellence
Sales ExcellenceSales Excellence
Sales Excellence
 
Selling Smart: Transactional Analysis and the Psychology of Sales
Selling Smart: Transactional Analysis and the Psychology of SalesSelling Smart: Transactional Analysis and the Psychology of Sales
Selling Smart: Transactional Analysis and the Psychology of Sales
 
Go-To-Market Framework
Go-To-Market FrameworkGo-To-Market Framework
Go-To-Market Framework
 
Fitbit Go-To Market Plan
Fitbit Go-To Market PlanFitbit Go-To Market Plan
Fitbit Go-To Market Plan
 
B2B Lead Generation - PPT
B2B Lead Generation - PPTB2B Lead Generation - PPT
B2B Lead Generation - PPT
 
Sales Performance Training
Sales Performance TrainingSales Performance Training
Sales Performance Training
 
Getting Started With Marketing Automation
Getting Started With Marketing AutomationGetting Started With Marketing Automation
Getting Started With Marketing Automation
 
Product Launch Checklist Go To Market Roll Out Marketing Plan PowerPoint Pres...
Product Launch Checklist Go To Market Roll Out Marketing Plan PowerPoint Pres...Product Launch Checklist Go To Market Roll Out Marketing Plan PowerPoint Pres...
Product Launch Checklist Go To Market Roll Out Marketing Plan PowerPoint Pres...
 
Sales Enablement Plan Playbook
Sales Enablement Plan PlaybookSales Enablement Plan Playbook
Sales Enablement Plan Playbook
 
Sales Planning - Sales Strategy Template
Sales Planning - Sales Strategy TemplateSales Planning - Sales Strategy Template
Sales Planning - Sales Strategy Template
 
Practical guide to sales plan
Practical guide to sales planPractical guide to sales plan
Practical guide to sales plan
 
Channel Partner Presentation
Channel Partner PresentationChannel Partner Presentation
Channel Partner Presentation
 
Loyalty program
Loyalty program   Loyalty program
Loyalty program
 
How To Evolve Your B2B Go-to-Market Strategy With Account-Based Experience
How To Evolve Your B2B Go-to-Market Strategy With Account-Based ExperienceHow To Evolve Your B2B Go-to-Market Strategy With Account-Based Experience
How To Evolve Your B2B Go-to-Market Strategy With Account-Based Experience
 
SiriusDecisions Sales Enablement Market and Trends Survey Revealed
SiriusDecisions Sales Enablement Market and Trends Survey RevealedSiriusDecisions Sales Enablement Market and Trends Survey Revealed
SiriusDecisions Sales Enablement Market and Trends Survey Revealed
 
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
Marketing Go To Market Roll Out Plan New Product Launch PowerPoint Presentati...
 
Sales strategy workshop 2013 slideshare
Sales strategy workshop 2013 slideshareSales strategy workshop 2013 slideshare
Sales strategy workshop 2013 slideshare
 
Go-to-market Framework
Go-to-market FrameworkGo-to-market Framework
Go-to-market Framework
 
Building An Effective Sales Compensation Framework
Building An Effective Sales Compensation FrameworkBuilding An Effective Sales Compensation Framework
Building An Effective Sales Compensation Framework
 
5 Go-to-Market Strategies for B2B SaaS, FinTech, and IaaS [Webinar Recording]
5 Go-to-Market Strategies for B2B SaaS, FinTech, and IaaS [Webinar Recording]5 Go-to-Market Strategies for B2B SaaS, FinTech, and IaaS [Webinar Recording]
5 Go-to-Market Strategies for B2B SaaS, FinTech, and IaaS [Webinar Recording]
 

Viewers also liked

Ch 17 designing and integrating marketing communications14e
Ch 17 designing and integrating marketing communications14eCh 17 designing and integrating marketing communications14e
Ch 17 designing and integrating marketing communications14e
Nazmul Hasan Mahmud
 
