The Behavioral Economics of Setting Sales Goals
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Transcript of The Behavioral Economics of Setting Sales Goals
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Behavioral economicssuccessful goal setting
and
Behavioral economicssuccessful goal setting
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©BI WorldWIde™ 2014 | Proprietary & Confidential
Successful goal setters are different from the rest – they achieve more than those
who don’t set goals properly.
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©BI WorldWIde™ 2014 | Proprietary & Confidential
Designing incentive programs and setting goals using the principles of behavioral economics
will increase the rate of achievement and improve overall performance.
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©BI WorldWIde™ 2014 | Proprietary & Confidential
Encourage your sales force to follow these seven goal-setting best practices
to boost achievement rates.
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©BI WorldWIde™ 2014 | Proprietary & Confidential
{idiosyncraticfIto
ne
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By personalizing your goal, a higher value is put on it and you’re more likely to achieve it. goalmake it
yourown
{idiosyncraticfIto
ne
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{relevancyofgoAL
two
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Stretch goals challenge people to go beyond their comfort zone and accomplish something they weren’t certain they could do.
{relevancyofgoAL
two
goalstretchyourself with anachievable
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{goals loom largerEffECtth
ree
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A deadline will help prioritize goals that are set. It’s okay to be on track but not achieve your goal in the time that you budgeted as long as you don’t give up on the goal altogether.
deadlinegiveyourself a
{goals loom largerEffECtth
ree
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{memoryBIAS
fou
r
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Since your brain forgets 70% of what happened yesterday, reminders are important! Your brain will engage functions that help you plan when you sit down and begin writing your goals.
goalwrite downyourBigor
small,
{memoryBIAS
fou
r
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{Hedonictreadmill
five
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Create specific milestones to monitor proximity to your goal. Your brain will do this automatically if you just give it a chance.
make
a
Plan on how toachieve it
{Hedonictreadmill
five
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goal gradienttHEorY {s
ix
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A fast start leads to greater success and knowing your status along the way generates higher achievement.
goal gradienttHEorY {s
ix
track YoUrprogress
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{Extrinsicmotivations
eve
n
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Determine a reward early so you can focus on it as you approach the goal. the reward will act as a sweetener to your victory and a deterrent to giving up.
{Extrinsicmotivations
eve
n
onCEachieved reWard
yourself
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©BI WorldWIde™ 2014 | Proprietary & Confidential
Australia | Canada | China | India | Latin America | United Kingdom | United States©BI WORLDWIDE™ 2014 | Proprietary & Confidential
Successful goal setters are different from the rest – they achieve more than those who
don’t set goals properly. In our experience, designing incentive programs and setting
goals using the principles of behavioral economics will increase the rate of achievement
and improve overall performance.
To learn more about BI WORLDWIDE, visit: BI WORLDWIDE.com or email info@BI WORLDWIDE.com.
Encourage your sales force to follow these seven goal-setting best practices to boost their achievement rates.
{
two
Without committing to a deadline, there is no sense of urgency and no measure of how to budget our time.
A deadline will help you prioritize and without them, goals you set are
useless. Also, it’s okay to be on track but not achieve your goal in the time
you budgeted as long as you don’t give up on the goal altogether.
{DEADLINEgiveyourself ath
ree
make
a
PLAN ON HOW TOachieve itCreate specific milestones to monitor proximity to your goal. No one runs a marathon without
first setting milestones for training, 5K’s and half marathons. Your brain
will do this automatically if you just give it a chance.
{
five
TRACK YOURprogressResearchers tell us that a fast start leads to greater success and that
knowing how well you’re doing along the way generates higher achievement,
too. Tracking should be relevant to the size and scope of your goal. Those who get off to a fast start in
an incentive program typically finish 57% higher than those who don’t.
{
six
ONCEachieved REWARDyourselfDetermine your reward early on so
you can focus on it as you approach your goal. The reward (an integral
part of your goal) will also act as a sweetener to your victory and an added deterrent to giving up – nobody likes to lose.
{seve
n
Writing down your goal helps you reaffirm and remember the goal. Since your brain forgets 70% of
what happened yesterday, reminders are important! Also, your brain will
engage functions that help you plan when you sit down and begin writing.
{
fou
r
By personalizing your goal, you put a higher value on it and are more likely to achieve it. In behavioral
economics, the IKEA effect sums it up: what you create, you love. Make sure that your goal is truly yours.
