How well-motivated is your B2B company's sales team? Lack of motivation doesn't just foster a negative company culture; it harms sales. If a sales rep isn't motivated, he or she probably won't close many sales. You can motivate sales reps, however, through the use of a Sales Performance Incentive Fund (SPIF). What is a SPIF exactly, and how do you use it?
What Is a SPIF?
A SPIF is an incentive program that's designed to motivate sales reps by providing them with a monetary bonus. B2B companies distribute the bonuses to high-performing sales reps as a form of motivation. If a sales rep reaches a particular goal, he or she may be awarded with a monetary bonus.
When sales reps are rewarded with a monetary bonus, they'll naturally be motivated to succeed. Sales reps will contact more leads and use a more-refined sales approach to ensure that they meet the goal set by the SPIF. As a result, they'll close more sales while pushing your B2B company along the path to success.
How to Use a SPIF to Motivate Sales Reps
To get started with a SPIF, you must set clear goals for your B2B company's sales reps. Although there are other ways to structure a SPIF, it's typically best to use goals. With goals, sales reps will know exactly what's required to obtain the monetary bonus.
For example, you can set sales goals for specific periods that sales reps must meet. If sales reps generate X number of sales within a specific period, you can give them a bonus. Of course, you can also set multiple levels of goals with varying bonuses. Some B2B companies used a tiered SPIF system where sales reps are rewarded a higher bonus for closing more sales.
Regarding SPIFs, simpler is better than complex. If your B2B company's SPIF is too complex, it won't resonate with sales reps. Sales reps must understand the SPIF in order for them to appreciate it. Therefore, you should create a simple SPIF that uses clear goals to motivate your B2B company's sales reps.
While there are other ways to motivate sales reps, few are as effective as SPIF. It uses a monetary bonus to reward -- and therefore motivate -- sales reps. When sales reps reach a goal, they'll receive a bonus. As a result, sales reps will have a stronger drive and determination to close more sales.