The Strategic Sales Incentive Plan Audit: Put Away Your Calculator
The Strategic Sales Incentive Plan Audit: Put Away Your CalculatorThe Strategic Sales Incentive Plan Audit: Put Away Your Calculator
The Strategic Sales Incentive Plan Audit: Put Away Your Calculator
Callidus Software
 
Training and development of the employees in Bajaj auto
Training and development of the employees in Bajaj autoTraining and development of the employees in Bajaj auto
Training and development of the employees in Bajaj auto
Najeebhemat Malikzia
 
Incentive
IncentiveIncentive
Incentive
Jay Visavadiya
 
Kotler chapter 15
Kotler  chapter 15Kotler  chapter 15
Kotler chapter 15
9209407
 

Viewers also liked (7)

Ch 17 designing and integrating marketing communications14e
Ch 17 designing and integrating marketing communications14eCh 17 designing and integrating marketing communications14e
Ch 17 designing and integrating marketing communications14e
 
Sales incentive plan review process
Sales incentive plan review processSales incentive plan review process
Sales incentive plan review process
 
Incentives plans
Incentives plansIncentives plans
Incentives plans
 
The Strategic Sales Incentive Plan Audit: Put Away Your Calculator
The Strategic Sales Incentive Plan Audit: Put Away Your CalculatorThe Strategic Sales Incentive Plan Audit: Put Away Your Calculator
The Strategic Sales Incentive Plan Audit: Put Away Your Calculator
 
Training and development of the employees in Bajaj auto
Training and development of the employees in Bajaj autoTraining and development of the employees in Bajaj auto
Training and development of the employees in Bajaj auto
 
Incentive
IncentiveIncentive
Incentive
 
Kotler chapter 15
Kotler  chapter 15Kotler  chapter 15
Kotler chapter 15
 

Similar to Sales Incentive program examples

Manufactureranddistributorloyalty
ManufactureranddistributorloyaltyManufactureranddistributorloyalty
Manufactureranddistributorloyalty
Derek Miller
 
Customer Referral Program
Customer Referral ProgramCustomer Referral Program
Customer Referral Program
David Thompson
 
Employee Rewards Programs: The Formula for Successful Rewards
Employee Rewards Programs: The Formula for Successful RewardsEmployee Rewards Programs: The Formula for Successful Rewards
Employee Rewards Programs: The Formula for Successful Rewards
Tom Daly
 
Get customers, productive employees & happy clientele
Get customers, productive employees & happy clientele Get customers, productive employees & happy clientele
Get customers, productive employees & happy clientele
Sunrise Promotions, Inc.
 
Accu agency management tips
Accu agency management tipsAccu agency management tips
Accu agency management tipsEddie Emmett
 
Compensation
CompensationCompensation
Compensationamitgurus
 
Compensation through easy-commission
Compensation through easy-commissionCompensation through easy-commission
Compensation through easy-commission
easycommission
 
Inside Sales Compensation & Incentives Best Practices
Inside Sales Compensation & Incentives Best PracticesInside Sales Compensation & Incentives Best Practices
Inside Sales Compensation & Incentives Best Practices
Heinz Marketing Inc
 
Incentive Survey Results
Incentive Survey ResultsIncentive Survey Results
Incentive Survey Results
rcowen
 
IC Group Capabilities
IC Group CapabilitiesIC Group Capabilities
IC Group Capabilities
danconroy9600
 
Affiliate Profit: Are you losing money?
Affiliate Profit: Are you losing money?Affiliate Profit: Are you losing money?
Affiliate Profit: Are you losing money?
sarlycg
 
Affiliate Profit: Are you losing money?
Affiliate Profit: Are you losing money?Affiliate Profit: Are you losing money?
Affiliate Profit: Are you losing money?
ynotski62
 
Customer loyalty programme Reliance Retail Limited
Customer loyalty programme Reliance Retail LimitedCustomer loyalty programme Reliance Retail Limited
Customer loyalty programme Reliance Retail LimitedHITESH BHARTI
 
