Professional Documents
Culture Documents
Training, Motivating, Compensating and Leading The Sales Force
Training, Motivating, Compensating and Leading The Sales Force
Salespersons viewpoint To have regular and incentive scheme To have a simple plan To have a fair payment plan
C) Combination of salary, commission and/ or bonus salary plus commission, salary bonus, salary plus commission plus bonus, and commission plus bonus. Statistics 68% of all companies use a combinational plan to pay their salespeople. - The incentive portion of combinational plans has been increasing over the past 20 years and is now around 40%. If companys short term objective is to increase its sales and profit substantially the incentive portion should be more. The salary part should be large if the company wants to focus more on advertising customer service and team selling to achieve sales volume objective.
Bonus
It is a lump sum payment for an above average performance. Bonus can be offered in the form of cash, merchandize or free travel. Ex; Infosys paid bonus of $1000 to each employee to celebrate 1 billion sales revenue. Ex: Cognizant gave I-pods costing Rs. 20,000 each to 18000 employees. Ex: Speedera (now Akamai) took its 60 employees with families to Hawaii.
Salary plus commission plan Ex; IBM partly rewards salespeople on the basis of customer satisfaction as measured by customer surveys. Salary plus commission plus bonus plan Ex; Siebel systems pays a base salary plus commission plus a quarterly bonus based on customer satisfaction surveys for each salespeople.
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Leadership styles
1) Transactional leadership usually describes those supervisory activities that relate to the day to-day operations and control of the sales force. 2) Situational leadership in a crisis situation like recession, the sales manager should clearly communicate the vision, objectives and strategy to the sales force and demonstrate how to get orders in such situation leading by example. Another situation motivating a long experienced salesperson whose performance is below expectations.
Leadership skills
1) 2) 3) 4) Communication skills Problem solving skills Interpersonal skills Supervising salespeople direct supervisory methods and indirect supervisory methods Direct supervisory methods include telecommunications, sales meeting, personal contacts, coaching Indirect supervisory methods include sales reports, compensation plan, sales analysis, expense account/reports.