how to recognise, reward & retain your top sales people or dealers


SALES RECOGNITION DRIVES ENGAGEMENT

RECOGNITION CAN DRIVE SALESPEOPLE

TO BE MORE ENGAGED

Produce over 20% more revenue

Are 43% more productive

Are 87% less likely to leave

SALES RECOGNITION TAKES A VARIETY

OF FORMSRecognize optimal behaviors through frequent feedback

Recognize accomplishments through creative programs

and awards

Recognize results with elite travel

and events

FREQUENCY

RE

AC

H

RECOGNIZE RESULTS RECOGNIZE BEHAVIORRECOGNIZE ACCOMPLISHMENTS

Goal-BasedCorporate to EmployeeDrives Goal Attainment

DiscretionaryManager to Employee

Reinforces Accomplishments Motivational

Peer-to-Peer360° Recognition

Reinforces Core ValuesOperational

The more types of

recognition you use, th

e more employee

s you will rea

ch.


SALES RECOGNITION: TOP PERFORMER PROGRAMSSales recognition programs can be a key driver of retention and loyalty when designed correctly. Unfortunately, most annual top performer programs haven’t changed in years. In an effort to maintain traditions, marketing and sales leaders have relied on existing rules structures and metrics to determine those who receive rewards and recognition.

Well designed sales recognition programs often combine updated metrics and measures with a creative and compelling name and artwork. It’s important to create a consistent identity and use that with all program materials so your audience recognizes and pays attention to each communications piece.

Here are some examples of overall program names and identities:


BEYOND SALES: OTHER TEAM MEMBERS TO RECOGNIZE

Corporate/Support Staff

• Nominations-based• Unique metrics• Different rewards such as:

Merchandise packages, weekend get-aways, Warehouse Windfall, award points

Inside Sales

• Handled similar to sales reps, can win as a team or separate rules/metrics

Distribution Partners

• Usually have their own programs, but may be included in a support role


FIVE ELEMENTS OF EFFECTIVE

PRESIDENT’S CLUB DESIGN

Top Performer RecognitionSTRATEGY

Current PerformanceObjectives

Tracking of Actual

IMPACT AND BUSINESS METRICS

RegistrationsLaunch Event

Response Tracking

LAUNCHCommunicationsResults Tracking

Spurts

ENGAGEMENT

Personal ImpactPublic Recognition

Role Modeling

REWARD AND RECOGNITION PROCESS

01

0203

04

05


01 STRATEGIC PROGRAM DESIGN• Prior to planning a President’s Club, articulate your specific strategy• Different strategies drive different outcomes – and clearly defining a strategy at the beginning will focus your

efforts, designs and executions

RIGHT NUMBER TO RECOGNIZE?Differing markets and industries vary in the amount of sales reps recognized:

Industry % of Achievers

Telco 2%-5%

Financial 10%-20%

Beverage 5%-35%

Retail 5%-10%

Technology 2%-3%

EXAMPLE RULESOPEN-ENDED• Net Sales: Achieve $7.0 million or more in qualifying net revenue• Hit 101% of quota• Add $1MM in sales over a period of time

CLOSE-ENDED (STACK-RANK)• The Top-5 sales reps in each district based on total net revenue; or the top 50 overall• Appropriate when budget cap is needed

IMPROVEMENT• Improvement, for example achieve 25% sales improvement over previous year


01 STRATEGIC PROGRAM DESIGN• Prior to planning a President’s Club, articulate your specific strategy• Different strategies drive different outcomes – and clearly defining a strategy at the beginning will focus your

efforts, designs and executions

QUALIFIERS & ALLOCATIONSPROFIT QUALIFIERGross or Net Profit for example achieve 30% gross profit on sales TEAM OBJECTIVEMust achieve business group or team objective for individuals to qualify

CUSTOMER SATISFACTION QUALIFIERMaintain 95% customer satisfaction based on customer surveys

REGIONAL ALLOCATIONSAllocating winners by region or area, for example Midwest vs. South

SALES ROLE ALLOCATIONSAllocating winners by role type, for example Inside Sales vs. Outside Sales

ELIGIBILITY/EARNING AWARD

REVENUE ACCOUNTABILITY• Eligibility reserved for individuals with ‘at risk’ compensation based on revenue generation objectives BY NOMINATION• Designated support roles (not revenue accountable). Includes a review & approval process• Examples: Marketing, R&D, corporate DISTRIBUTION PARTNERS• May include principals of 1st line dealer/distributor/rep firms based on achievement of volume

growth objectives

WILD CARD• Winners chosen based not on total sales, but on sales of strategic products or specific

accomplishments. Winners chosen by sales leaders or CEO.


02 MEASUREMENT APPROACH • Impact Measures reflect the impact President’s Club has on your people. • Business Measures quantify the results of the impact measures… ”How much was it worth?”

Current results should be analyzed and provide the baseline for planning and target setting.

Targeted results should be articulated in the planning process to focus the design on specific and measurable desired Impact and business outcomes.

Actual results should be tracked during the program to provide information for course correction and optimization, and analyzed afterwards for continuous improvement efforts.

Visual scorecards engage participants and leaders and can help participants set goals and stay engaged for longer periods of time.

DIMENSION OF INCENTIVE MEASUREMENT DATA VISUALIZATION

Measurement Elements

Impact Measures

Current Targeted Actual

Business Measures

Current Targeted Actual



CASE STUDYTransportation This automotive manufacturer wanted to recognize and reward its highest achieving sales managers who met their stretch sales objectives in addition to meeting customer satisfaction and training qualifiers.

ChallengeDesign a program that would engage dealerships of all sizes with a travel destination that would appeal and accommo-date over 550 couples while driving motivation and improvement for sales managers.

