Discover innovative strategies to motivate your sales team. Learn about reframing bonuses, non-cash incentives, and connecting company mission to personal values.
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If you've ever led a sales team, you know that motivation can be as volatile as the stock market. One week, your team is on fire, smashing quotas and high-fiving in the hallways, the next, they're struggling to muster the enthusiasm to send a single follow-up email.
So, how do you consistently motivate your sales team?
Through our relationships with sales leadership at dozens of companies, we’ve studied the academic research into the psychology of motivation and witnessed the real world tactics that drive successful sales teams.
It turns out, motivation goes beyond “rah-rah” speeches and pizza parties. Here’s what we’ve found works best.
One approach to building a motivated sales organization involves rethinking the traditional bonus structure. Instead of viewing bonuses as purely transactional rewards, consider reframing them as "gifts" to create a stronger emotional connection and boost employee performance.
Research shows presenting a reward as a gift, rather than a typical bonus, fosters goodwill between a company and its sales people. This shift in perspective leads to increased motivation and improved results.
In one study, researchers provided cash to employees but framed it as a gift with no strings attached; there was no quota to meet to receive the money.
The study found the timing of the gift directly influences how sales representatives respond.
When given at the start of a sales period, reps tend to view it as a reward for past individual performance. This can actually lead to a decrease in motivation, as they may feel they've already been compensated for their efforts.
Conversely, when reps are told they will receive a gift at the end of a period, it motivates them to work harder. This creates a sense of reciprocity, where they feel compelled to earn the upcoming gift.
Sales managers should use this approach sparingly to maintain its impact.
Sales floors thrive on energy and momentum. When a lull hits, it can quickly spiral into a productivity drought — meetings don't get booked, and deals don't close.
To combat these slumps and reinvigorate your team, the friendly competition of sales contests can be a powerful tool. They create immediate excitement and urgency and tap into salespeople’s natural competitive spirit. You can budget for these sales contests as part of your largest sales performance incentive fund, or SPIF.
Some ideas for quick, easy contests include:
The best sales contests often focus on inputs— that way, you motivate the work and the effort rather than just the result.
Keep the rules for your contest simple and fair. Reward winners with public recognition and meaningful prizes.
While monetary rewards are a staple in sales motivation, research shows expanding beyond financial incentives can yield surprising benefits.
Non-cash rewards include things like vacation points, merchandise credits, or experiences like concerts, sports events, or travel.
Interestingly, reps often value these non-cash incentives higher than their actual cost to the company.
The key is to allow reps the flexibility to choose their own reward based on their personality and interests.
We suggest taking the following into consideration as you explore implementing non-cash incentives into your program:
By expanding beyond traditional cash bonuses, you can create a more engaging and effective incentive pay program that motivates your team in multiple ways.
In the high-pressure world of sales, where quotas loom large and competition is fierce, the power of a simple "thank you" is often underestimated. Yet, research shows that expressing gratitude can be a potent motivator, fostering loyalty, boosting morale, and even improving performance.
A study by Gallup found just one in four employees felt recognized or praised in the past week.
Using Bureau of Labor Statistics data for economic worker output, Gallup estimates companies could gain $9,200 in value from improved employee productivity if they doubled the number of employees who felt recognized.
Here are some effective ways to incorporate gratitude into your sales team's motivation strategy:
No matter how you choose to recognize your high-performing sales teams, be timely with your gratitude. That helps connect the praise to the action. You must also make sure your gratitude is sincere. An inauthentic thank you can backfire harder than not saying anything at all.
A company culture built around employee recognition acknowledges achievements of all sizes. This approach boosts morale and reinforces positive behaviors that lead to long-term success.
Recognize sales staff who find innovative ways to streamline processes or improve efficiency. This could be anything from developing a new prospecting technique to creating a helpful sales tool.
Don't overlook the steady performers who consistently meet their targets. Their reliability is invaluable and deserves recognition. You should also celebrate when a team member achieves a personal record, even if it's not the highest on the team. This encourages both team building and growth on an individual level.
Use a mix of verbal, written, and tangible forms of appreciation. Sometimes an appreciation email is the most appropriate approach. For bigger wins, you might consider a flexible, personalized monetary reward like a Giftly Card.
