| It is common knowledge that many sales people can | | | | both motivational strategies are not effective. When |
| calculate how much commission they have earned | | | | they feel burnt out, it's not an issue that can be |
| faster and more accurate than any super computer. | | | | resolved with money (or most incentives). In addition, |
| Indeed, money is a key driving force that motivates | | | | only 15% of top sales people can be competent |
| most, and certainly for the more successful ones. | | | | managers. |
| However, is money then the ONLY motivator, or are | | | | When they feel burnt out, it is usually they found |
| there anything else? | | | | that they are not further developing themselves or |
| If you were to ask anyone why they want to be | | | | learning anything new anymore. Usually, they found |
| one, there will usually be 3 answers: | | | | they have reached some kind of plateau in getting |
| 1. For the money (of course); | | | | better sales results, and the repetition of doing the |
| 2. Being able to directly link their efforts to tangible | | | | same old thing is becoming boring to them as well. |
| results; and | | | | This is also the phase when good people are the |
| 3. Having the (relative) independence and flexibility in | | | | most vulnerable to defecting to your competitors. To |
| their jobs | | | | overcome this, we will have to looking into other |
| As such, while money may be the key driver for | | | | overlooked motivators. |
| most, it certainly is not the only one. They are also | | | | Can I Do It? |
| motivated by a sense of achievement, and the more | | | | As mentioned earlier, the other aspect of motivation |
| successful ones usually have large egos as well. | | | | is whether you feel you are able to do your job well. |
| If we were to look deep into what motivates | | | | In some industries where sales management |
| people, here are 2 factors that we need to consider: | | | | practices tend to be Neanderthal (email me to find |
| 1. Are the rewards attractive (or punishment severe) | | | | out which ones), the attrition of new sales hires are |
| enough? | | | | astonishingly high. These new hires are motivated by |
| 2. Am I able to achieve it? | | | | making more money, just like any successful sales |
| Avoiding Pain vs. Seeking Pleasure | | | | person will be. However, due to the lack of proper |
| While making money is a great pleasure for many | | | | training, coaching and guidance, as much as 90% of |
| people, including sales people, some are first | | | | these new hires leave within 1 month. If they don't |
| motivated by avoiding the punishment of NOT | | | | see brightness of the future, they'll just go. |
| achieving their monthly, quarterly or annual sales | | | | While such companies do provide some level of sales |
| targets. Hence, it's a very common practice for sales | | | | training, as much as 87% of all sales training |
| people to "hide" potential contracts to "save them | | | | evaporates within 1 month of the training. And this |
| for the next financial period", rather than to risk NOT | | | | statistic refer to companies with better sales |
| meeting the sales targets for that period. | | | | management practices in place. For companies with |
| Sales people are indeed masters of work flow | | | | weaker sales management, most of these training |
| optimization in this sense. However, this does not | | | | are outdated and don't really prepare the sales |
| help you in getting results from your sales team, and | | | | person to handle customers in the real world. Without |
| sometimes deals may be lost due to the delays | | | | a post-training supporting environment, the new hires |
| caused when sales people want to "save them for | | | | feel overwhelmed and and helpless, and then they |
| the next quarter". | | | | just leave. |
| When companies use money as the only motivator, it | | | | When sales people find that they are not able to |
| is also a riskier proposition. There's nothing to prevent | | | | achieve better results, or net bigger deals, or |
| competitors to use the same motivator to entice | | | | improve margins, what they need now is support |
| your best people (along with your best customers) | | | | from management on how they can achieve |
| to defect. While there may be some non-competitive | | | | breakthroughs. They know that if they can do |
| clauses in employment contracts, these are seldom | | | | better, the monetary incentives are all there waiting |
| enforceable, especially in Asia. | | | | for them. What they really need is the right guidance |
| As mentioned earlier, successful sales people usually | | | | and support them how they can do so. |
| have large (sometimes over-sized) egos. Nothing | | | | Besides providing the usual training, here are other |
| feeds the ego other than believing (correctly or | | | | ways that managers can get their people proceed to |
| otherwise) that you had singlehandedly contributed | | | | the next level of performance: |
| millions of dollars to your company's sales revenue. | | | | Align sales strategies to market realities. Sometimes, |
| However, massaging the sales person's ego (either | | | | due to rapid market changes, sales strategies |
| by making them superstars when they succeed, or | | | | mapped out 6 months ago may have already be |
| "humiliating" them when they don't deliver the | | | | outdated. A sales strategy re-alignment may help |
| intended results) is a double-edged sword. On one | | | | close more sales; |
| hand, it will drive people to achieve super-human | | | | Provide recognition of improvements in sales process. |
| results. On the other hand, they may be so focused | | | | While people are rewarded (or punished) based on |
| on their self-achievement that they become | | | | results (sales targets), few sales managers actually |
| insensitive to issues such as: | | | | recognize the improvements that sales people made |
| Serving customer needs, | | | | in their sales process. If sales people made sales |
| Maintaining healthy margins, | | | | process improvements, it is very likely that this will |
| Ensuring cross department support andother factors | | | | lead to better results. Such improvements need to be |
| that will impact business results. | | | | recognized, reinforced and made as good examples |
| When the egos become over-sized, some people can | | | | for others to follow. |
| have a false sense of "invincibility". Some live on past | | | | Motivating the Sales Force Without Using Money |
| glories, even when current sales results are not as | | | | In a nutshell, when people join the sales force, they |
| good or outstanding as before. To overcome this, | | | | may do so in the hopes of making more money. |
| Dell Computers have made sure that their egos are in | | | | However, if you want to get them to perform to |
| check by just focusing on the present and future. | | | | the next level of performance, you will need to |
| Past performance mean nothing to Dell's sales | | | | improve their skills and abilities to achieve better |
| managers, and a top performer is only as good as | | | | results. In fact, management guru Ram Charan |
| the next sale. They are as such motivated to | | | | mentioned that if using incentives as the main means |
| maintain their "successful" status every single day. | | | | to get better performance from the sales team is an |
| Eventually, sales people get burnt out. Depending on | | | | outdated approach |
| the industry, they usually achieve their peak about 1 | | | | If you find isolated cases of poor performance from |
| to 1.5 years after joining a company. How they | | | | your team, then perhaps these few bad hats are |
| perform beyond the peak period is a matter of how | | | | just making excuses not to work hard. However, if |
| you motivate and nurture them. | | | | you find that poor performance is widespread and |
| Besides dishing out ever better incentives (usually | | | | pervasive in your sales force, then you, as manager, |
| money-related), many companies chose to promote | | | | are making THE excuse for not providing the |
| their top sales to be sales managers. Unfortunately, | | | | necessary support and guidance for your people. |