Why Sales Incentives Are Important

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Sales incentives rewards employees for meeting their targets, either for certain activities, such as number of demos presented, or for outcomes, such as revenue totals. They are essential to keep your teams motivated and productive and ultimately drive them to close more deals. These rewards also show workers that the company appreciates them and their contributions. Thus, both employees and employers benefit: The sales team receives attractive rewards, which motivates them to work harder for the company and help it thrive.

What Are Sales Incentives?

Sales incentives are rewards that employers give their sales teams to show appreciation. The recipient receives the incentive if they meet or exceed a certain goal. Sometimes, employers give sales incentives to individual sales team members. In other cases, an entire team may receive a reward.

A sales incentive can take numerous forms. However, they can be grouped into two main categories – monetary and non-monetary. Some of the most common rewards for sales teams include:

  • Public verbal praise. This may take place in a staff meeting or regular award event.
  • Written praise. The employer may send the recipient an email, letter, or card to recognize their efforts. They may also give written public praise in a company-wide newsletter or email. 
  • Physical gifts. Some employers choose to give a trophy, piece of swag, or other gift to recipients. 
  • Team events. Many employers choose to reward successful sales teams by hosting events to thank them. They may order food or take the team out for a meal, sponsor an office activity, or host a party or outing.
  • Financial bonuses. Some employers choose to reward their top sales professionals by giving them a cash bonus with their monthly pay. These bonuses act as a form of commission for successful sales.
  • Gift cards. Gift cards are a popular choice for sales incentives. They are easy to distribute and come in a range of values, making them a perfect choice for many circumstances.

READ MORE: What Are Good Sales Incentives?

Sales Incentives Motivate Workers

Motivating workers is extremely important for any business. There are three main reasons why a motivated workforce is so important:

  • The company remains competitive and earns more profit. 
  • Fewer employees leave the organization, which saves the company the money, time, and hassle of recruiting new team members.
  • Motivated workers are happy, and happy staff members are more productive. 

Sales Incentives Create More Loyalty

Companies need workers to be loyal to their brand. A dedicated workforce will reduce staff turnover while making employees more productive. When companies give rewards for effort and hard work, they show employees that you appreciate them. As a result, workers tend to work even harder, benefiting the organization in the long run. Even better, customers also benefit from a loyal workforce. Appreciated and happy workers go the extra mile for customers, which helps boost the brand’s reputation.

Sales Incentives Make Recruitment Easier 

Finding ways to attract top talent couldn’t be more important for companies today to stay competitive. Those that offer sales incentives find it easier to recruit talent to their team. Incentives are an attractive bonus that makes the company look progressive, staff-oriented, and good to work for.

Sales Incentives Promote Collaboration and Healthy Competition Among Teams

The best sales teams are the right balance of collaborative and competitive. Sales incentives for the best performing team help foster healthy competition between employees. However, incentives can also drive better collaboration among workers within a team. Therefore, they are a multifunctional tool that companies can use to their advantage.

Sales Incentives Foster More Ambitious Target Setting

All organizations benefit from ambitious targets and goal setting to help focus efforts effectively. Sales incentives help with reaching those goals and establishing the next objectives.

Top Tips for Designing Sales Incentive Programs

  • Plan incentives around what motivates specific teams.
  • Understand each individual’s strengths and weaknesses to set realistic targets.
  • Discuss with the company’s executives finance team to decide on appropriate budgets.
  • Keep the program simple for clarity.
  • Ensure that there are easily trackable benchmarks and metrics.

What Is The Best Sales Incentive?

There are many different types of sales incentives, and all have their advantages and disadvantages. Many organizations find that gift cards are the best sales incentive choice. They are versatile, since they come in different values and different types. Digital gift cards are also an ideal option for remote workers, because they don’t need to be shipped. BHN Rewards offers an extensive range of gift cards to give as sales incentives. Check out the selection here.