SPIFFS FOR SALES

What is a SPIFF?

A SPIFF simple put is a Sales Program Incentive Fund. What this means is that it is an incentive program set up by a company to motivate their sales force to sell more product. The Salesperson is rewarded with a bonus for selling a certain amount of product.

A SPIFF, or?"Special Pay Incentives For Fast Sales", is a financial incentive offered to sales staff as an encouragement to meet or exceed sales targets.

A well designed SPIFF can be a great motivator for Salespeople. It can help to increase sales and encourage competition among Salespeople to sell more product.

The difference between a SPIFF and commission is that a SPIFF is usually a one-time bonus, while commission is paid out on a regular basis.

Why Use a SPIFF?

There are many reasons why a company might choose to use a SPIFF. Some of the reasons include:

- To increase sales volume

- To increase market share

- To reward sales staff for their efforts?

- To motivate new and current sales staff?

Whatever your reasons for using a SPIFF, make sure you design it in a way that will achieve your desired results.

When designing a SPIFF program, there are a few things to keep in mind. The most important thing is:?

·??????Make sure the bonus is significant enough to be motivating

·??????Make sure the bonus is paid quickly, so Salespeople see the immediate benefit

There are many different types of SPIFFs, but the most common one is a commission based SPIFF that is put in place for a specific period of time.?

How do you set up a SPIFF program?

The following nine steps will help you set up a successful SPIFF program:

1. Define the goals of the SPIFF program and what you hope to achieve.?

2. Determine who will be eligible for the SPIFF.?

3. Decide on the length of the program and when it will start and end.?

4. Set the criteria / benchmark that sales staff must meet in order to qualify for the SPIFF.?

5. Determine the value of the SPIFF.?

6. Choose the products or services that will be included in the SPIFF program.?

7. Select a rewards provider and determine how the rewards will be delivered (e.g., gift cards, cash, trips away from the office, vacation breaks and so on).

8. Promote the SPIFF program to your sales staff and make sure they understand the rules and how to qualify for the rewards.

9. Monitor the progress of the SPIFF program and make changes as needed.

10. Thank participants for their efforts when the SPIFF program concludes.

Personalised SPIFFS are also great when the SDR has something personal on the line.?

For example if the SDR wants to go on a trip, the company could agree to contribute an additional amount of money for each new customer that the SDR brings in, in a certain timeframe.

This gives the SDR an extra incentive to work hard and bring in new business. Plus, it’s a great way to show your appreciation for their efforts.

This type of SPIFF is more personalised and can be tailored to the individual salesperson's needs.

It also creates a sense of competition and encourages staffers to go above and beyond in order to earn.

The benefits of running a SPIFF for your team:

There are many benefits of running a SPIFF for your sales team. Some of these benefits include increased market share and sales, as well as:

1.?Increased productivity?– Sales staff who qualify for rewards are likely to work harder to achieve their goals, resulting in increased sales.

2.?Improved customer service?– Sales staff who are rewarded for meeting or exceeding sales targets are more likely to provide better customer service.?

3.?Greater focus on market share and goals?– Sales staff who are rewarded for reaching specific sales goals are more likely to focus on market share and achieving their targets.

4.?Increased team spirit and collaboration?– When sales staff work together to achieve a common goal, they can develop a strong team spirit.?

5.?Better communication?– Sales staff who are working towards a common goal are more likely to communicate better with each other.

6.?Increased motivation?– Sales staff who are rewarded for meeting or exceeding sales targets are more likely to be motivated to sell more products or services.

7.?Greater Efficiency?– Sales staff who are more motivated and have a better team spirit are likely to be more productive.

8.?Increased sales?– Ultimately, the aim of a SPIFF is to increase sales.

Are SPIFFS The Right Sales Tool For your Business?

Sales are important, but are you prepared to properly set up and handle a?SPIFF?

Sales staff are a valuable asset to any business, and it’s important to recognise their hard work with appropriate rewards. Sales Performance Incentive Funds (SPIFFS) are one way of doing this, but they’re not right for every business. Here are some things to consider before setting up SPIFF for your team:

• Recognition is an unexpected result of high performance, not an entitlement.
• Create an environment where people are driven to achieve their goals, not simply rewarded for meeting them. Sales staff should feel like they’re working towards a common goal, and that their contribution is important.
• Be prepared to invest time and effort into setting up SPIFF correctly. The system won’t work if it’s not tailored to your business
• Set a timeline for the program and make sure everyone knows what the expectations are.
• Decide if you want to use a points-based system or a dollar-amount system.
• Points-based systems are generally more motivating, as staff can see their progress towards rewards. Dollar-amount systems can be harder to manage, but may be more equitable.
• Choose your rewards
• Ensure a deep understanding of the impact that specific work would have on the organisation.
• Give them the autonomy to own the outcome and measure the impact
• Make sure your staff know about the rewards, and how to redeem them.
• Be prepared for a surge in sales!