As sales incentive and motivation experts, Full Circle Motivation has long known of the power of their combination of tools to deliver positive ROIs. In fact, the lowest percentage ever delivered in any sales incentive scheme was +13% against the control period. Furthermore, their case studies prove the point in a fairly dramatic way but this is the first time that independent research has supported Full Circle’s internal observations and performance figures.
A recent study published by the Incentive Research Foundation on April 9 measured the performance of non-cash rewards and incentives for sales staff and found that the top-performing companies cited these schemes as a “vital component” of their success and a key contributor to ROIs.
The research deliberately focused on “Best-In-Class” firms – the top 20 per cent of companies – and investigated how they utilised the non-cash incentive scheme in sales performance management. The results were striking.
Topping the poll of most effective rewards was incentive travel: 100 per cent of the companies surveyed used this method to motivate their sales force and considered it highly effective.
Performance measurement of sales recognition programmes for internal sales employees also yielded strong results. Firms using these programmes demonstrated team quota attainments that were 14.8 per cent higher than firms which didn’t, and customer renewal rates which were 5.9 per cent higher. Victor Tardieu of Full Circle Motivation also adds that constant communication of performance, recognitions and awards, throughout the life of the incentive scheme is critical to participant momentum.
Best-In-Class companies were also 75 per cent more likely than less successful firms to offer their sales force incentives in the form of company-sponsored events.
But a key finding was that these highly successful firms were very canny about how they set up their non-cash incentive: Top-performing firms outsourced the management of their incentive scheme to expert providers. This should come as no surprise; specialists in the incentive industry like Full Circle Motivation use tried, tested and measureable programmes. Companies that outsourced incentive management showed substantially higher lead conversion rates than those that didn’t (30.4 per cent versus 23.9 per cent).
For companies that want highly motivated and successful sales teams, the message is clear: Choose incentive schemes that are carefully selected and managed by industry experts like Full Circle Motivation if you really want a strong return on ROIs.