Success Strategies For Indirect And National Retail
Success Strategies For Indirect And National RetailSuccess Strategies For Indirect And National Retail
Success Strategies For Indirect And National Retail
Alan Hurd
 
Meridian Media Traffic Ticket Presentation
Meridian Media Traffic Ticket PresentationMeridian Media Traffic Ticket Presentation
Meridian Media Traffic Ticket Presentation
heidifenskejohnson
 
Money for Nothing, Clicks for Free - An Exploration into Affiliate Marketing
Money for Nothing, Clicks for Free - An Exploration into Affiliate MarketingMoney for Nothing, Clicks for Free - An Exploration into Affiliate Marketing
Money for Nothing, Clicks for Free - An Exploration into Affiliate Marketing
adamboettiger
 
How to launch a customer loyalty program that boosts your bottom line
How to launch a customer loyalty program that boosts your bottom lineHow to launch a customer loyalty program that boosts your bottom line
How to launch a customer loyalty program that boosts your bottom line
Darren DeMatas, MBA
 
Customer Loyalty program trends 2021
Customer Loyalty program trends 2021Customer Loyalty program trends 2021
Customer Loyalty program trends 2021
Kushal Shah
 

Similar to Sales Incentive program examples (20)

Manufactureranddistributorloyalty
ManufactureranddistributorloyaltyManufactureranddistributorloyalty
Manufactureranddistributorloyalty
 
Customer Referral Program
Customer Referral ProgramCustomer Referral Program
Customer Referral Program
 
Employee Rewards Programs: The Formula for Successful Rewards
Employee Rewards Programs: The Formula for Successful RewardsEmployee Rewards Programs: The Formula for Successful Rewards
Employee Rewards Programs: The Formula for Successful Rewards
 
SPI Agency Presentation
SPI Agency PresentationSPI Agency Presentation
SPI Agency Presentation
 
Get customers, productive employees & happy clientele
Get customers, productive employees & happy clientele Get customers, productive employees & happy clientele
Get customers, productive employees & happy clientele
 
Accu agency management tips
Accu agency management tipsAccu agency management tips
Accu agency management tips
 
Compensation
CompensationCompensation
Compensation
 
Compensation through easy-commission
Compensation through easy-commissionCompensation through easy-commission
Compensation through easy-commission
 
Inside Sales Compensation & Incentives Best Practices
Inside Sales Compensation & Incentives Best PracticesInside Sales Compensation & Incentives Best Practices
Inside Sales Compensation & Incentives Best Practices
 
Incentive Survey Results
Incentive Survey ResultsIncentive Survey Results
Incentive Survey Results
 
P rao hdfc
P rao hdfcP rao hdfc
P rao hdfc
 
IC Group Capabilities
IC Group CapabilitiesIC Group Capabilities
IC Group Capabilities
 
Affiliate Profit: Are you losing money?
Affiliate Profit: Are you losing money?Affiliate Profit: Are you losing money?
Affiliate Profit: Are you losing money?
 
Affiliate Profit: Are you losing money?
Affiliate Profit: Are you losing money?Affiliate Profit: Are you losing money?
Affiliate Profit: Are you losing money?
 
Customer loyalty programme Reliance Retail Limited
Customer loyalty programme Reliance Retail LimitedCustomer loyalty programme Reliance Retail Limited
Customer loyalty programme Reliance Retail Limited
 
Success Strategies For Indirect And National Retail
Success Strategies For Indirect And National RetailSuccess Strategies For Indirect And National Retail
Success Strategies For Indirect And National Retail
 
Meridian Media Traffic Ticket Presentation
Meridian Media Traffic Ticket PresentationMeridian Media Traffic Ticket Presentation
Meridian Media Traffic Ticket Presentation
 
