The implementation of an effectual incentive system for sales staff is a subject repeatedly requested on management training courses.

You are planning an incentive campaign for your sales team in order to win back a lost share of the market. The sales competition should give your salespeople the requisite motivation boost. The aim of the campaign (gaining at least one new client a week) and the participants have already been established.

Now you have to determine the criteria on which the salespeople are to be assessed.  You have now reached a very important point in your planning and the extent to which the incentive campaign will be a success for your company also depends on the type of assessment you choose.

There are two demands you need to meet:

The assessment system must be understandable to every participating salesperson. They must be able to work out beforehand what performance is attached to what prize.

Each salesperson must feel that they have the opportunity to attain the goal.

Following is a choice of conventional methods, which should give you a few ideas about how to configure your competition. They come from the planning themes "Incentive Campaigns in the Sales Department" in the Kienbaum-based bonus advisory company which offers companies advice and help in structuring sales competitions.

100 % - Plus - X System

Every salesperson who succeeds in exceeding the 100% basis (e.g. turnover in the last quarter) by a certain "x" percentage. The basis is an individual value for each salesperson, but the x-percentage is the same for everyone.

Critical analysis: Depending on the level or basis the salesperson starts on, a 5% increase, for example, may be very difficult or very easy to attain (inequality of opportunity). Since the number of winners cannot be fixed beforehand, it is impossible to plan for the bonuses in your departmental budget.

Top 10% System

Only the 10% of salespeople who achieve the highest turnover or other defined goals win.

Critical analysis: Those salespeople who no longer see an opportunity to win give up. It is important that they remain motivated as covered on management training courses.

Competitions based on this assessment system can in the long-term have a negative effect on the motivation of your salespeople. Furthermore, the results of the top 10% can, if seen in absolute terms, also be unsatisfactory.

Opportunity Mix System

In this system, as well as the ten salespeople who achieve the highest turnover, a further ten salespeople who have increased their personal turnover also win.

Critical analysis: Increased individual performance as well as performance in comparison to "competing colleagues" is assessed.

Top-area System

Under this system, the performance of salespeople in a whole sales area is assessed. This way, 60% of the bonuses are divided between salespeople in the office and field sales departments. Each receives the same bonus for team performance. The other 40% is used to reward individual performance.

Critical analysis: This system is very suitable for a team competition with salespeople in the office and field sales departments. By combining the team bonus with an individual bonus, you prevent certain salespeople relying solely on team work and neglecting to become actively involved themselves.

Qualification System

Participating in the competition can only be done once a certain threshold has been exceeded. Once the threshold has been reached, you can assess the salespeople on the basis of all the other systems (eg the Opportunity Mix system).

Critical analysis: By setting a threshold (eg minimum turnover for individual products) you are making sure that certain product lines are being pushed.

Product-Emphasis System

Depending on the aim of the competition, individual products (or client groups) are given different points. To win, a salesperson has to reach a certain number of points.

In addition, you can also set a minimum turnover for a product.

Critical analysis: With this system it is possible to push various different products or clients within the framework of sales strategy.

Profit System

The winners are those who reach their goals first. A timescale is set during which salespeople can benefit from the profit 'pot' until it is empty.

Critical analysis: This system is suitable for products which need accelerated sales. However, as long as the pot still has profits to share out, then sales people will remain motivated.

In order to achieve a high level of results, implementing the right incentive scheme is important and this subject is covered on good management training courses.

Author Richard Stone is a Director for Spearhead Training Limited that runs management training courses that improve business performance. You can view more details at => http://www.spearhead-training.co.uk