Everyone who’s worked in showroom sales will probably tell you a similar story: there are brief periods of success, followed by longer stretches where purchases slow to a lull. When conversions drag despite everyone’s best efforts, staying motivated and optimistic becomes harder. The sales team is unhappy, marketing executives are unhappy, and everyone just wants to recapture the winning formula they had before.
Sometimes, the answer involves looking at branding, product offerings, or marketing strategy. But often, success can be recaptured by changing your sales incentive structure. That’s where SPIFF programs come in!
The acronym “SPIFF” might not sound like anything you normally encounter in typical sales lingo, but its meaning is clear – “Sales Performance Incentive Fund.” Simply put, SPIFFs provide sales teams with short-term, direct rewards and incentives like cash, cards, points, or merchandise for meeting targets and achieving goals. Sometimes, the acronym “SPIV” is used to describe programs that operate in a similar way to SPIFFs, but with a longer-term focus.
SPIFFs have been utilized by major companies for decades and have a long history of success. They’re especially helpful when there’s merchandise to be moved, such as electronics, appliances, and other products that consumers seek out in showrooms and physical stores.
The budget, type of reward, reward amount, and program structure is determined by the company selling its merchandise.
No two SPIFF programs are the same, since different industries and manufacturers have their own needs and requirements. But typically, one can expect to see the following features in an effective SPIFF program:
Few things are more gratifying than receiving a cash reward or bonus for a job well done! When salespeople move a certain product or hit a goal, they can be rewarded in cash for the sales they make. Some great non-cash rewards might include gift cards, vacations, or merchandise.
Many companies have sales goals that they need to meet on a quarterly basis. A SPIFF program can be set up to incentivize sales within specific time frames, giving reps the urgency and motivation to meet their targets.
SPIFF programs rely on hard work from sales teams, but they’re also supposed to be fun! Getting rewarded quickly not only increases engagement, but can help drive creativity, teamwork, and competition. They’re ideal for pushing through slower days!
If you’re interested in exploring whether SPIFFs can help you reach your sales goals, there are a few things to consider.
You want your investment to be successful, so it’s important to plan wisely and choose a great administration partner! Since 2001, MarketNet Associates has provided major industry players with their expertise in the administration and management of SPIFF programs. MarketNet’s 99.8% satisfaction rate speaks to the value provided to long-time clients. Learn more about SPIFFs and how your business can benefit by giving MarketNet a call today at 847-358-6884!