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Motivating Salesforce (Motivation = an individual's willingness to…

- - - - Sales force needs: status, control, respect, routine, accomplishment, simulation, honesty
        
        E.g. change title, car program, include salespeople in forecasting, invite salespeople to top-executive meetings, salesperson of the month, assign everyone a set of loyal customers, set reasonable goals, run short-term sales contests, schudule off-site sales meetings, deliver promptly awards and benefits as promised
- - - - 1) effort - performance relationship
        
        Look out for:
        
        Accurate guidance
        
        Existent beliefs (understanding what leads to success)
        
        Willingness to work hard
        
        Correct role definitions
      - 2) performance - rewards relationship
        
        Look out for:
        
        Compensation plans are rightly settled
        
        Used beyond salesforce nowadays..
        
        Reward might be beyond 'higher pay' - understanding how people are motivated is complex and critical
        
        Reinforce internal rewards
      - 3) importance of receiving a more certain reward
    - - Cover targeted segments/customers to define opportunities
      - Develop need
      - Close/sell opportunities
      - Deliver customer value to generate further sales
    - - Develop high performance cultures
    - - Setting quotas
        
        Quantitative goals to help management motivate salespeople, guide salespeople where to put their efforts, provide standards for performance evaluation
        
        Quota types:
        
        Profit-based: gross margin (net sales - cost of goods sold), contribution margin = grow margin - direct selling expenses
        
        Activity-based: activities that have the potential to produce sales, # calls per day; proposals submitted, product demos, calls on new accounts, customer satisfaction based
        
        Volume-based: # units sold, total revenue, total signings (contract value)
        
        When are quotas effective?
        
        Acceptance is there
        
        If challenging but doable
        
        Difficult goals vs moderate goals
        
        Difficult motivates more if bundled with relevant skills, experience, coaching, etc.
        
        Important that management provides feedback, tries to gain/improve commitment, demonstrates assertive leadership, builds up self-confidence, provides modeling
        
        Setting quotas
        
        Take market-based growth
        
        Individual territory based
        
        Take past x apply forecasted growth (or retention value): but past might be perpetuated
        
        Salesperson characteristics-base (skills, attire, etc.)
        
        MEASUREMENTS SHOULD BE IN PLACE
      - Promoting self management
        
        Critical for sales management: important when layers of mid-management are eliminated, give autonomy to salesforce, and support role to the sales manager, setting goals and monitoring against them is key
      - Other incentive programs
        
        Prizes: sales contests
        
        Recognition programs: 100% club, golden circle, president's club
        
        Challenges: to drive salesforce to short term high priority areas
        
        Definitions and measurement should be precise, should reflect what organization values most, fairly nominated and distributed, controls and balances should be in place (ethics)