The processes that underpin sales incentive program management have long been fairly stagnant, as brands have relied heavily on paper-based records to track activity in the channel. This meant significant delays between when sales were made and when brands could start responding to trends across the channel, making it extremely difficult to optimize and improve SPIFF initiatives. Modern channel management tools change this by gathering data in digital formats, allowing for almost real-time communication between brands and indirect sales representatives. Building stronger relationships in the channel Getting more and better information from the channel becomes invaluable when it comes to SPIFF programs. A sales incentive initiative is able to derive value only when channel partners are engaged, and fostering more connectivity throughout the channel fuels engagement. Three ways to use a channel management solution to build stronger relationships across the channel are: 1.
Make incentive processes easy If one brand allows sales agents to log a sale using their smartphone and have that sale automatically trigger a SPIFF payout if program conditions are met, you can probably expect a positive response. Conversely, if another brand requires paper documentation with specific forms to fill out, mail or fax, there’s a good chance sales associate will be less likely to file everything in a timely fashion or even bother to engage with the brand and its incentive program. In the end, it’s whichever one can get the payout to sales partners most effectively, which is the digital methodology. It is difficult to get motivated to work hard for a payout that will be processed over the course of weeks and not arrive for a couple of months at the earliest. It is much easier to find energy to work for an incentive payout that will arrive quickly. “Sales incentives must be easy enough to access to make the effort worthwhile.” Incentive programs can motivate salespeople in the channel to go along with what brands want, but the benefits must be easy enough to access to make the effort worthwhile.
Using digital tools to simplify and streamline incentive filing and payout processes can play a key role in keeping channel partners happy. Streamline training How do you measure the success of channel training programs? Getting accurate product information to sales partners isn’t enough. Brands must make that information digestible, provide answers to questions that consumers are likely to ask and ensure key specifications are easy to find at any given time. This makes training essential, but figuring out the best way to do it is possible only when brands are aware of the impact training has on sales. Channel management software platforms allow brands to:. Assess the relationship between when brands release training materials and how timing impacts sales.
For example, you can learn if getting materials out well before a campaign is helpful, or if your partners tend to dial in only when the program really gets going. Get feedback on which types of training content get the best results – even to the point of experimenting with different types of content and comparing sales data in periods shortly after the materials are released. Make determinations about how much and what type of training will most predictably drive the desired sales activity. Building strong relationships across the sales channel often depends on a blend of accessibility for users and visibility into how sales partners respond. Channel management solutions provide options in both of those areas.
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Create a positive end-to-end experience Fostering engagement within the sales channel comes down to more than just money. Sales workers expecting endless incremental increases to SPIFF payouts for selling your products may eventually reach a point where money isn’t enough to keep them attached to your brand – they’ll just go with whomever has the most interesting offer, struggling to say focused on your brand if a product falters even slightly in the marketplace.
Building a stronger relationship with sales partners, however, can create a stronger bond. Achieving this hinges on showing you value their time, energy and work. Making incentive processes easy is a first step here, but it is vital to provide a positive end-to-end experience for sales partners to strengthen the relationship. Rewarding somebody is powerful. Connecting with a person, however, can create a strong partnership. Improving day-to-day interactions between sales workers and brands can build relationships. If training isn’t helping, how does a sales worker reach out?
If products aren’t selling, what options do sales workers have for support? The ability to respond to activity in the channel quickly is possible when sales workers are able to reach out with ease. “Making information more accessible can set the foundation for better relationships.” A holistic channel management program will support sales engagement at all times. Modern channel marketing tools provide the visibility into processes and sales data that brands need to optimize operations around their channel partners. Take advantage of the information at your fingertips Each of these points emphasizes the growing role data can play in managing the channel. Making information more accessible can set the foundation for better relationships.
Access to sales data can make it easier to identify how training impacts performance to optimize strategies. Building a positive end-to-end experience is reliant on being responsive to the channel, which is possible when data is gathered in a timely fashion. Information is a catalyst for innovation in channel marketing and engagement programs, and data lets brands optimize their SPIFF programs in light of real-world performance. Leading channel management solutions are evolving in response, and 360insights offers a SPIFF module within its cloud-based channel management platform that can serve as a hub for all of your sales incentive program needs. Want to know more? Check out our free.
Samsung Innovation Spiffs
No notes for slide. SPIFF.
Sales Incentives. Best practices and case studies. This term has been around for awhile. So has the idea of rewarding sales people for their performance. Everybody always comments on the missing second “F”.
