Dealer incentives and bonuses are powerful tools to motivate and reward your sales team, but they can also be challenging to manage effectively. How do you design, communicate, track, and evaluate your incentive programs to maximize their impact and avoid pitfalls? Here are some effective ways to manage dealer incentives and bonuses in the context of automotive sales.
The first step to manage dealer incentives and bonuses is to align them with your strategic goals and performance indicators. You want to incentivize the behaviors and outcomes that support your vision, mission, and values, as well as your market position, customer satisfaction, and profitability. For example, you might offer incentives for selling specific models, upselling accessories or services, generating referrals, or achieving customer loyalty ratings. Make sure your incentives are clear, measurable, and achievable, and that they do not conflict with each other or create unintended consequences.
Los objetivos del equipo comercial deben estar alineados con el plan de remuneración que el fabricante y la financiera tiene con el concesionario, de una manera transparente mostrarle que espera éste de la empresa y hacer un desdoble según el área de responsabilidad de cada vendedor, por ejemplo actualmente los indicadores más comunes son: Incentivos por: - Volumen de unidades matriculadas; - Volumen de unidades BEV matriculadas; - Porcentaje de penetración financiera; - NPS (Indicador de objetivo de calidad); - Renovaciones de productos fidelizantes; - Venta de atípicos y accesorios. La suma de alcanzar los objetivos es la diferencia para conseguir una rentabilidad óptima para la empresa a través del dpto. de ventas.
Sometimes sales targets are not met by external factors, such as drought for agriculture or high interest rates for consumers. In these cases, we can use performance indicators such as continuous process improvement (year over year), hours of training pertinent to the business, recurrence of maintenance problems and preservation of the customer base. The important thing is not to fail to show the dealer that we are recognizing when there is a coordinated effort to achieve the goals set out in the business plan
Muestrame los incentivos y te dire los resultados. En ventas es primordial tener incentivos alineados con los objetivos, incentivos que deben ser graduales a la dificultad de lograr dichos objetivos. Las mediciones no deben entorpecer el como se logra el objetivo, al contrario deben fomentar el logro de los objetivos de forma correcta y ayudar a evitar las desviaciones del objetivo.
The second step to manage dealer incentives and bonuses is to communicate them effectively to your sales team and your customers. You want to create excitement and engagement around your incentive programs, and make sure everyone understands the rules, criteria, and benefits. Use multiple channels and formats to communicate your incentives, such as emails, newsletters, posters, flyers, videos, or webinars. Highlight the success stories and best practices of your top performers, and provide regular feedback and updates on the progress and results of your incentive programs.
Most of the failure of scheme is due to poor communication in terms of benefit ;tenure and value addition. Scheme communication should be transparent ;easy to understand and with high perceived value. Criteria and rules must be simple and a good scheme ensure minimum 70-80% success /strike ratio .Scheme communication must be written and have clarity of begin date ; end date and settlement date with do's and don't .We need to develop a process for regular progress monitoring. One should use all mean of communication to enroll maximum partner under that .
The third step to manage dealer incentives and bonuses is to track them accurately and transparently. You want to have a reliable and consistent system to record, verify, and report your incentive data, and to avoid errors, disputes, or fraud. Use a software or platform that can automate and integrate your incentive tracking with your sales data, inventory, CRM, and accounting systems. Provide your sales team with easy access to their incentive data, and allow them to monitor their performance and earnings. Audit your incentive data regularly, and resolve any issues or discrepancies promptly.
The fourth step to manage dealer incentives and bonuses is to evaluate them periodically and adjust them as needed. You want to measure the effectiveness and efficiency of your incentive programs, and to ensure they are delivering the desired results and return on investment. Use quantitative and qualitative methods to evaluate your incentive programs, such as surveys, interviews, focus groups, or analytics. Compare your incentive data with your sales data, customer feedback, market trends, and competitive analysis. Identify the strengths and weaknesses of your incentive programs, and make changes or improvements based on your findings and feedback.
The fifth step to manage dealer incentives and bonuses is to reward them fairly and timely. You want to recognize and appreciate your sales team for their achievements and contributions, and to foster a culture of trust and loyalty. Pay out your incentives promptly and accurately, and follow the agreed terms and conditions. Celebrate and share the success of your sales team, and provide them with meaningful and personalized rewards. Avoid favoritism or discrimination, and ensure that your incentives are fair and equitable for all your sales team members.
The sixth step to manage dealer incentives and bonuses is to learn from others who have experience and expertise in this area. You want to benchmark and learn from the best practices and innovations of other dealers, manufacturers, or industry associations. Join or create networks and communities of practice where you can exchange ideas, insights, and feedback on your incentive programs. Attend or host events, workshops, or webinars where you can learn from experts, peers, or mentors. Stay updated and informed on the latest trends, research, and regulations on dealer incentives and bonuses.