Money for Nothing, Clicks for Free - An Exploration into Affiliate Marketing
Money for Nothing, Clicks for Free - An Exploration into Affiliate MarketingMoney for Nothing, Clicks for Free - An Exploration into Affiliate Marketing
Money for Nothing, Clicks for Free - An Exploration into Affiliate Marketing
 
How to launch a customer loyalty program that boosts your bottom line
How to launch a customer loyalty program that boosts your bottom lineHow to launch a customer loyalty program that boosts your bottom line
How to launch a customer loyalty program that boosts your bottom line
 
Customer Loyalty program trends 2021
Customer Loyalty program trends 2021Customer Loyalty program trends 2021
Customer Loyalty program trends 2021
 

More from Derek Miller

Automated referral program presentation
Automated referral program presentationAutomated referral program presentation
Automated referral program presentation
Derek Miller
 
Retail Banks and Credit Union promotions designed to drive traffic
Retail Banks and Credit Union promotions designed to drive trafficRetail Banks and Credit Union promotions designed to drive traffic
Retail Banks and Credit Union promotions designed to drive traffic
Derek Miller
 
B2B Dimensional Mail
B2B Dimensional MailB2B Dimensional Mail
B2B Dimensional Mail
Derek Miller
 
Why incentive programs_endure_recessions
Why incentive programs_endure_recessionsWhy incentive programs_endure_recessions
Why incentive programs_endure_recessions
Derek Miller
 
Truck mileage savings program
Truck mileage savings programTruck mileage savings program
Truck mileage savings program
Derek Miller
 
Our Community Marketing Program Ppt 10 7 11
Our Community Marketing Program   Ppt 10 7 11Our Community Marketing Program   Ppt 10 7 11
Our Community Marketing Program Ppt 10 7 11
Derek Miller
 
Grow your business with referrals
Grow your business with referralsGrow your business with referrals
Grow your business with referrals
Derek Miller
 
Salons Tanning
Salons TanningSalons Tanning
Salons Tanning
Derek Miller
 
Bank Ideas
Bank IdeasBank Ideas
Bank Ideas
Derek Miller
 
Retailpromotions
RetailpromotionsRetailpromotions
Retailpromotions
Derek Miller
 
Purl Powerpoint Proprinters
Purl Powerpoint ProprintersPurl Powerpoint Proprinters
Purl Powerpoint Proprinters
Derek Miller
 
Clientversionvariableratio
ClientversionvariableratioClientversionvariableratio
Clientversionvariableratio
Derek Miller
 
Pro Printersonlinegames.
Pro Printersonlinegames.Pro Printersonlinegames.
Pro Printersonlinegames.
Derek Miller
 

More from Derek Miller (13)

Automated referral program presentation
Automated referral program presentationAutomated referral program presentation
Automated referral program presentation
 
Retail Banks and Credit Union promotions designed to drive traffic
Retail Banks and Credit Union promotions designed to drive trafficRetail Banks and Credit Union promotions designed to drive traffic
Retail Banks and Credit Union promotions designed to drive traffic
 
B2B Dimensional Mail
B2B Dimensional MailB2B Dimensional Mail
B2B Dimensional Mail
 
Why incentive programs_endure_recessions
Why incentive programs_endure_recessionsWhy incentive programs_endure_recessions
Why incentive programs_endure_recessions
 
Truck mileage savings program
Truck mileage savings programTruck mileage savings program
Truck mileage savings program
 
Our Community Marketing Program Ppt 10 7 11
Our Community Marketing Program   Ppt 10 7 11Our Community Marketing Program   Ppt 10 7 11
Our Community Marketing Program Ppt 10 7 11
 
Grow your business with referrals
Grow your business with referralsGrow your business with referrals
Grow your business with referrals
 
Salons Tanning
Salons TanningSalons Tanning
Salons Tanning
 
Bank Ideas
Bank IdeasBank Ideas
Bank Ideas
 
Retailpromotions
RetailpromotionsRetailpromotions
Retailpromotions
 
Purl Powerpoint Proprinters
Purl Powerpoint ProprintersPurl Powerpoint Proprinters
Purl Powerpoint Proprinters
 
Clientversionvariableratio
ClientversionvariableratioClientversionvariableratio
Clientversionvariableratio
 
Pro Printersonlinegames.
Pro Printersonlinegames.Pro Printersonlinegames.
Pro Printersonlinegames.
 

