To you, mentioning Millard Fillmore challenges your knowledge of past Presidents. To very old veterans of Xerox, it conjures up recollections of unpleasant orders and more.
Millard was a pig. A “real” hog, swine. Millard was used in a sales motivation program. The worst performing regional in each quarter would have to house Millard in their regional offices for the next quarter.
This was incredible motivation for the sales bottom dwellers to improve performance and get the pig out of their office. Nobody wanted to bring home the bacon. Every once in a while, negative motivation works but it is tricky to accomplish. Witlessly, many sales managers conjure up programs, get their team all excited, they accomplish their goals in pumping up the volume and are clueless that they leave a significant portion of their salesforce “demotivated”. The negativism stems from the disappointment of losing. The disappointment stems from the efforts put forward only to be outperformed by a top gun. In a given contest, if one sales associate is pitted against another and not themselves, then the risk of being disappointed and demotivated to participate in subsequent programs is great.
When structuring a sales incentive program, it is critical to decide if the ultimate goal of management can be achieved by a challenge, not a competition. If the program is a competition and if the goal line is a singular prize, then it won’t be long before salespeople drop out of the race leaving top gun to win. The same holds true for multi top gun winners. If, however, the program is a challenge where the individual is competing with him or herself, the motivation is internal, the competition is naught and the agony of defeat is less conspicuous.
Salespeople face enough rejection and defeat from external influences, specifically their prospects, a poorly structured incentive program only adds to self-esteem issues.
While it is true not everyone can be a winner, it is equally true that losing anything is a demotivator. When structured as a sales incentive program for your clients, take careful consideration of the collateral damage that can occur with a competition. The client may have a budget that cannot afford to reward multiple winners but, if the result is an even more significant increase in sales, the multiple award-winning style program will return even greater sales and return the increased investment.
Every salesforce can be divided into identifiable segments. Typical are top performers on one side and low performers on the other. A poorly structured incentive can have affect on both. Top guns are often so competitive they can build resentment if they do not hit #1. True, it can mean even a stronger performance in subsequent drives, but it can also lead to a resignation from competition and a cynicism. Those on the bottom are well aware of the competition and can make a superficial attempt to compete before withdrawal and disappointment. There is no consolation in losing. It isn’t Little League where a child is consoled by a parent and even rewarded in a loss. Salespeople need a high degree of self esteem for success and a bad program can damage their special ego.
While tangible rewards and merchandise are great motivators, if the client can not stretch a budget for all to earn a gift, etc. then have them consider some form of plaque, certificate or trophy for every achiever.
Joel D. Schaffer, MAS is CEO and Founder of Soundline, LLC, the pioneering supplier to the promotional products industry of audio products. Joel has 48 years of promotional product industry experience and proudly heralds “I was a distributor.” He has been on the advisory panel of the business and marketing department of St. John’s University in New York and is a frequent speaker at Rutgers Graduate School of Business. He is an industry Advocate and has appeared before the American Bankers Association, American Marketing Association, National Premium Sales Executives, American Booksellers Association and several other major groups. He has been a management consultant to organizations such as The College Board and helped many suppliers enter this industry. He is a frequent contributor to PPB and Counselor magazines. He has facilitated over 200 classes sharing his industry knowledge nationwide. He is known for his cutting humor and enthusiasm in presenting provocative and motivating programs. He is the only person to have received both the Marvin Spike Industry Lifetime Achievement Award (2002) and PPAI’s Distinguished Service Award (2011). He is a past director of PPAI and has chaired several PPAI committees and task forces. He is a past Chair of the SAAGNY Foundation, Past President of SAAGNY and a SAAGNY Hall of Fame member. He was cited by ASI as one of the 50 most influential people in the industry.