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5 Effective Strategies To Motivate Your Sales Team

by Leadership News
1 year ago
in Business
Sales Team
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A high-performing sales team is the cornerstone of any thriving business. The team is responsible for engaging customers, understanding their needs, and offering your company’s product or service as the perfect solution to address the identified problems.

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Members of a sales team need to be motivated to be high-performing. Unfortunately, mere words printed and pasted on office walls or daily text of motivational quotes will not do the magic.

This comprehensive guide highlights budget-friendly and effective strategies to motivate your sales team and increase revenue.

Categories of sales team members

Members of a sales team can be divided into three categories: stars, laggards, and core performers.

Stars are usually self-motivated. These rainmakers have a way of navigating different challenges to make sales. However, the performance of this kind of salespeople can decline if they feel less compensated.

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For instance, some sales executives, in their bid to reduce the overall expense of sales force compensation, cap compensation once salespeople hit certain performance targets.

This can discourage stars on your sales team from going above and beyond to deliver more sales.

On the other hand, laggards need some prodding and support to perform, while the core performers are in-between being rainmakers and laggards. They make up the largest percentage of your sales team and will deliver if properly motivated.

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1. Set realistic and flexible targets.

Star salespeople are more likely to become complacent once they hit their target, especially if the company does not offer extra bonuses for outperforming targets.

Core performers, on the other hand, find it easy to hit their targets during bullish months and almost during bearish months.

However, a report by the Harvard Business Review indicated that setting a multi-tier target significantly boosted the performance of core performers. In fact, they outperformed the rainmakers.

Star performers were mostly interested in the highest tiers, while laggards were comfortable achieving the first tier.

To ensure a general improvement among all team members, you may set the most realistic sales as the first tier and a closer one that is also attainable for other tiers. With such a strategy, even the laggard will still deliver enough sales to drive revenue.

 

2. Deploy effective employee recognition programs

Employee recognition programs can help retain your best talent, attract top talent, and significantly boost sales performance.

It helps build a sense of community and culture in your company. Surprisingly, this strategy is easy to implement. It can be as easy as presenting trophies to your salespeople for achieving certain milestones, such as reaching a sales target or years of service.

However, to be effective, the recognition must be honest, authentic, and structured to reflect how each employee wants to be appreciated. This employee feedback culture should also be frequent and consistent. Aside from being praised by managers, workers also feel appreciated and productive when their team members recognise them.

 

3. Implement transparent KPIs

Laggards are usually new hires that need training. Implementing Key Performance Indicators (KPIs) for your sales team based on certain conditions and criteria can promote transparency.

For instance, you may design certain courses for salespeople generating low sales. The people above the sales target will be motivated to avoid falling into the category considering the classification. At the same time, you get to offer the laggards the required skills to improve their sales skills.

Nevertheless, salespeople are motivated by different things. Set daily, weekly, and monthly goals for your team. You may offer bonuses for achieving these goals. This is more effective than an annual bonus.

This periodic KPI evaluation and bonus can have a positive impact on all categories of salespeople, including the laggards.

 

4. Launch contests with multiple winners

Typically, contests are designed to reward the best performer. While it may motivate your sales team, the benefit might not be optimal.

Core performers and laggards may become less motivated to participate, as they usually have the notion that star performers will surely win. Meanwhile, the stars will be unbothered to increase their efforts, as they are certain to win with ease.

To increase the impact among all team members, announce that there will be multiple winners for the prize. This can motivate laggards and core performers, as they will likely feel they stand a chance to feature among the numerous winners. Stars will also not want to miss out, as they fear missing out on the top spot.

 

5. Be genuine and encourage trust-based relationships

Do not try to motivate your salespeople by lying about the state of the company’s financial situation. While pressure can be a motivator, its effect is short-term and can cause long-term damage.

Your team needs to trust you. When you promise them a prize, do not backtrack on your promise. Be honest and transparent. Encourage trust-based relationships among your team.


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