Typical spiff program flow. Salesman sells Ginsu knives to restaurant.
Restaurant buys knives and gives money to Ginsu. Ginsu receives money and pays salesman. Salesman receives regular commission for sale.
Salesman receives added incentive pay in the form of spiff rewards. In this example the spiff reward is cash that is loaded onto a Vis gift card for the salesman to spend at his discretion. Why this works. The spiff reward gives the sales person something tangible to use as a goal. Their basic commission might be enough of an incentive for them to reach their quota. But when they have a separate account that is earning extra money for whatever they want to use it on, now those extra sales don’t just mean that they are beating their quota, they mean they are earning a jet ski or a trip to Hawaii or golf vacation or whatever. The spiff makes their fantasy a reality and gives them a way of achieving it.
They are no longer selling a product, they’re building a boat. They’re no longer generating leads, they’re adding to their set of golf clubs. Huntington Homes/Highland Homes is a Texas based home builder that shares one thing in common with other builders: incentive programs for realtors. Numantra helped Huntington Homes/Highland Homes introduce their latest incentive program with this over-sized brochure. The piece touts the big bonuses while it reinforces their Texas point of difference by reminding the realtor that “everything’s bigger in Texas. This is the front and back of an accordion fold brochure. The spiff program here involved a rechargeable credit card that would automatically receive cash bonuses when sales were completed.
These bonuses were in addition to the standard #% commission and basically meant that a realtor could get paid as much as 5% commission on sales. This spiff program we developed for Hoya was designed to eye care professionals working at dispensaries recommend and sell more HOYA lenses.
The program goes something like this: Sell qualifying HOYALUX ® progressive lens designs to earn something green — add HOYA anti-reflective coatings, Transitions ® lenses or NuPolar ® polarized lenses for even more green. In addition to great prizes, monthly winners will receive cold hard cash.
Plus, two lucky grand prize drawing winners will walk away with the keys to something even greener — a Lexus ® GS 450h Hybrid two-year lease. Remember, the more you sell, the more green you can win. Click on the website image above (center picture) or go to to review the site that supported the program. The next spiff prlogram for HOYA was like the previous one.
Crack real life cam leora. This time the grand prize was a trip to Greece. This time, we added more prizes and with a grand prize trip to Greece, we were able to make the prize pool more thematic. Check it out by clicking on the website image above (middle) or visit the following link:. To increase program participation, we teased the next promotion with print ads that ran in the trade publications. The print ads lead to a landing page where eye care professionals could sign up to be informed of the prize destination by email. They were also invited to guess at the destination for a chance to win a free gift. Finally the destination was revealed.
Visit the website by clicking the image above or visiting. More thematic prizes were added to this promotion than before. And a virtual itinerary was created to lead eye care professionals around the various destinations of the grand prize. In addition to the stickers they can earn for selling HOYA product, they were also invited to take weekly quizzes that helped to sharpen their product knowledge. Correct answers on the quizzes were also rewarded. Product information was important to this program so in addition to the quizzes, every page had a revolving series of questions incorporated into the upper right corner. Quarterly sweepstakes keep sales people interested.
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A new promotion is announced each quarter. An email is sent each month. One moth, the email announces the promotion. The next month, the email provides a sales tip, announces the winner of the last promotion and announces the next upcoming promotion. And the third email invites sales tips from the salesforce.
And then the cycle is repeated. When too many points have been accumlated but not redeemed, we launch a point burner.
It’s a promotion designed to encourage salespeople to spend their points. In this case, they can spend their points for a chance to win cash instantly.
Dentzone private labels their service so we also provide versions of the spiff porgram that are specific to those individual company salesforces. For Good Days from CDF, we helped generate a spiff program for their Walgreens fundraiser. When employees of Walgreens receive%5 donations for Good Days from their customers, they give the customer a free 2012 calendar. And the employees that receive the most donations receive free movie passes.
Plus the stores that perform the best receive movie watching parties. A managers guide and checklist was created to help managers launch and support the promotion.
Calendars and coupon books were given to customers when they made donations. ePrize is a leading e-promotion company that we have consulted with a several occasions. The following three slides are examples of their case studies. Spiff 101: Sales incentives. Best practices and case studies.
Overview SPIFF Definition SPIFF Best Practices Numantra examples Eprize examples Key Considerations. What’s a SPIFF?
Spiff 1 verb (used with object) Informal. To make spiffy (usually followed by up ): Let's spiff up this office with new furniture. Origin: 1875–80; perhaps v. Spiff well-dressed; see spiffy. What’s a SPIFF? Spiff 2 noun 1. A bonus or other form of remuneration given to retail salespeople for promoting the products of a particular manufacturer.
