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Effective Strategies to Motivate Sales Teams

This document discusses strategies for motivating different types of salespeople. It divides salesforces into three groups: stars, laggards, and core performers. For stars, tactics like uncapped commissions and contests with multiple winners are recommended to prevent ceilings from limiting motivation. For laggards, pace-setting bonuses, natural social pressure from a strong pipeline of talent, and programs that create responsibility to the team can help motivate. Core performers respond well to multi-tier targets that get progressively tougher and prizes that high performers do not have access to. Examples from companies like Zendesk are also provided.

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UjjwalBansal
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74 views9 pages

Effective Strategies to Motivate Sales Teams

This document discusses strategies for motivating different types of salespeople. It divides salesforces into three groups: stars, laggards, and core performers. For stars, tactics like uncapped commissions and contests with multiple winners are recommended to prevent ceilings from limiting motivation. For laggards, pace-setting bonuses, natural social pressure from a strong pipeline of talent, and programs that create responsibility to the team can help motivate. Core performers respond well to multi-tier targets that get progressively tougher and prizes that high performers do not have access to. Examples from companies like Zendesk are also provided.

Uploaded by

UjjwalBansal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Motivating Your Sales

Force
Presented by-
Group 9
There is a need to motivate salesforce
because of the following reasons

• Sales is a difficult job


• The belief that, “good sales
people are born not made”
The need to motivate • People thing that Incentive
salesforce compensation is enough for
motivation
The strength of
The type of
The nature of salesperson’s
compensation
the task need for
plan
achievement

Determinants of
Motivation
Sales executives use many tactics to motivate their teams, some of them
being :
• Bonus programs
• Exotic trips
• Sales contests
• Compensation plans
• Commission rates
Motivating and many more…

Salespeople: But only a few progressive companies have been able to coax better
performance from their teams by treating their sales force like a portfolio of

What Really investments that require different levels of attention.

This concept works because some salespeople have greater ability and
Works? internal drive than others. We can divide our salesforce into three parts-
 Stars- Stars seem to knock down any target that stands in their way- but
may stop working if any ceiling is imposed
 Laggards- Laggards need more guidance and prodding to make their
numbers
 Core performers- Core performers fall somewhere in the middle- they
perform if they’re given proper incentives
No ceiling on Overachievement
Multiple Winners
commissions Commissions
• Capping commissions • Salespeople may earn a • A study of
when salespeople are penny on a dollar with Mike’s reveals that
hot may control costs, their regular contests with multiple
but it also encourages commission rate until winners boost sales
stars to quit selling quotas are reached, effort and performance

Motivating but earn two pennies


on a dollar on all sales
above quotas
better than contests
with winner-take-all
prize structures

Stars • Increasing the number


of prizes in a contest
increases the chances
that a laggard or a core
performer will win a
prize in place of a star,
which motivates stars
to work harder
Pace-Setting Natural Social- Program included-
bonuses Pressure Social pressure
• This suggests • “Man on the • When designed
including quarterly- bench” effect well, programs
bonuses instead of • Having a high heighten laggards’

Motivating annual-bonuses
• They help laggards
quality pipeline of
new sales talent
sense of
responsibility to
contribute to the naturally puts the team and
Laggards bottom line
without detracting
social pressure on
low performing
motivate stars to
help laggards out.
from the salespeople • They avoid
performance of demoralizing
other groups people.
Multi-Tier targets Prizes
• Tiers act as stepping stones • The idea here is to give
Motivating • With each tier, targets get prizes in such a way that
tougher to attain and low-level prizes have some
Core research has proven that
this motivates core
quality that the high level
prizes do not have
Performers performance • This highly motivates core-
performers
The compensation offered by LIC is in form of
commission

EXAMPLES The higher commission stimulates greater efforts


of agents

The compensation plan provides a mechanism to


integrate the agents personal goals and corporate
goals

These plans are more important when selling is


more important than non-selling tasks
Zendesk's sales management celebrates sales rep wins
through a champagne campaign. Anytime a rep reaches their
target number, a bottle of champagne is placed on their desk.
It's a small but effective strategy.

EXAMPLES

Zendesk sales leadership uses the analogy of a ship out at sea


when overall numbers are down. Two slides are shown to
managers. One slide pictures a yacht. The water is calm. The
next slide shows a ship in the middle of a storm. Sales
leadership lets their managers know that it is their job to
navigate the waters when the seas are rough.

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