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Does Changing Compensation Increase Sales?
A conference attendee asked how she could change the compensation for her highly paid, salaried producers, in order to provide the incentive to sell more. Read this article to learn the answer to this question.

Other reward plan Related Articles

USING REWARD PROGRAMS TO CREATE LOYAL CUSTOMERS
Customer reward programs were first introduced by the airlines more than a decade ago. Since then, businesses ranging from bookstores to coffee shops to credit cards have implemented reward programs. Properly implemented reward programs create loyal customers. However, many reward programs simply don’t work. The rewards are either ineffective motivators or too costly to be practical. Often reward programs and short-term promotional programs conflict, turning off loyal customers and attracting only less profitable price-switchers. In order to avoid the traps that can sour customer relationships or drain scarce resources, it makes sense to examine the fundamentals of developing a successful customer reward program.
You Get What You Reward
More often than not an organization says one thing in its literature, on nicely formatted signs in hallways and conference rooms, but unfortunately does not practice what it preaches. As your organization decides what it wants its culture to be, look closely at what it will reward. Remember…You get what you reward.
New Study of Corporate Rewards Program Proves...
Considering that a recent study from the Incentive Federation has shown that a good corporate reward program can improve sales and production as much as forty-four percent a company can hardly afford not to have a corporate reward program.
Incentives and Brand Loyalty: A Winning Combination
Reward points are used by credit card companies, gas stations, book stores, airlines, and almost any large chain in order to reward the loyalty of their client base. These companies understand the importance of brand recognition, and incentive-based compensation for being a loyal customer. These points are redeemable and can be applied as credits or used as a form of payment.
Customer referral program
There are many businesses that would argue their best source of clients is by referral and yet if you ask what they do about this ‘Best Source', most would also say nothing. Do you reward people for referring customers to you and do you have an organised program to encourage this form of referral? If you answered 'NO‘ to this question then I would ask you to take a moment to think about your answer for a moment and to perhaps discuss changing how you deal with this aspect of your business with your business partners and employees. Firstly, you could make a decision to reward those people that refer clients to you by way of a financial reward either with a cheque or a voucher. Alternatively, you could reward them with your own products or services, by way of a discount on future purchases or by giving items away.
The Plan was a Success but the Business Died
Planning is a good thing. Don't think I'm saying it's not. We have to plan. The challenge is that human nature, and many of our reward systems, tend to reinforce the plan as the "be-all and end-all." We forget that the plan is a means to an end. The end is profitability, or however we define success.

Rebuilding your reward strategy
In the middle of change it can be easy to overlook the impact that restructuring has on reward strategy. We all know that having up-to-date and flexible people practices is vital to support business objectives, but many businesses forget to review their reward approach as their business grows and changes. Here's our six stage model for checking that your reward systems are still up to the job:

Why Rewards Cause Problems #6: Rewards Undermine Interest
We do things because we are interested in them, generally not to get some kind of tangible reward. Organizational reward systems often overlook the very powerful intrinsic motivators of their workers, and get only a tiny fraction of the discretionary effort that is available. The attached article gives some insight on this phenomenon.

Personal Recognition and Appreciation is an Inside Job
Like improvement efforts, effective reward and recognition is an integrated process, not a bolt-on program. Since you can't make your team or organization into something different than you, it has to start with you. Whose needs are your recognition and reward systems designed to serve? What are the goals? Are they to manipulate, control, and "motivate?" Or do they build an atmosphere of helpfulness, appreciation, and high energy? How do you know? As with beauty, quality, or customer service, reward and recognition are in the eyes of the beholder.

Recognition Do's and Don'ts to Inspire and Energize
Like improvement efforts, effective reward and recognition is an integrated process, not a bolt-on program. Since you can't make your team or organization into something different than you, it has to start with you. Whose needs are your recognition and reward systems designed to serve? What are the goals? Are they to manipulate, control, and "motivate?" Or do they build an atmosphere of helpfulness, appreciation, and high energy? How do you know? As with beauty, quality, or customer service, reward and recognition are in the eyes of the beholder.

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