What really motivates today’s sales force: is it money?
Steph, our sales manager in a financial institution, was very happy with her sales force development programme because it captured leading-edge global perspectives and customised them for her specific context. Almost immediately she was seeing some ROI, but she knew that she had to address the matter of salesforce motivation very quickly.
Not sure of exactly how to proceed she raised the subject at her next meeting with her weekly coffee partner.
It’s expensive to keep a sales force!
If we take the view that personal selling is an element of the integrated marketing communications mix, then firms must give special attention to their sales force and the value that they really create.
Are they worth more to the company than a pull marketing strategy that will bring a robust stream of customers through the door? Are they motivated and creating real value on their own account by the way that they sell? Or are they merely drawing from the equity that already resides in their brands? Even more questions raced through Steph’s mind.
Are salespeople really a special breed? Did experienced sales managers find that the differences among salespeople were greater than their similarities? Is it really an undeniable fact that at the heart of a successful sales team is motivation? And if so what really works when it comes to motivating salespeople? Isn’t it money that they all work for? Not quite so, but how simple that would be!
GUIDELINES FOR MOTIVATING AND REWARDING SALESPEOPLE
There are several theories of motivation, but for simplicity we will refer to Tom Ingram and Buddy LaForge, (2014) noted marketers and sales management researchers who, accepting that income must be commensurate with effort and output, speak of six guidelines for motivating and rewarding salespeople as follows:
1. Recruit and select salespeople whose personal motives match the requirements and rewards of the job.
The importance of matching the abilities and needs of sales recruits to the requirements and rewards of the job cannot be overstated. This is especially critical for sales managers who have little opportunity to change job dimensions and reward structures. Investing more time in recruitment and selection to ensure a good match is likely to pay off later in terms of lower turnover, as well as fewer motivational and other managerial problems.
2. Attempt to incorporate the individual needs of salespeople into motivational programmes.
At the heart of the complexity of motivation is the concept of individual needs. The demographics of the workforce can be diverse, with individuals at different stages in their personal and work lives, each with varying interests and influences. Because one size fits one, where possible, individual consideration should be taken into account when motivating and rewarding salespeople.
3. Provide adequate job information and ensure proper skill development for the salesforce.
Today’s salespeople must have high skill levels and be well equipped with the right information to do their jobs well. If sales managers train their people properly and give them the right information, salespeople can see how their efforts lead to the desired results. If salespeople’s understanding of how their efforts produce results is consistent with that of the sales manager, reasonable goals can be set that allow performance worthy of rewards.
4. Use job design and redesign as motivational tools.
Most sales jobs allow the use of a wide range of skills and abilities; boredom is thus not a typical problem. And given the unique contributions of personal selling to the organisation, salespeople can readily see that their jobs are critical to the organisation’s success. Most salespeople have considerable latitude in determining work priorities and thus experience more freedom on the job than do many other employees. Finally, feedback from sales managers or through self-monitoring is readily available. In many ways, the motivational task is easier for sales managers than for other managers. The sales job itself can be a powerful motivator
5. Concentrate on building the self-esteem of salespeople.
Sales managers increase sales force motivation by building salespeople’s self-esteem; not tearing them down. Positive reinforcement for good performance should be standard procedure. (We all do it with our kids and our pets!) This may be done with formal or informal communications or recognition programmes designed to spotlight good performance. When performance is less than satisfactory, it should not be overlooked, but addressed in a constructive manner.
6. Take a proactive approach to seeking out motivational problems and sources of frustration in the salesforce.
Sales managers should be committed to uncovering potential problems in motivation and eliminating them before they develop.
Steph realised from the above that as the sales manager, she would be at the centre of sales force motivation. That’s the peculiarity of her job, for unlike some other managers, she’s got nowhere to hide. She either made their numbers or she did not. And she can’t make aggressive numbers unless her team is motivated.
So that was Tom Ingram and Buddy LaForge, but here in Jamaica we know that most salespeople get the respect that they have earned over time. And some customers can be really hard on them. Which is why some sales reps know that living well is their revenge, and they work their hearts out, make good money, and some even flaunt it.
But when all is said and done, is it really the money that motivates the best salespeople? Or is it really true that we are like dedicated gamblers — in it for the thrill?
Herman D Alvaranga is president of the Caribbean School of Sales Management (CSSM) the region’s first specialist sales, marketing and brand management college. E-mail hdalvaranga@cssm.edu.jm