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Captive Sales Force
Sales Contests
&
Sales Recognition
Presentation
Great Ideas Come From Great Clients
Captive Sales Force Objectives
 New Accounts
 Quota Attainment
 Sales Clubs
 Product Launch
 Training
 Steps to the Sale
 Recognition
Monthly Rewards for Quota and
Annual Trip Club Rewards
100% Club
Trip
Promotion
Points Reward Program
•Best Buy, buy.com
•Travel, Hotel, Air
•Entertainment
•Events
•For Men and Woman
Demo Website:
https://taz.valuesme.com
Username: salesdemo
Password: demo
New Account Recognition
New Account Recognition
Sales and Service/Support
Quarterly Sales Quota
Stretch Goal Incentive
Variable Ratio Reward Cards™

There are 20 rub off spaces on the front of each card. Beneath
5 of the spaces is the word “WIN”. Participants rub off any 5
spaces. The number of WINs uncovered (and your budget)
determines the award!
Variable Ratio Reward Cards™
You want to motivate Sales Reps to Open New Accounts &
Sell More of Your Product. Your incentive budget is $25 per New Account
& $25 per “X” cases sold. An example of the Variable Ratio Reward
Card™ that could be earned is:

WINs Uncovered
0
1
2
3
4
5

Points
2,000
3,000
4,000
10,000
100,000
Cruise

($)Value
10
15
20
50
500
3,000

(or 600,000 points!)

Your fixed cost is $24.96 each, which is the average awards value of the
card. VR Cards™ are invoiced as they are issued @ a fixed cost to you.
Note: We recommend Sales Managers receive VR Cards
based on their salespeople’s performance
Variable Ratio Reward Cards™
The primary motivational power
of VR Cards™
Jackpots on Every Card!
(VR Cards™ are not
seeded; each card has the
opportunity for the grand prize
award)
Every Card is a Winner! (No
losers)
BINGO Sales Contest
BINGO
BRING IN NEW GROWTH
OPPORTUNITIES
HOW YOU PLAY
For Every $200 of Katun
Equipment Sold fills a
Square
 One Row win 100 points
 Two Rows win 200 points
 Three Rows win 300
points
 Four Rows win 400 points
 All Rows win 600 points
 $ Sold based on Katun
price to Dealer

A
1
2
3
4
5

.

B

C

D

E
Tic Tac $ Sales Contest
HOW YOU PLAY

Model

Model

Model

Model

Model

Model

Model

Model

Model

Sell XXX Graco Equipment
to a Customer and fill a
Square
 Three Squares in a row
win 100 points
 Six Squares win 300
points
 All Nine Squares win 600
points
 $ Sold based on Graco
price to Dealer
 Select Prizes with the
Points Won
Plateau Sales or Purchase Contest

 Sell a Lot and Win a Lot
 Plateau Structure
 $ Sold based on Graco
price to Dealer
 Select Prizes with the
Points Won
 Payout 2% of sales

Points/
Gift

$500

$100

$750

Win More with
Graco

Graco
$ Sold

$150

$1000

$200

$1250

$250

$1500

$300

$1750

$350

$2,000

$400

$3,000

$600

$4,000

$800

$5,000

$1,000
Promotion is Less Risky than
Discounts, Rebates or Free Goods
If Your Present Gross Margin Is:
5%
Cut
Price
1%
5%
10%
15%
20%

10%

15%

20%

25%

30%

40%

You Need an Increase in Unit Sales Of …
25.0%

11.1%

7.1%

5.3%

4.2%

3.4%

2.6%

100.0%

50.0%

33.3%

25.0%

20.0%

14.3%

200.0%

100.0%

66.7%

50.0%

33.3%

300.0%

150.0%

100.0%

60.0%

316.7%

172.7%

90.5%
Promotion versus Discounts or
Rebates or Free Goods










Discounts and promotional allowances used repeatedly become ‘part of the
price’, and appeal is lost. Hence, why many automobile companies have
gone to a everyday price versus discounts or rebates
A true incentive provides not only an inducement, but adds excitement,
interest, drama and a sense of urgency.
Discounts often mean ‘giving away’ the product and ‘doing this a new way’
each time develops into a vicious cycle.
Discounts simply cannot generate the appeal and motivation as can
merchandise or travel awards.
A dealer or distributor accustomed to buying on the basis of discounts is
vulnerable to your competitors’ inducements.
Discounts are often passed on to the end-user at a lower retail price.
Discounts can be easily matched by competitors
Non-cash incentives represent minimal investment because the program
funding is accrued basically from increased sales or purchases.

