SPIFF sales programs are short-term incentives designed to encourage changes in the behavior of sales teams in order to increase profits. Such sales incentive programs reward partners for improved performances, and, if implemented correctly, help increase partner loyalty. In general, SPIFF incentive programs are introduced during a product launch or when older products need to be cleared from the shelves. SPIFFs are also used to push sales of the most popular and profitable products.
Below is our list of recommendations for building a successful SPIFF sales program.
1- Clearly define your objectives
Usually, the ultimate goal of any SPIFF incentive is to increase profitability and market share. However, you can also identify a second tier of goals for a more tailored incentive. First, determine what you want to get out of the program, and then clearly communicate those expectations to your team.
2- Align your goals and objectives with the incentive program
A rewards program is intended to energize your sales team and your channel partners. Your SPIFF will not get much traction and do little to motivate if your goals and tactics aren’t on track with those of your channel partners. Coordinate and schedule your SPIFF to run alongside any channel marketing ad campaigns or product promotions.
3- Place a short and reasonable time period on the duration of the program
The point of implementing a SPIFF incentive program is to keep the team motivated. Incentives become less impactful if you have them ongoing for lengthy amounts of time.
4- Define your target audience
It’s essential to properly target your SPIFF to the appropriate audience to get participation and buy-in. Once you learn your audience, you can tailor a program to their specific needs.
5- Take advantage of advanced segmentation
Advanced segmentation allows you to target your SPIFF incentive program to reps based on established criteria (i.e., geographic, behavioral, firmographic, etc.).
6- Explain the rules
Clearly communicate to your sales reps and partners what they need to do to maximize their earnings. Then, check for understanding to eliminate any disconnects.
7- Research to determine the ideal incentive
After all, incentives are meant to drum up excitement and motivate success. Your sales team is comprised of diverse individuals, so provide various options for rewards. If you can’t determine the perfect incentive, cash always works.
8- Train sales reps and partners
Your sales reps and partners need to know how to properly sell the products eligible for the SPIFF incentive program. Thoroughly educate them on the marketing tactics you plan to put in place to promote your products.
9- Generate enthusiasm and participation with a simple yet effective method of marketing your SPIFF
Gamification and holding contests are great ways to promote friendly competition and keep your rewards program fun and engaging.
10- Provide a secure portal for submitting their claims
A tool such as CMR’s SPIFF Management software provides an automated solution for sales reps and partners to streamline the entire SPIFF management process, including submitting claims.
11- Offer quick turnaround on earnings
You want sales reps to up the ante to receive incentives, so you shouldn’t be slow when it comes to doling out SPIFF rewards. If you want to keep morale high and spirits motivated, it’s essential to get reps their reward as soon as possible.
12- Provide clear and easy-to-understand performance reports using simple metrics
Performance metrics are not effective if no one understands how to interpret the results.
13- Provide SPIFF’s impact data on ROI, sales rep performances, customer behavior, and customer satisfaction
At the conclusion of the SPIFF incentive period, take inventory of hits and misses to discover how you will enhance your program to achieve optimal results.
14- Communicate, communicate, communicate
Lack of communication can be the downfall to any workflow and process, especially a complex SPIFF incentive program. Establish clear and open lines of communication, and schedule regular opportunities to get and address feedback.