Verb (used with object) 2. To reward (a salesperson) with a spiff.
Origin: 1855–60; origin uncertain. “ Special Performance Incentive Fund”. 1. Salesman sells company’s product to customers 2. Customers pay company for products 3. Company pays salesman 4. Salesman receives regular commission 5.
Salesman receives SPIFF rewards. Why this works TANGIBLE GOALS MEETS QUOTA. SPIFF Best Practices When a manufacturer wants to gain market adoption with a new product When a retailer wants to liquidate some of its inventory To incent sales people to sell certain combinations of widgets, etc. SPIFF Best Practices Budget of all programs should not exceed the total earnings of the sales force by 3%.
Spiffs should be used for “doing something new for the first time.” They should not be used to spike performance during a period. They are narcotic in nature: the more you use them the more you need to use them. Moderation of use with healthy hoopla is the best prescription for success. Avoid the use of “chance” to determine winners and payouts.
SPIFF Best Practices Most contests or spiffs are made up of three components: A Sales Driver Measurement To Win A Prize. SPIFF Sales Drivers Sales Dollars, Revenue Dollars, Sales/Revenue For Target Products, Attainment of Quota, Average Order Size, New Business- Renewals-Winbacks, Pipeline Built, Quotes/Proposals Sent, Quote/Proposal Close Rate, Telephone Calls, Face To Face Visits, Decision Maker Contacts, Voicemails Returned/Inbound Calls, Phone Time You may also want to tie your contest to sales behaviors. For example: Listening for sales reps using sales scripting or voicemail messages that you’ve coached them to use. Sales behaviors do drive sales, but are harder to track and measure. SPIFF Sales Measurement First, Most or Highest Most improved or biggest gains in specific period, ex.
Day over day, week over week Best team performance Most team members achieving drivers (ex. 70% of team, versus 30% of team). SPIFF Prizes If Reps have a very lucrative commission plan outside of the contest, the prize for your contest will need to be lucrative enough in comparison to drive any results. For example, if my monthly incentive target is $10,000 and is tied to hitting my sales dollar quota, if you run a contest tied to the best voicemail messages and the prize is only $100 or a company golf shirt, I will probably not participate. It would be in my best interest to focus on driving sales toward my $10,000 payout. On the flipside, if the contest prize is too lucrative, I may stop focusing on my core responsibilities and just try to win the contest prize. EXAMPLES.
DentZone Proposed Sales Incentive Program We’re going to keep dealership employees selling with the Dent Zone Sales Rewards program! First, we’ll create a 12-month long sweepstakes program with multiple entries. In order to receive an entry, the dealership employees will need to watch a video or engage with the brand. We’ll also implement a sales reward program that will reward dealership employees for selling Dent Zone services. We’ll verify sales via a unique code, or integration with a back-end server that tracks all sales. For each sale and employee makes, they get a spin on the SPIFF Wheel! The SPIFF Wheel is pre-populated with different cash amounts that employees will win – from $5 to $500!
The more you sell, the more chance of bringing in some huge cash! Employees will receive monthly emails with valuable content and reminders to sell and participate in the sweepstakes.
DentZone Proposed Sales Incentive Program Monthly Emails. Employees will receive one email every month with great content and a reminder to sell more and participate in the Sweepstakes.
Sweepstakes Overlays. Low-hurdle participation element to keep employees engaged over the course of the year, and educated about the service. High-level rewards keep players excited and engaged.
They will sell more, knowing it increases their chances at larger rewards! Virtual Punchcard.
Virtual Punchcard is a continuity approach designed to reward multiple behaviors over a longer campaign period. Increasing rewards over multiple thresholds helps reinforce behaviors, drive sales, and maintain interest. E-PRIZE EXAMPLES. Key Considerations Goals and Objectives. What do you want to accomplish? What activity or behavior do you want to incentivize? What formats and channels will be used to communicate the program and support program activity?
How will the program be implemented? How will we protect against fraud?
How will incentives be rewarded? How will success be measured, tracked and reported?
Contents. Origin An early reference to a spiff can be found in a of 1859; 'The percentage allowed by to their young men when they effect sale of old fashioned or undesirable stock.'
An article in the of 1890 on the practices in London shops uses the term: a 'spiff' system is usually adopted, spiffs being premiums placed on certain articles, not of the last fashion, indicated by a marvelous hieroglyphic put on the price ticket. These marks are well known by the assistant, and the almost invisible mystic sign explains why an article, wholly unsuitable, is foisted on the jaded customer as 'just the thing.'