If cash/rebates/free goods/discounts are such a great motivators,
why aren’t they selling more or buying more?
Why Incentives Work
 Incentive programs can increase performance by up to 44 percent in
teams and 25 percent in individuals, according to “Incentive,
Motivation, & Workplace Performance,” a study by the International
Society of Performance Improvement.
 Fewer than one in four American workers is working at full potential;
half of all workers do no more than directly asked; and 75 percent of
employees say they could be more effective in their jobs, according to
research by the Public Agenda Forum.
 70 percent of unhappy customers abandon vendors because of poor
service, according to the Forum Corp.
 A 5 percent increase in customer retention can increase lifetime profits
from a customer by 75 percent, according to The Loyalty Effect
(Harvard Business School Press), by Frederick Reichheld.
 Some 65 percent of executives believe that incentive programs using
travel and merchandise are more memorable than those using cash;
60 percent of executives believe that sources of merchandise and
travel are more helpful in creating an incentive program than are
sources of cash, and 57 percent of executives believe that bonus
payments are often regarded by employees as something they are
due, according to the most recent “Survey of Motivation and Incentive
Applications” by the Incentive Federation.
Incentive Strategy
Performance with Incentive (Move the Bar)
Incentive Strategy
 The Target Audience for Incentives should be
the Mid-Range Performers.
 This is the biggest audience and can have the
most impact on overall objectives
 Usually a company has:
•
•
•
•
•

5-7% Top Performers
80-90% Mid-Range Performers
5-7% Poor Performers (short-term)
Performance will increase at most levels
Variable to market conditions (5-30%+)
Sales Contest Length
 Based on Sales Cycle
 Then double Promotion Period
 Flex Period Promotions: Allows
Channel Partners to run the
promotion to meet their schedule
Budget Rules of Thumb
 Sales: 1-2% if product margins less
than 30% and 2-3% if product
margins greater than 30%
 Incremental Sales 4-7% if product
margins less than 30% and 7-10% if
product margins greater than 30%
 Trial Offers can range from 5% to
20% of Sales
Tracking Sales/Purchases
o Sales Data
 Track Sales by Distributor
 Sometimes get sales by DSR

o Claim Prize
 Claim Form and Attached Invoice/PO
 Claim Form and then we verify by
Distributor Sales Data
 Send in UPC’s
 Payout when Distributor Pays Bills
Sales Training Tools
 Virtual Role Play: Allen Interactions
 Product Quizzes with rewards for
passing
 Product Sample Kit/Display
 Brand Awareness Advertising:
Counter Mats, Mouse Pads, Wall or
Desk Calendars, Mugs, Pens, Caps,
Shirts
Prizes

Award Points are
redeemed for the
top-quality, namebrand items
featured in the
Awards Selection.
.
Prizes
Amazon over 6 million to select
from, web based, self admin
Hand Pick Prizes/Premiums
Individual Vacation: HMI Miles,
HMI Vacation Packages
Catalogs: Hinda, PFI, Quality
and Certif-A-Gift, Top Brands
RKM Game Cards
SCA On line Game
Pro Licensed Merchandise
Gift Cards
Merchandise vs. Cash
 Cash satisfies basic needs which does not motivate
behavior.
 Cash is the currency of compensation and pricing. Use
cash and it becomes part of an individual’s compensation
package or a customer’s pricing program. Invariably, if
you offer a cash incentive to any audience, internal or
external, it becomes a benchmark against which future
compensation and pricing issues get measured, leading to
a condition known as “program addiction.” Because cash
quickly gets mingled with other compensation or expenses
(in the case of customer cash expenses)
 Major Oil Company Study Summary
 Non-cash outperformed cash by 46%
 Non-cash: 37% increase in product mix
 ROI
 Cash: -20%
 Every $1 invested = an $0.80 return
 Non-cash: +31%
 Every $1 invested = a $1.31 return
Mazda Motor of America
Situation:

Budget
$75 per vehicle

Strategy
Emphasize Value

Goal: Stimulate
B-Series Sales

• 90% of Mazda Dealers
carry at least one other
brand of vehicle
• After introducing many
state of the art vehicles,
light truck sales suffered
Test:

Incentive
Cash vs.
AwardperQ’s

• Two randomly-selected
test groups
• Randomly assigned
cash/non-cash rewards
Mazda B-Series Truck
Example
15.65

16
14
12
10
8

% Over Objective

6
4
2
0

2.13
Cash Districts

AwardperQs
Mazda B-Series Test
Results
Number of Districts Compared to Objective
35
30
25