GOALmake it yourown
on
e
BEHAVIORAL ECONOMICS
SUCCESSFUL GOAL SETTING
beh
ind
itand the
{
{
A deadline gives us an “end in sight” and our motivation will increase the closer we get to it.
Goals loom largerEFFECT{
We always want to move on to the next level.
HedonicTREADMILL{
We work harder the closer we get to achieving a goal.
Goal GradientTHEORY{
We do something because we know we’ll be rewarded for it.
ExtrinsicMOTIVATION{
We favor things that we remember.
MEMORYBIAS
{
We will work harder to achieve a goal if we perceive we have an advantage at achieving it.
IDIOSYNCRATICFIT{
In order to buy into a goal and put effort toward achieving it, we must perceive it as being relevant to us.
RELEVANCYofGOALStretch goals challenge you to go beyond your comfort zone and you will find it to be especially rewarding when you accomplish something you weren’t certain you could originally do. It’s easier than you
think – over half of our GoalQuest® incentive program participants exceed their baseline performance by achieving a stretch goal.
GOALstretchyourself with anachievable
GOALwrite downyourBIG or
SMALL,
Australia | Canada | China | India | Latin America | United Kingdom | United States©BI WORLDWIDE™ 2014 | Proprietary & Confidential
Successful goal setters are different from the rest – they achieve more than those who
don’t set goals properly. In our experience, designing incentive programs and setting
goals using the principles of behavioral economics will increase the rate of achievement
and improve overall performance.
To learn more about BI WORLDWIDE, visit: BI WORLDWIDE.com or email info@BI WORLDWIDE.com.
Encourage your sales force to follow these seven goal-setting best practices to boost their achievement rates.
{
two
Without committing to a deadline, there is no sense of urgency and no measure of how to budget our time.
A deadline will help you prioritize and without them, goals you set are
useless. Also, it’s okay to be on track but not achieve your goal in the time
you budgeted as long as you don’t give up on the goal altogether.
{DEADLINEgiveyourself ath
ree
make
a PLAN ON HOW TOachieve it
Create specific milestones to monitor proximity to your goal. No one runs a marathon without first setting milestones for training,
5K’s and half marathons. Your brain will do this automatically if you just give it a chance.
{fiv
e
TRACK YOURprogressResearchers tell us that a fast start leads to greater success and that
knowing how well you’re doing along the way generates higher achievement,
too. Tracking should be relevant to the size and scope of your goal. Those who get off to a fast start in
an incentive program typically finish 57% higher than those who don’t.
{
six
ONCEachieved REWARDyourselfDetermine your reward early on so
you can focus on it as you approach your goal. The reward (an integral
part of your goal) will also act as a sweetener to your victory and an added deterrent to giving up – nobody likes to lose.
{seve
n
Writing down your goal helps you reaffirm and remember the goal. Since your brain forgets 70% of
what happened yesterday, reminders are important! Also, your brain will
engage functions that help you plan when you sit down and begin writing.
{
fou
r
By personalizing your goal, you put a higher value on it and are more likely to achieve it. In behavioral
economics, the IKEA effect sums it up: what you create, you love. Make sure that your goal is truly yours.
GOALmake it yourown
on
e
BEHAVIORAL ECONOMICS
SUCCESSFUL GOAL SETTING
beh
ind
itand the
{
{
A deadline gives us an “end in sight” and our motivation will increase the closer we get to it.
Goals loom largerEFFECT{
We always want to move on to the next level.
HedonicTREADMILL{
We work harder the closer we get to achieving a goal.
Goal GradientTHEORY{
We do something because we know we’ll be rewarded for it.
ExtrinsicMOTIVATION{
We favor things that we remember.
MEMORYBIAS
{
We will work harder to achieve a goal if we perceive we have an advantage at achieving it.
IDIOSYNCRATICFIT{
In order to buy into a goal and put effort toward achieving it, we must perceive it as being relevant to us.
RELEVANCYofGOALStretch goals challenge you to go beyond your comfort zone and you will find it to be especially rewarding when you accomplish something you weren’t certain you could originally do. It’s easier than you
think – over half of our GoalQuest® incentive program participants exceed their baseline performance by achieving a stretch goal.
GOALstretchyourself with anachievable
GOALwrite downyourBIG or
SMALL,
about how
behavioral economics
can help drive goals
by downloading
our tip sheet now.
learn more...
Australia | Canada | China | India | Latin America | United Kingdom | United States
©BI WorldWIde™ 2014 | Proprietary & Confidential
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