Recently uploaded

Digital Marketing Trends - Experts Insights on How
Digital Marketing Trends - Experts Insights on HowDigital Marketing Trends - Experts Insights on How
Generative AI - Unleash Creative Opportunity - Peter Weltman
Generative AI - Unleash Creative Opportunity - Peter WeltmanGenerative AI - Unleash Creative Opportunity - Peter Weltman
Generative AI - Unleash Creative Opportunity - Peter Weltman
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
DeepakTripathi733493
 
How to Run Landing Page Tests On and Off Paid Social Platforms
How to Run Landing Page Tests On and Off Paid Social PlatformsHow to Run Landing Page Tests On and Off Paid Social Platforms
How to Run Landing Page Tests On and Off Paid Social Platforms
VWO
 
10 Videos Any Business Can Make Right Now! - Shelly Nathan
10 Videos Any Business Can Make Right Now! - Shelly Nathan10 Videos Any Business Can Make Right Now! - Shelly Nathan
10 Videos Any Business Can Make Right Now! - Shelly Nathan
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Monthly Social Media News Update May 2024
Monthly Social Media News Update May 2024Monthly Social Media News Update May 2024
Monthly Social Media News Update May 2024
Andy Lambert
 
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge
Digital Marketing Trends - Experts Insights on How to Gain a Competitive EdgeDigital Marketing Trends - Experts Insights on How to Gain a Competitive Edge
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel BussiusYour Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
ThinkNow 2024 Consumer Financial Wellness Report
ThinkNow 2024 Consumer Financial Wellness ReportThinkNow 2024 Consumer Financial Wellness Report
ThinkNow 2024 Consumer Financial Wellness Report
ThinkNow
 
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel LeminTurn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Unlocking Everyday Narratives: The Power of Storytelling in Marketing - Chad...
Unlocking Everyday Narratives: The Power of Storytelling in Marketing  - Chad...Unlocking Everyday Narratives: The Power of Storytelling in Marketing  - Chad...
Unlocking Everyday Narratives: The Power of Storytelling in Marketing - Chad...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
15 ideas and frameworks on the art of storytelling
15 ideas and frameworks on the art of storytelling15 ideas and frameworks on the art of storytelling
15 ideas and frameworks on the art of storytelling
Aatir Abdul Rauf
 
De-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah GrapDe-risk Your Digital Evolution - Hannah Grap
My Personal Brand Exploration by Mariano
My Personal Brand Exploration by MarianoMy Personal Brand Exploration by Mariano
My Personal Brand Exploration by Mariano
marianooscos
 
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROAI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
VWO
 
Winning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis YuWinning local SEO in the Age of AI - Dennis Yu
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysMastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Search Engine Journal
 
Is AI-Generated Content the Future of Content Creation?
Is AI-Generated Content the Future of Content Creation?Is AI-Generated Content the Future of Content Creation?
Is AI-Generated Content the Future of Content Creation?
Cut-the-SaaS
 
SMM Cheap - No. 1 SMM panel in the world
SMM Cheap - No. 1 SMM panel in the worldSMM Cheap - No. 1 SMM panel in the world
SMM Cheap - No. 1 SMM panel in the world
smmpanel567
 

Recently uploaded (20)

Digital Marketing Trends - Experts Insights on How
Digital Marketing Trends - Experts Insights on HowDigital Marketing Trends - Experts Insights on How
Digital Marketing Trends - Experts Insights on How
 
Generative AI - Unleash Creative Opportunity - Peter Weltman
Generative AI - Unleash Creative Opportunity - Peter WeltmanGenerative AI - Unleash Creative Opportunity - Peter Weltman
Generative AI - Unleash Creative Opportunity - Peter Weltman
 
