Sales Management

Motivating Sales People

Topic 22

Sales Motivation is Critical

• Influenced by Sales Manager• Even More Important for Salespeople• Freedom of Supervison• Lack of Faith in Themselves• Lack of Faith in Their Brands

Motivation Includes

• Drive to Initiate Action on a Task• Drive to Put Forth Sufficient Effort on a Task• Persistence to Maintain Effort Over Time

Motivation is INTERNAL

• Manager Influences• Manager Cannot Create• Can Increase Chances• But Easier to Destroy• People are not Motivated =

Maslow• You have had this before• Physiological and Safety/Security Needs are

First – For Good Reason• What Motivates Changes Over Time (and

Environment)• Salespeople satisfied by pay are less interested

in higher pay

Herzberg

• Dissatisfaction must be removed before motivation

• Perceived Inequity in Pay, Company Policy, Working Conditions or Relationships kill motivation

• Removing Dissatisfaction Motivation

Herzberg #2

• Motivation is associated with:– Achievement– Recognition– Challenging Work– Advancement

Herzberg Useful?

• Have Clear Policies and Procedures– Don’t have to be equal but must be seen as “fair”

• Pay is not a great motivator – but is a great demotivator (Do Not Make Salary Info Public)

• Non Pay Factors are Key to Motivation

Expectancy Theory

• Fancy Psych Professor Words• Follow Along in the notes

Expectancy Useful?

• Working Stupid Kills Motivation• If Salesperson Thinks the Goal Cannot Be

Reached they Give Up or Cheat• The Performance + Goal Link is Essential• Are The Rewards Even Important to the

Individual?

Expectancy Useful?

• Working Hard & Smart Are Both Critical• Skills Training is Vital• Do Not Ever Over-Promise• Be Sure Everyone Has the Chance to

Succeed• Give Rewards People Want

Goal Theory

• Difficult Goals, if accepted, Have the Best Performance

• Difficult & Specific Goals are Optimal• Feedback on Performance Towards the

Goals is Essential• Individual Must Think Goal Can Be Reached

Goal Theory Useful?• Specific Sales Quotas are Good• Salespeople Must Think the Goal Can Be

Reached – Must “sell the goal”• Put goals in Writing. Tie Performance to

Rewards• Give Regular, Specific Feedback• Positive Feedback is 1st (but not only) Choice

Career Stages & Motivation

• What Motivates People Depends on Age & Experience of Salespeople

• 4 General Stages

Exploration Stage

• Do I really want to do this?• High Stress & lots of job changes• Give Realistic Job Descriptions• Provide rapid feedback & short term goals

– 30, 60, 90 days etc….

• Benefits for Reassuring or Releasing

Establishment Stage

• What I want to do (or forced to do)• Focus on Getting Ahead• Likely to Change Jobs if Not Hitting

Expectations• Incentive Pay, Promotions are key

Maintenance Stage

• Midlife Crisis or What I want to Do• Advancement no longer desired (usually)• Backbone of the sales force• New Challenges & Appreciation are Helpful

Disengagement Stage

• Everyone Has This Eventually• Less Pay Motivation Hurts• Be Sure They Hit Quota• DO NOT, DO NOT Punish Prior Success!!!• Noticing Quickly & Asking Why Can Help

Behavioral Self Management

• Optimal – for Some• Clear Rules Needed• Don’t Mess With Success

Incentive Programs

• What Are They?• Goals & Timing• Have to Sell the Program• A Grand Prize is a Mistake• Range of Prizes is Better• Cash has benefits & problems

Incentive Programs

• Themes• Progress Should Be Regularly Reported• Publicize The Winners• Varied Timing is a Must

Recognition Programs

• Regular• Overall Performance• Recognition is Key• Part of Company Culture?

Leader Boards

Cars

• Company Cars?• Motivational Tool!• Competitive Salespeople• Trash Talk Factor• See What You Drive• Not Where You Live

Chevy Spark = Miss Quota

Malibu = Hit Quota

Impala = +25% of Quota

100%+ of Quota!!!! U Da Man!

Don’t Forget Dale!

• Give Regular Praise• Minimize Criticism • Positive Reinforcement• Works on All• What is the Cost Here????