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Additional resources for Sales Rewards and Incentives (Sales)

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However, care needs to be taken not to produce a theme and program so bland and universal that it means nothing to those outside the inner circle of successful regions. As with all types of marketing there comes a point when the savings on origination and creativity are less important than getting the sales team enthusiastic and engaged. The most highly structured and researched global program is no good at all if it does not ultimately deliver improvements in the sales process. BEST PRACTICE EXAMPLES There are presently so few best practice examples of global or indeed cross-border programs that it would be misleading to present a single case history as it would not be typical.

Reward solutions A major factor in the distribution of rewards to overseas participants is the cost. Often the postal or delivery charge far outweighs the actual cost of the item being sent. One solution is to arrange to have goods delivered locally from within the participant’s own country, so the choice of reward needs to be available locally. If you are running a pan-Europe program with outlets in seven or eight countries, the administration costs could be enormous and far exceed any incremental benefit obtained from running the program in the first place.

Any improvement above the break-even point is incremental profit. In practice well-managed sales incentives produce incremental sales of between 10% and 40% depending on the current trading conditions. It is always well worth creating several scenarios for the planned incentive campaign so that the finance department understands the implications of over-delivery as well as under-delivery. An incentive scheme that creates an incremental increase of 100% may be good news for the sales winners but less effective for the organization if the increase in products for delivery to customers cannot be achieved within a reasonable time-frame.

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