When you manage a team of sales reps, your compensation structure is responsible for the success rate of your team. But sales targets aren’t everything and the relationship that your agents are able to nurture with clients is just as important for your brand.
The answer is not always simple – should you offer bonuses or commission for high customer retention rates? Does a fixed salary or variable compensation make the most sense for your team?
How to set incentives based on relations?
The go-to answer for most companies is setting up a sales bonus. A sales bonus is a monetary incentive received when a salesperson meets or exceeds a pre-defined goal.
Sales bonuses might be expressed as a percentage of a cumulative revenue milestone – that is, a dollar amount awarded once a sales rep brings in a certain amount of revenue for a particular period. For instance, an individual rep might receive a $1000 sales bonus when they hit $10,000 in revenue for the quarter.
Bonuses can also be structured around achievements not directly linked to revenue. For example, bonuses may be awarded based on how many units are sold, the number of new contracts signed, or how quickly new customers are moved through the sales cycle.
Adopting a different approach
When you keep an eye on the big picture you can step back and examine the core of the relationship between your sales reps and your customers. When creating a sales compensation structure or deciding how to award bonuses, play around with different combinations of salary, bonuses, and commission to see what motivates your reps. The whole point of offering sales bonuses or commissions is to incentivize your team to work towards the goals that matter most. Develop your sales bonus structure around specific objectives – whether that’s increasing cash flow, scheduling a certain number of meetings, or keeping existing customers happy.
One of the best ways to ensure sales success is to make the most of your tools.
Smart contract-based solutions help you use all of your data to fuel documents and drive business workflows. With customizable solutions, it’s easy to capture data within forms or data feeds from any service, any location on any device. The data will be updated not only in your Trakti records or in the blockchain, if needed, but also in your ERP or CRM since with Trakti we can launch a workflow or trigger the creation of a new record or event on a third party service.
Smart contracts give you the ability to create transparency. You can use this to your advantage to gain and maintain the trust of customers. When a client purchases something or signs an agreement, the smart contract register the associated transaction details, which can then be used as triggers for the legal agreement and for the associated benefits you want to give to your sales team.
This also works for customer loyalty! Click here to discover how.
One way you can use smart contracts to incentivize relations between your sales rep and customers is via loyalty programs. Using the inherent qualities of blockchain, you can run better loyalty programs. This means simplifying and automating earning, redeeming, and reconciling reward points.
It should come as no surprise that people want to earn rewards regardless of the channel they’re using. Using smart contracts to create a multi-channel network can enhance customer relations by making it easier to redeem rewards.
Adopting smart contracts can introduce a different approach to loyalty programs. The model of token compensation can be achieved when certain objective goals are reached. The smart contracts then execute them automatically.
Smart contracts allow autonomous rewards to be issued when the employee makes use of Trakti’s smart legal contract functionality to make it fully compliant with the law. Smart contract-based rewards schemes can replace traditional rewards programs such as less frequent incentives, bonuses and raises, with a scheme that rewards employees immediately for the contribution made to the overall business.
The path to sales success is paved with incentification mechanism. With the right tools, you can invest in your sales reps and give them the opportunity to do what they do best: close deals!
Have a look at Trakti and our features page to explore how we can help your company become even more successful.