15

20
15
10
5

21

1
16

1
10

0
Cash

AwardperQs

Over Objective
Even with Objective
Under Objective
Thank You

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Sales Incentive program examples

  • 1. Captive Sales Force Sales Contests & Sales Recognition Presentation
  • 2. Great Ideas Come From Great Clients
  • 3. Captive Sales Force Objectives  New Accounts  Quota Attainment  Sales Clubs  Product Launch  Training  Steps to the Sale  Recognition
  • 4. Monthly Rewards for Quota and Annual Trip Club Rewards
  • 6. Points Reward Program •Best Buy, buy.com •Travel, Hotel, Air •Entertainment •Events •For Men and Woman Demo Website: https://taz.valuesme.com Username: salesdemo Password: demo
  • 12. Variable Ratio Reward Cards™ There are 20 rub off spaces on the front of each card. Beneath 5 of the spaces is the word “WIN”. Participants rub off any 5 spaces. The number of WINs uncovered (and your budget) determines the award!
  • 13. Variable Ratio Reward Cards™ You want to motivate Sales Reps to Open New Accounts & Sell More of Your Product. Your incentive budget is $25 per New Account & $25 per “X” cases sold. An example of the Variable Ratio Reward Card™ that could be earned is: WINs Uncovered 0 1 2 3 4 5 Points 2,000 3,000 4,000 10,000 100,000 Cruise ($)Value 10 15 20 50 500 3,000 (or 600,000 points!) Your fixed cost is $24.96 each, which is the average awards value of the card. VR Cards™ are invoiced as they are issued @ a fixed cost to you. Note: We recommend Sales Managers receive VR Cards based on their salespeople’s performance
  • 14. Variable Ratio Reward Cards™ The primary motivational power of VR Cards™ Jackpots on Every Card! (VR Cards™ are not seeded; each card has the opportunity for the grand prize award) Every Card is a Winner! (No losers)
  • 15. BINGO Sales Contest BINGO BRING IN NEW GROWTH OPPORTUNITIES HOW YOU PLAY For Every $200 of Katun Equipment Sold fills a Square  One Row win 100 points  Two Rows win 200 points  Three Rows win 300 points  Four Rows win 400 points  All Rows win 600 points  $ Sold based on Katun price to Dealer A 1 2 3 4 5 . B C D E
  • 16. Tic Tac $ Sales Contest HOW YOU PLAY Model Model Model Model Model Model Model Model Model Sell XXX Graco Equipment to a Customer and fill a Square  Three Squares in a row win 100 points  Six Squares win 300 points  All Nine Squares win 600 points  $ Sold based on Graco price to Dealer  Select Prizes with the Points Won
  • 17. Plateau Sales or Purchase Contest  Sell a Lot and Win a Lot  Plateau Structure  $ Sold based on Graco price to Dealer  Select Prizes with the Points Won  Payout 2% of sales Points/ Gift $500 $100 $750 Win More with Graco Graco $ Sold $150 $1000 $200 $1250 $250 $1500 $300 $1750 $350 $2,000 $400 $3,000 $600 $4,000 $800 $5,000 $1,000
  • 18. Promotion is Less Risky than Discounts, Rebates or Free Goods If Your Present Gross Margin Is: 5% Cut Price 1% 5% 10% 15% 20% 10% 15% 20% 25% 30% 40% You Need an Increase in Unit Sales Of … 25.0% 11.1% 7.1% 5.3% 4.2% 3.4% 2.6% 100.0% 50.0% 33.3% 25.0% 20.0% 14.3% 200.0% 100.0% 66.7% 50.0% 33.3% 300.0% 150.0% 100.0% 60.0% 316.7% 172.7% 90.5%
  • 19. Promotion versus Discounts or Rebates or Free Goods         Discounts and promotional allowances used repeatedly become ‘part of the price’, and appeal is lost. Hence, why many automobile companies have gone to a everyday price versus discounts or rebates A true incentive provides not only an inducement, but adds excitement, interest, drama and a sense of urgency. Discounts often mean ‘giving away’ the product and ‘doing this a new way’ each time develops into a vicious cycle. Discounts simply cannot generate the appeal and motivation as can merchandise or travel awards. A dealer or distributor accustomed to buying on the basis of discounts is vulnerable to your competitors’ inducements. Discounts are often passed on to the end-user at a lower retail price. Discounts can be easily matched by competitors Non-cash incentives represent minimal investment because the program funding is accrued basically from increased sales or purchases. If cash/rebates/free goods/discounts are such a great motivators, why aren’t they selling more or buying more?
