By Martha Borja, General Manager, Wirecard Philippines
The development and implementation of a sales incentive program can determine the success of a company. If utilized well, incentives and rewards can be a powerful force in motivating sales representatives, and in turn, drive higher sales performance.
However, sales incentives and rewards are more than the compensation that sales representatives take home at the end of the day. Companies need to give the right kind of motivation that sales teams need to align themselves with the company goals and sell successfully.
With 8.8% of Filipino workers leaving their employment in the second quarter of 2019 to look for higher salaries and better career growth prospects, how can managers optimize their sales incentive programs to retain their best salespeople? Having integrated digital strategies in place is a crucial step to success.
The Truth Behind Incentives
According to the 2020 Robert Walters Salary Survey, about a third of Filipinos who work in sales and marketing listed better compensation and benefits as the top motivational factors when they consider switching jobs. However, focusing solely on providing generous incentives does not necessarily help to win over the loyalty of their employees. Employees are also concerned about when and how they get their rewards. Therefore, it is important for companies to design custom-tailored incentives and commission program that not only matches their employee’s needs and preferences but at the same time keeps them excited and engaged at work.
A 2019 Wirecard Consumer Incentives survey also revealed that consumers prefer digital experiences and have high expectations for getting their payouts quickly and efficiently. Surprisingly, 39% of respondents said one day or less is the maximum amount of time it should take to receive a reward after applying to receive it. In today’s digital age where customers expect instant gratification and want to manage their incentives digitally, it is clear that smarter digital tools are essential to contribute to a seamless incentive experience that can help to motivate and retain talent.
Enhancing the Process with Digital Tools
Switching to digital incentives offers a range of value-added options for both employers and sales representatives. With 85% of workers saying that they will work harder if they are paid faster for their efforts, sales teams would be more motivated when incentivized quicker. Organizations can issue digital incentives in the form of physical or virtual prepaid cards, which allows sales representatives to add to their mobile wallets and spend almost anywhere. Not only do sales representatives benefit from a shorter wait time to receive their rewards, but they also enjoy the flexibility to spend it as they see fit.
Physical or virtual cards, which can be used to issue rewards and rebates, are also a cost-effective solution for companies. As employees earn and spend their rewards, companies will be able to gather valuable data on where and what their sales representatives are spending their incentives on, and apply these insights into their compensation programs.
In addition, companies can apply gamification to their sales incentive programs, adding an element of fun to boost engagement and build loyalty. From quizzes to surveys and sweepstakes, these games will also help managers to track their sales representatives’ progress and rewards, allowing them to recognize success in a more creative way.
Digital payments through innovations like Wirecard’s sales incentive card brings about benefits such as speed and convenience, outperforming traditional payment methods such as bank transfers. Sales incentive programs can motivate the sales force by giving the appreciation they deserve and help retain talented employees. As the workforce becomes more competitive in the Philippines, companies need to ensure that they optimize their sales incentive programs, adapting to business changes and taking advantage of digitalization to boost employee morale and sales performance.