Solution BI WORLDWIDE(BIW) designed a 3½ month wholesale competition that grouped dealers in like-size competitive groups. The program was supported with web-based reporting, including personalized standings and frequent electronic commu-nication. EngageNGo, a BIW communication portal, engaged the audience during the contest by using video and other media to promote the destination, an exclusive resort in Cancun, Mexico.

Results Sales Managers were awarded the trip to Mexico by achieving an average. With 60% of dealers enrolled, winning dealers attained 140% of the pre-determined objective. Enrolled dealers also increased their sales 32% over the previous year.



CASE STUDYTransportation A major automotive manufacturer wanted to design an annual premier recognition program event for their “best of the best” dealers, as well as senior management. A message and recognition platform was needed within the body of this program to ensure maximum involvement.

ChallengeDevelop an event to appeal to participants with unique experiences not available to the general public while integrating a platform for Senior Executives to communicate and recognize their top dealers.

Solution BI WORLDWIDE decided to show participants a New York experience like nothing they had ever seen before. The event started with a cocktail hour where each guest received a personal invitation to join a senior executive at some of the fin-est restaurants New York has to offer. A morning recognition meeting was followed by key note speakers Toni Dungy and Sean Hannity. Cigars and Scotch, private lecturer guided tours, personal shopping experiences, private cars and drivers or spa session were afternoon options that participants could choose from. The final gala event included New York’stop caterer serving an amazing dinner with a private concert by Elton John.

Results BIW met and exceeded all customer and participant expectations as indicated by the post event surveys with participants claiming the event was an “Absolute Home Run”.


03 PROGRAM LAUNCH • Statistically the highest engagement with any program happens at launch. • Using measurable elements – at launch – assure that programs gain commitment and buy-in.

LIVE OR VIRTUAL LAUNCH EVENTTrack participation for in-person launch meetings or via web-enabled virtual meetings


03 PROGRAM LAUNCH • Statistically the highest engagement with any program happens at launch. • Using measurable elements – at launch – assure that programs gain commitment and buy-in.

WEBSITE USAGE TRACKINGCommunicate Presidents Club information online and track access to gauge awareness

BEHAVIORAL ECONOMICS INSIGHT

Vividness Effect Be visual. People tend to remember your message when you use memorable images, sounds or stories.


04 PROGRAM ENGAGEMENT • After launch, maintaining engagement and focus can be difficult. Simply sending out occasional email reminders is not enough.• Best-in-class programs frequently communicate progress, share ideas, reward behaviors, and celebrate success along the way.

ONGOING CAMPAIGN


Availability Bias Communicate frequently. People tend to remember and take action on the most recent information received.



Relativity Bias Share progress using leaderboards. People regularly compare themselves to others and want to “keep up with the Joneses.”

04 PROGRAM ENGAGEMENT • After launch, maintaining engagement and focus can be difficult. Simply sending out occasional email reminders is not enough.• Best-in-class programs frequently communicate progress, share ideas, reward behaviors, and celebrate success along the way.

PROGRESS TRACKINGProvide simple and personalized progress to goal meters

Thanks to all who participated in our recent President’s Club Event. For those who were not able to attend, I strongly encourage you to connect with someone from your dealership who attended or your RSM to understand the information that was presented and the plans we have for the future.

Michael David, Vice President Sales


05REWARD & RECOGNITION PROCESS

• The final step, and arguably the most critical, is the point at which awards are achieved or recognition is given.• If the award is not tied back to the overall goals and objectives of the program and the winner doesn’t make that

connection – your efforts will have been wasted

OPTIMIZING THE REWARD & RECOGNITION PROCESS

INVOLVE THE MANAGEREnsure achievers’ managers are aware and involved in

recognizing the achievement

MARKET YOUR ACHIEVERSPublicizing your achievers acknowledges their contributions

and creates role models in your organization





OPTIMIZING THE REWARD & RECOGNITION PROCESS

CREATE “BRAGGING RIGHTS”Recognition certificates, emblematic items, and tangible awards

provide substantial non-monetary value

MAKE IT AN EVENTWhether local, national, or virtual, look for opportunities

to publicly recognize contributors





RECOGNITION PURLRecognition PURL is a patented, social way to recognize top reps, dealers and team members for their milestones and achievements.

REDEEM FOR AWARD

SEND THANK YOU EMAILSHARE ON SOCIAL MEDIA

VIEW CONTRIBUTORS COMMENTS, PHOTOS, VIDEOS





REWARD IDEASGROUP TRAVEL (Most Prevalent)• High profile destination• Frequently includes spouse or guest• Cash for Misc. expense

RECOGNITION COMPONENT (TANGIBLE)• Publicly recognize top performers, including symbolic awards

TEAM-BUILDING COMPONENT• Event within event VALUE TIERING AT EVENT• Based on business role (direct Vs. support)• Master agenda with sub-agendas based on role• Upgraded accommodations• Separate events (Example: Distribution Partners)


BEHAVIOR CHANGE

CAMPAIGN DESIGN

IDIOSYNCRATIC FIT

DETERMINISTIC/ PROBABALISTIC

CHOICE ARCHITECTURE

RELATIVITY BIAS

AVAILABILITY BIAS

SPOTLIGHT EFFECT

HEDONIC MOTIVATION

VIVIDNESS

SAY-DO GAP

ILLUSIONARY GOAL PROGRESS & GOAL GRADIENT THEORY

REWARDSENGAGEMENT STRATEGY

NEXT STEP: APPLIED BEHAVIORAL ECONOMICSResearch in the area of behavioral economics can add a dimension to your President’s Club program design, your engagement strategy, and making your reward stand out.

how to recognise, reward & retain your top sales people or dealers

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sales reps

sales leaders

types of recognition

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award pointsinside sales

creative programs

performer programs havent

different outcomes