The suggests that (apart from a corruption of specific) it could be connected with the use of the word in that period to mean a or somebody smartly dressed (hence spiffy, and to spiff up - to improve the appearance of a place or a person), but nobody seems to have been able to disentangle the threads of which came first, or what influenced what, or where the word originally came from. Practice In 1936 Rex Stout used the word in Nero Wolfe's 'The Red Box' (Chapter 3): 'He stopped, smiling from Wolfe to me and back again like a haberdasher's clerk trying to sell an old number with a big spiff on it.' In 1947 it was reported that spiffs were prizes given to employees who sold particularly high amounts of electrical goods. Further reading. Andris A. Zoltners, Prabhakant Sinha, Sally E. Lorimer (2008) The Complete Guide to Sales Force Incentive Compensation, Amazon.
F. Caldierero & A. Coughlan (2007) Marketing Science 26 (1) pp 31–51 'Spiffed-up channels: The role of spiffs in hierarchical selling organizations'. CCI eBook, References.
How to Enthuse Channel Partner Participation in Spiff Programs Since the mid-19 th century, Spiff programs (Special Payment Incentive for Fast Sales) have been a staple in corporate engagement—widely regarded as the most popular and effective form of incentives that are used in modern business. Unlike other incentive programs which can be on the confusing side, Spiff programs are simple to understand and—for the most part—don’t intimate sales personnel to disengage from reward-based opportunities due to eligibility complexities. If your spiff programs aren’t providing you with the results you envisioned, or if channel partners are unmotivated by your deployed incentive—the problem may be simpler to fix than you think. 1.) What’s the Point? Like most things in life, maintaining solid organization, blueprinting strategies, and brainstorming objectives are a key component to seeing something/anything become successful. Diving head first by deploying spiffs for channel partners without a clear direction or tangible objectives in place is a recipe for disaster.
Sure, this process may seem obvious—perhaps even rhetorical—but you would be amazed at the sheer level of spiff programs that are designed without a framework of defined goals. For example, what themes matter most to the success of your business; what you’re trying to achieve:. Enter diversified vertical markets?. Improve partner transparency and longevity via reward?.
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Minimize partners’ DSO (Days Sales Outstanding) percentage?. Increase the level of accounts receivable?. Bring lucidity into the indirect sales funnel?. Advance partner training/ customer service for end-customers?. Acquire higher market value? Although it’s important to have clearly defined objectives, it’s also imperative that you don’t overbook yourself with too many goals. Limit your strategy’s focus to three or less tangible objectives.
2.) Put Yourself in Their Shoes Through my experience, stepping into the mind of partners is one of the most effective strategies in stimulating motivation regarding channel program engagement. If you were on the other end of the spectrum, what sorts of incentives would capture your interest? Remember, although every individual on this planet is different, we all share an eerily similar reward system.
If you wouldn’t participate in an incentive, chances are most others won’t. 3.) Aim for the Mediocre In the channel industry, divide your channel partners based on best, average and worst sales performers.
Once divided, customize your spiff programs so that it is targeted towards the average or middle performers. You would think this strategy is counterintuitive since deploying spiffs for top performers would mitigate the least risk; however, those partners don’t need the added incentive—they are already motivated. You should be applying your energy to the middle demographic, as there is room for them to improve—thus increasing the stream of revenue throughout your entire sales funnel.
4.) Objectives Program Parameters Ambiguous eligibility requirements and subjective program guidelines are the two biggest factors that contribute to the failure of spiff programs. The program’s design should be structured objectively—painting a black and white image that leaves little to no room for interpretation. Examples of FAQs: → Program Structure. Unrestricted Programs—Eligibility for reward(s) applies to all partners who achieve required objectives.
Restricted Programs—Only a selective group of partners or sales personnel can obtain rewards based on a pre-determined quantity of winners. Phase Programs—Rewards are allocated at different stages of the selling process; for example, a reward for acquiring a lead without conversion. → Timeline. Some vendors yearn to see immediate results and often design the window of program eligibility too small to participate. Conversely, some vendors are less conservative on immediate results and hope to see long-term engagement. This is a good strategy for motivating partners to not participate, as the longer, they wait, the less enticing the incentive becomes.
