When it comes to maximizing rewards to make the most out of a sale, there isn’t a better system than a SPIFF system. SPIFF refers to a salesperson getting a bonus or a reward for every sale they make. The reward is paid out by the product manufacturer or by the company that employs the salesperson. But the main thing to note is that SPIFFs are an effective way to motivate the salesperson to do their job better. In this article, we are going to dive deeper into the subject and even tell you how to create one. So with all that said, let’s start.
Why Are SPIFFs So Effective?
First, let’s start with why the system works so well.
Excellent For Making Sales
Door-to-door and telephone marketing are still very much alive. A lot of companies still rely on these methods to sell their products. And the people that are responsible for making the sale are called salespeople.
Naturally, this system needed a bigger incentive. And that’s where SPIFFs came to be. By offering the salesperson a small reward for each sale they make, they get more motivated to do a better job. This system works both ways as the company makes a profit for every sale the salesperson makes, while the salesperson makes a small bonus.
It’s safe to say that SPIFF is an excellent system that drives sales.
The more a company sells its products, the more they get their brand out there. This is a simple formula that works every time. A company needs to have a long-term strategy to compete with the industry. And there isn’t a better way to achieve that than by creating an incentive for their workers. The more hard work the salespeople put in, the more your product goes into households. The more people see your product, the bigger the chances to add long-term visibility and brand recognition in the eyes of the consumers.
And if there is anything we know about 21st-century marketing is that every customer is a potential brand ambassador.
Excellent For Resellers
Reselling is the act of selling someone else’s product. And we’re seeing more and more companies getting into this type of work. The great thing about reselling is that obtaining the products can be done in multiple ways. One of those ways is by agreeing on a SPIFF with the manufacturer. By agreeing the manufacturer pays the SPIFF to the salesperson, you will only be paying to “keep the product” as opposed to paying for shelf space.
The manufacturer will still get their money but pay a small fee to the salesperson. These reward programs can be a great way to drive sales. Building a reward program, on the other hand, might be more difficult than originally anticipated. Luckily for you, you can request a demo with Level 6 Incentives and help them create a reward program that will ultimately drive sales and rack up revenue.
How To Successfully Create SPIFF
With both short-term and long-term benefits, it would be a no-brainer to use a SPIFF system to grow your business. Here is how to do create one.
1. Define Your Objective
The whole point of reward programs is to ultimately benefit the company. But creating a SPIFF without a goal in mind will lead to disaster. That’s why you need to define what your objective(s) are. Is your objective long-term visibility or short-term profits? Whatever they are, they need to be defined.
2. Align the Objective With the Reward Program
This is where you combine the objective with the reward program. By offering your salespeople a reward for every sale they make, you are motivating and energizing them to meet your company goals.
3. Placing A Time Period
SPIFF programs aren’t meant to last for a short amount of time. Although there are some pretty successful examples of that, you will need to give your salespeople a long-term plan to keep them motivated. If they’re only going to be potentially reaping the bonus rewards for a month, then there isn’t much to get motivated for. But if you place a time period of a year, then your salespeople got a lot of time to make a lot of bucks, which ultimately motivates them even more.
4. Define A Target Audience
The number one rule in marketing is to define your audience prior to the launch of your campaign. And the case is exactly the same with SPIFF. If you miss your target audience and send your salespeople to “sell” the product to the wrong demographic, then both you and your salespeople will miss out on the short-term and long-term benefits.
The campaign, simply said, will be a failure if you miss your target audience. So make sure to get this one right.
5. Do Plenty Of Research
Research is always needed when creating a SPIFF reward system. You’ll need to do research on what bonus to give your salespeople, what is your target demographic, etc. On the subject of rewards, do know that cash doesn’t always have to be the answer. Sometimes, you can offer various options that align more with each individual. But if nothing else works, cash is ultimately the go-to option.
6. Training Your Sales Reps
If you want to sell someone something, you will need to do a good job of convincing them that the product will benefit them. To do that, you will need to become a master salesperson. Even if you are quite new in the game, training a few employees to be better sales reps will benefit both them and your company.
7. Have A System In Place That Will Run Everything
We’re living in 2022 where we can literary come up with any software to help us achieve our business goals. And one way to achieve business goals is to be organized. Namely, you will need to either buy or come up with an automated system that will keep track of everything. This system is meant to streamline the operation and help keep track of every individual sale.
Creating a SPIFF is no easy task because you will need to take into account a lot of factors. If you’re having a hard time doing that, you can always get help from someone else.