spiff 101: sales incentives. best practices and case studies
DESCRIPTION
This presentation provides a high level background on Spiff programs as well as some practical examples. If you want to know how to motivate your sales force, then you should read this.TRANSCRIPT
Overview• SPIFF Definition• SPIFF Best Practices• Numantra examples• Eprize examples• Key Considerations
What’s a SPIFF?• Spiff1
• verb (used with object) Informal . to make spiffy (usually followed by up ): Let's spiff up this office with new furniture.
• Origin: 1875–80; perhaps v. use of dial. spiff well-dressed; see spiffy
What’s a SPIFF?• spiff2
• noun 1. a bonus or other form of remuneration given to retail salespeople for promoting the products of a particular manufacturer.
• verb (used with object) 2. to reward (a salesperson) with a spiff.
• Origin: 1855–60; origin uncertain
“Special Performance Incentive Fund”
1. Salesman sells company’s product to customers
2. Customers pay company for products
3. Company pays salesman
4. Salesman receives regular commission
5. Salesman receives SPIFF rewards
Why this works
TANGIBLE GOALSMEETS QUOTA
SPIFF Best Practices• When a manufacturer wants to gain market
adoption with a new product• When a retailer wants to liquidate some of its
inventory• To incent sales people to sell certain combinations
of widgets, etc.
SPIFF Best Practices• Budget of all programs should not exceed the total earnings of the
sales force by 3% .• Spiffs should be used for “doing something new for the first time.”• They should not be used to spike performance during a period.• They are narcotic in nature: the more you use them the more you
need to use them. Moderation of use with healthy hoopla is the best prescription for success.
• Avoid the use of “chance” to determine winners and payouts
SPIFF Best PracticesMost contests or spiffs are made up of three components:
•A Sales Driver•Measurement To Win•A Prize
SPIFF Sales Drivers• Sales Dollars, Revenue Dollars, Sales/Revenue For Target Products,
Attainment of Quota, Average Order Size, New Business- Renewals-Winbacks, Pipeline Built, Quotes/Proposals Sent, Quote/Proposal Close Rate, Telephone Calls, Face To Face Visits, Decision Maker Contacts, Voicemails Returned/Inbound Calls, Phone Time
• You may also want to tie your contest to sales behaviors. For example: Listening for sales reps using sales scripting or voicemail messages that you’ve coached them to use. Sales behaviors do drive sales, but are harder to track and measure.
SPIFF Sales Measurement• First, Most or Highest• Most improved or biggest gains in specific period, ex. day over day,
week over week• Best team performance• Most team members achieving drivers (ex. 70% of team, versus
30% of team)
SPIFF Prizes• If Reps have a very lucrative commission plan outside of the contest,
the prize for your contest will need to be lucrative enough in comparison to drive any results.
• For example, if my monthly incentive target is $10,000 and is tied to hitting my sales dollar quota, if you run a contest tied to the best voicemail messages and the prize is only $100 or a company golf shirt, I will probably not participate. It would be in my best interest to focus on driving sales toward my $10,000 payout. On the flipside, if the contest prize is too lucrative, I may stop focusing on my core responsibilities and just try to win the contest prize.
EXAMPLES
DentZone Proposed Sales Incentive Program
We’re going to keep dealership employees selling with the Dent Zone Sales Rewards program! First,
we’ll create a 12-month long sweepstakes program with multiple entries. In order to receive an entry,
the dealership employees will need to watch a video or engage with the brand.
We’ll also implement a sales reward program that will reward dealership employees for selling Dent
Zone services. We’ll verify sales via a unique code, or integration with a back-end server that tracks
all sales. For each sale and employee makes, they get a spin on the SPIFF Wheel!
The SPIFF Wheel is pre-populated with different cash amounts that employees will win – from $5 to
$500! The more you sell, the more chance of bringing in some huge cash!
Employees will receive monthly emails with valuable content and reminders to sell and participate in
the sweepstakes.
DentZone Proposed Sales Incentive Program
A.Monthly Emails. Employees will receive one email every month with great content and a reminder to sell more and participate in the Sweepstakes.
B.Sweepstakes Overlays. Low-hurdle participation element to keep employees engaged over the course of the year, and educated about the service.
C.SPIFF Wheel. High-level rewards keep players excited and engaged. They will sell more, knowing it increases their chances at larger rewards!
D.Virtual Punchcard. Virtual Punchcard is a continuity approach designed to reward multiple behaviors over a longer campaign period. Increasing rewards over multiple thresholds helps reinforce behaviors, drive sales, and maintain interest.
E-PRIZE EXAMPLES
Key Considerations• Goals and Objectives. What do you want to accomplish?
What activity or behavior do you want to incentivize?• Mechanics. What formats and channels will be used to
communicate the program and support program activity?• Logistics. How will the program be implemented? How will
we protect against fraud? How will incentives be rewarded? How will success be measured, tracked and reported?