  • 20. Why Incentives Work  Incentive programs can increase performance by up to 44 percent in teams and 25 percent in individuals, according to “Incentive, Motivation, & Workplace Performance,” a study by the International Society of Performance Improvement.  Fewer than one in four American workers is working at full potential; half of all workers do no more than directly asked; and 75 percent of employees say they could be more effective in their jobs, according to research by the Public Agenda Forum.  70 percent of unhappy customers abandon vendors because of poor service, according to the Forum Corp.  A 5 percent increase in customer retention can increase lifetime profits from a customer by 75 percent, according to The Loyalty Effect (Harvard Business School Press), by Frederick Reichheld.  Some 65 percent of executives believe that incentive programs using travel and merchandise are more memorable than those using cash; 60 percent of executives believe that sources of merchandise and travel are more helpful in creating an incentive program than are sources of cash, and 57 percent of executives believe that bonus payments are often regarded by employees as something they are due, according to the most recent “Survey of Motivation and Incentive Applications” by the Incentive Federation.
  • 21. Incentive Strategy Performance with Incentive (Move the Bar)
  • 22. Incentive Strategy  The Target Audience for Incentives should be the Mid-Range Performers.  This is the biggest audience and can have the most impact on overall objectives  Usually a company has: • • • • • 5-7% Top Performers 80-90% Mid-Range Performers 5-7% Poor Performers (short-term) Performance will increase at most levels Variable to market conditions (5-30%+)
  • 23. Sales Contest Length  Based on Sales Cycle  Then double Promotion Period  Flex Period Promotions: Allows Channel Partners to run the promotion to meet their schedule
  • 24. Budget Rules of Thumb  Sales: 1-2% if product margins less than 30% and 2-3% if product margins greater than 30%  Incremental Sales 4-7% if product margins less than 30% and 7-10% if product margins greater than 30%  Trial Offers can range from 5% to 20% of Sales
  • 25. Tracking Sales/Purchases o Sales Data  Track Sales by Distributor  Sometimes get sales by DSR o Claim Prize  Claim Form and Attached Invoice/PO  Claim Form and then we verify by Distributor Sales Data  Send in UPC’s  Payout when Distributor Pays Bills
  • 26. Sales Training Tools  Virtual Role Play: Allen Interactions  Product Quizzes with rewards for passing  Product Sample Kit/Display  Brand Awareness Advertising: Counter Mats, Mouse Pads, Wall or Desk Calendars, Mugs, Pens, Caps, Shirts
  • 27. Prizes Award Points are redeemed for the top-quality, namebrand items featured in the Awards Selection. .
  • 28. Prizes Amazon over 6 million to select from, web based, self admin Hand Pick Prizes/Premiums Individual Vacation: HMI Miles, HMI Vacation Packages Catalogs: Hinda, PFI, Quality and Certif-A-Gift, Top Brands RKM Game Cards SCA On line Game Pro Licensed Merchandise Gift Cards
  • 29. Merchandise vs. Cash  Cash satisfies basic needs which does not motivate behavior.  Cash is the currency of compensation and pricing. Use cash and it becomes part of an individual’s compensation package or a customer’s pricing program. Invariably, if you offer a cash incentive to any audience, internal or external, it becomes a benchmark against which future compensation and pricing issues get measured, leading to a condition known as “program addiction.” Because cash quickly gets mingled with other compensation or expenses (in the case of customer cash expenses)  Major Oil Company Study Summary  Non-cash outperformed cash by 46%  Non-cash: 37% increase in product mix  ROI  Cash: -20%  Every $1 invested = an $0.80 return  Non-cash: +31%  Every $1 invested = a $1.31 return
  • 30. Mazda Motor of America Situation: Budget $75 per vehicle Strategy Emphasize Value Goal: Stimulate B-Series Sales • 90% of Mazda Dealers carry at least one other brand of vehicle • After introducing many state of the art vehicles, light truck sales suffered Test: Incentive Cash vs. AwardperQ’s • Two randomly-selected test groups • Randomly assigned cash/non-cash rewards
  • 31. Mazda B-Series Truck Example 15.65 16 14 12 10 8 % Over Objective 6 4 2 0 2.13 Cash Districts AwardperQs
  • 32. Mazda B-Series Test Results Number of Districts Compared to Objective 35 30 25 15 20 15 10 5 21 1 16 1 10 0 Cash AwardperQs Over Objective Even with Objective Under Objective