Metaverse Marketing in the Generation of the Internet - Eugene Capon
Metaverse Marketing in the Generation of the Internet - Eugene CaponMetaverse Marketing in the Generation of the Internet - Eugene Capon
Metaverse Marketing in the Generation of the Internet - Eugene Capon
 
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
 
How to Run Landing Page Tests On and Off Paid Social Platforms
How to Run Landing Page Tests On and Off Paid Social PlatformsHow to Run Landing Page Tests On and Off Paid Social Platforms
How to Run Landing Page Tests On and Off Paid Social Platforms
 
10 Videos Any Business Can Make Right Now! - Shelly Nathan
10 Videos Any Business Can Make Right Now! - Shelly Nathan10 Videos Any Business Can Make Right Now! - Shelly Nathan
10 Videos Any Business Can Make Right Now! - Shelly Nathan
 
Monthly Social Media News Update May 2024
Monthly Social Media News Update May 2024Monthly Social Media News Update May 2024
Monthly Social Media News Update May 2024
 
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge
Digital Marketing Trends - Experts Insights on How to Gain a Competitive EdgeDigital Marketing Trends - Experts Insights on How to Gain a Competitive Edge
Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge
 
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel BussiusYour Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
 
ThinkNow 2024 Consumer Financial Wellness Report
ThinkNow 2024 Consumer Financial Wellness ReportThinkNow 2024 Consumer Financial Wellness Report
ThinkNow 2024 Consumer Financial Wellness Report
 
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel LeminTurn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
 
Unlocking Everyday Narratives: The Power of Storytelling in Marketing - Chad...
Unlocking Everyday Narratives: The Power of Storytelling in Marketing  - Chad...Unlocking Everyday Narratives: The Power of Storytelling in Marketing  - Chad...
Unlocking Everyday Narratives: The Power of Storytelling in Marketing - Chad...
 
15 ideas and frameworks on the art of storytelling
15 ideas and frameworks on the art of storytelling15 ideas and frameworks on the art of storytelling
15 ideas and frameworks on the art of storytelling
 
De-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah GrapDe-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah Grap
 
My Personal Brand Exploration by Mariano
My Personal Brand Exploration by MarianoMy Personal Brand Exploration by Mariano
My Personal Brand Exploration by Mariano
 
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROAI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
 
Winning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis YuWinning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis Yu
 
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysMastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
 
Is AI-Generated Content the Future of Content Creation?
Is AI-Generated Content the Future of Content Creation?Is AI-Generated Content the Future of Content Creation?
Is AI-Generated Content the Future of Content Creation?
 
SMM Cheap - No. 1 SMM panel in the world
SMM Cheap - No. 1 SMM panel in the worldSMM Cheap - No. 1 SMM panel in the world
SMM Cheap - No. 1 SMM panel in the world
 

Sales Incentive program examples

  • 1. Captive Sales Force Sales Contests & Sales Recognition Presentation
  • 2. Great Ideas Come From Great Clients
  • 3. Captive Sales Force Objectives  New Accounts  Quota Attainment  Sales Clubs  Product Launch  Training  Steps to the Sale  Recognition
  • 4. Monthly Rewards for Quota and Annual Trip Club Rewards
  • 6. Points Reward Program •Best Buy, buy.com •Travel, Hotel, Air •Entertainment •Events •For Men and Woman Demo Website: https://taz.valuesme.com Username: salesdemo Password: demo
  • 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.
  • 21. Incentive Strategy Performance with Incentive (Move the Bar)
  • 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
  • 27. Prizes Award Points are redeemed for the top-quality, namebrand items featured in the Awards Selection. .
  • 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
  • 31. Mazda B-Series Truck Example 15.65 16 14 12 10 8 % Over Objective 6 4 2 0 2.13 Cash Districts AwardperQs
  • 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