Sales incentive programs are proven to improve sales performance and motivate sales teams to exceed their targets — quarter after quarter.
A Sales Incentive Plan (SIP) is a business tool used to motivate and compensate a sales professional to meet goals or sales metrics over a specific period of time, usually broken into a plan for a fiscal quarter or fiscal year.
SIPs are used to incentivize sales professionals where total dollars sold is not a precise measure of sales productivity. A SIP takes into account the complexity and length of the sales process.
A SIP is very similar to a commission plan; however, a SIP can encompass sales metrics other than solely quantitative measures, such as the number or value of goods sold.
SIPs take into consideration sales metrics typically in the form of sales quotas, new business opportunities, and management by objectives (MBOs) and independent action of the sales professional — normally used in conjunction with a base salary.
SIPs encourage and compensate each member of the sales team as he or she contributes to the team's ability to sell. It is not uncommon for the members of such teams to be located in different physical locations, often working in different countries.
SIPs take everyone into consideration, no matter their location, keeping track of all their hard work and efforts — from product introduction in one location to its purchase in another.
Contact us today and let us help you build a custom SIP that motivates your team and drives measurable results.