In order to ensure incentives are working, it is important to analyze and re-analyze programs at different points in the incentive program cycle. Often times, if programs are not working like they should, it’s time to consider a redesign. But not just any incentive revamp, one informed by data.
The Challenge:
Our client was paying an incentive of 1% of every sale to dealer sales representatives, but sales were declining, and costs were rising. Not a recipe for incentive success.
Our Solution:
We worked with the client to redesign a program based on careful analysis. They reduced the payout to 0.25% on every sale, introduced targeted promotions for new products paying at 1.25%, introduced team competitions, introduced incentive travel for top 40 sellers (adjusted by market). A combination of both short-term and long-term incentives that included individual and team goals was the boost the client needed.
Results
The client was able to reduce their incentive budget by 12%, while still growing sales by 6% and increasing overall seller engagement. We’ll chalk that one up to a win for all!