When salespeople see their personal goals and beliefs reflected in the organization's broader mission, they're more likely to enjoy job satisfaction, be engaged, and be driven to succeed.
According to a Culture Partners study, 7 out of 10 employees would leave for a more fulfilling role that gives them a sense of purpose. A third of those respondents said they would still take the more fulfilling role even if it paid less.
Here's how to effectively connect your company's mission to individual values:
Regularly reinforce the company's mission and its importance. Help your sales team understand how their work contributes to this larger purpose. For example, if your company sells healthcare software, emphasize how each sale improves patient care and potentially saves lives.
Show how hitting sales targets directly contributes to the company's business goals and mission. Use concrete examples and data to illustrate this connection. For instance, "Our Q3 sales allowed us to fund three new clean water projects in developing countries."
When acknowledging achievements, tie them back to the company's mission. This reinforces the importance of the mission and how individual efforts contribute to it.
Allow sales team members to participate in mission-related activities beyond their sales roles. This could include volunteering for company-sponsored charitable events or joining committees focused on corporate social responsibility initiatives.
Implement these strategies by incorporating mission-oriented discussions into your regular sales meetings. Consider creating a "mission moment" at the start of each meeting where you share a story or statistic that illustrates the company's impact.
Remember that this alignment process is ongoing. Regularly check in with your team members to understand their evolving personal values and how they relate to the company's mission.
It's easy to fall into the trap of only rewarding closed deals and met quotas. However, a more nuanced approach recognizes effort and progress can lead to a more motivated and resilient sales team.
Recognize improvements in metrics like number of calls made, meetings scheduled, or proposals sent. Also reward sales reps for things like completing sales training modules, streamlining processes, securing referrals, or improving their pitch. These effort-based KPIs often lead to eventual sales success.
When implementing these strategies, be transparent about what constitutes valuable effort. Clearly communicate which activities and behaviors will be rewarded, and why they're important to the overall sales process.
The 2024 LinkedIn Workplace Learning Report found 7 in 10 people say learning improves their sense of connection to their organization. Additionally, 8 in 10 people say learning adds purpose to their work.
Sales leaders should focus on providing professional development opportunities because those opportunities lead to stronger employee engagement and higher employee retention rates.
Work with each team member to create a personalized growth plan. This should include both short-term and long-term sales goals, as well as specific actions to achieve them. Then, invest in a variety of learning tools such as online courses, webinars, seminars, workshops, conferences, and industry certifications. Platforms like Salesforce Trailhead or LinkedIn Learning offer a wealth of sales-specific content.
You should also pair less experienced team members with seasoned sales professionals. This not only helps newer reps develop faster but also gives experienced reps a chance to develop leadership skills.
Provide opportunities for team members to take on projects outside their usual responsibilities. This could involve leading a new initiative or collaborating with other departments.
Consider tying professional development to your reward system. For example, completing a certain number of training hours or achieving a new certification could be linked to bonuses or promotions.
By encouraging professional development, you're not just improving your sales force's skills—you're investing in their careers and fostering loyalty.
Once you’re ready to adopt a new approach to boost sales team motivation, you should start by assessing your current approach and see what’s working — and what isn’t.
You should incentivize both short-term and long-term sales results, as well as effort. Include a mix of monetary and nonmonetary rewards in your program. And makes sure all your rewards are flexible and personalized.
This is where Giftly can play a pivotal role. By offering flexible, personalized rewards, Giftly allows you to tailor your recognition to individual preferences. Whether it's celebrating a major deal, acknowledging consistent effort, or supporting professional development, Giftly Cards can be customized to suit various motivational strategies.
Use Giftly for both spontaneous acknowledgments and planned achievements. Giftly allows you to scale your rewards appropriately, from small gestures of appreciation to significant milestones.
Revamping your motivation strategy is an ongoing process. Interested in trying Giftly as a reward for your next sales contest or to acknowledge a recent win on your team? Let’s talk about how Giftly can enhance your motivation strategies to create a more personalized, effective, and meaningful recognition program for your sales team.
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