→ Reward. An incentive that is irrelevant to the industry, fails to eradicate potential pain points or doesn’t offer a juicy enough reward (disregarding relevance) will surely limit partner engagement. Potential incentives include cash, in-house equipment sporting events, concerts, funds for marketing, references, testimonials, merchandise, travel airfare, etc. Spread the Word.
A robust sales spiff program may be just what your dealership needs to light a fire under your salespeople You’re planning your, and you’re having trouble wrapping your head around the numbers. Your team just hasn’t been closing enough deals lately, and you’re not sure what’s going on. When meeting day rolls around, though, you suddenly have a clearer picture as you look around the table. Your salespeople are physically present, but they look tired and mentally drained; there’s no “spark.” They’re in need of some. Motivation for auto salespeople can take a few different forms, but one prominent method is creating a sales spiff program.
What is a sales spiff program? Maybe you’ve heard of a sales spiff program before — or maybe you haven’t under that exact name. Either way, spiffs are short-term incentives based on a particular focus of your choosing. Salespeople earn bonuses — usually cash — for achieving specific goals that you’ve set. This is a widely accepted way in the auto industry to boost morale and encourage some friendly competition among your team.
Dealerships can use spiffs in many different ways. For example, if you have a 2007 Ford Explorer that’s been sitting on your lot for 30 days, tell your team that the first person to sell it will get an extra $50, in addition to their standard commission. You can offer spiffs for the most car sales in a day, for each positive review posted online, or for each new car sold. It’s up to you. Tips for establishing your dealership’s sales spiff program There’s not one catch-all template for a sales spiff program, so what you ultimately decide to do should serve your dealership’s unique interests. There are some tips, however, to keep in mind as you work to motivate your sales team. Spiffs shouldn’t be too frequent or too long Spiffs are meant to inspire your team to try harder, but in essence, isn’t that the point of commission too?
You assume they’ll work their very hardest to make sales because they want as much commission as possible, and then you’re surprised when your numbers are down. It’s because the commission is just part of their everyday job — and that gets tedious for everyone sometimes. If you have too many spiffs or spiffs that last too long, they’re not going to be special anymore, and that urge to compete will disappear. You should have spiffs every once in a while for short bursts of time, so they always hold their appeal. Have an expected ROI in mind It may be tempting to create a spiff on a whim when you walk into the dealership and see far too much inventory sitting there. Fight the urge to blurt out, “ The first person to sell three cars today gets a $200 spiff!” Instead, brainstorm specific areas of your dealership that you feel could use a boost. Then, set a budget that makes sense and create the desired ROI you hope to achieve.
After all, you’re not selling cars because it’s all fun and games — you’re a business, and you need to make money. If you’re creating spiffs that don’t make you money, there’s no point. Sync spiffs with advertising campaigns You may get good results on a spiff, but you have the potential to see great results if you create an advertising campaign around one. For example, trying to sell a particular vehicle to any customer that walks in the door can be challenging. However, if an brings in a qualified customer who’s already interested in that vehicle?
Well, that’s a grand slam. “A spiff program works when used in tandem with an advertising campaign. A tire sales advertising campaign, for instance, pulls tire-buying customers into the dealership,” said Sean Ugrin, founder and CEO of Spiffit, to. “It incentivizes advisors to sell tires and helps close more opportunities.” Ugrin also mentioned a case study when speaking with Auto Dealer Today.
He offered the story of a Toyota dealer who sold 81 tires in the month of February. In March, they added an automated, recurring 30-day spiff program and increased sales to the point where they were able to sell 304 tires in June. Make sure someone is in charge of tracking spiffs It’s fun to create spiffs and tell excited employees they’re going to win money, but you also have to deliver on your promises. Sometimes, between your dealership, automakers, and vendors, you may have a few spiffs going on at once. It can be easy to lose track of who is owed what, and when.
Putting someone in charge of the tracking and paying of spiffs is an easy to way to combat any potential mix-ups. Get creative with ideas As time goes on, you may feel the need to get more creative with your spiffs.
If you’re having trouble thinking of new ideas, hold a few brainstorming sessions during your sales meetings and get your team to participate. One dealership in Florida, put a fun spin on an old sales spiff called a pull-board. There’s a board covered in envelopes, filled with different amounts of money, and every time a salesperson meets a goal, they can pull an envelope down. Rick Case Fiat swapped out envelopes for balloons, and every sales person who met a goal got to throw a dart at a balloon.
A sales spiff program can be just what your dealership needs to motivate salespeople, increase sales, and boost morale. Just take your time crafting a program that makes sense (and makes you money), and you’ll undoubtedly see great returns.
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