PART 3 — 12 Proven Strategies On How To Motivate Your Sales Team And Boost Performance
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Proven strategies to motivate sales teams with an individual structure
An individual sales team structure refers to the organizational framework that’s set up to support sales efforts, tailored to specific needs and goals of the business.
This can vary depending on the company size, industry, and sales strategy.
So, that said, here are some common strategies you can use to motivate your sales team with this structure.
- Overachievement bonuses and SPIFFs (sales performance incentive fund formula)
Overachievement bonuses and Sales Performance Incentive Funds (SPIFFs) are some of the most common motivators in sales.
This rewards salespeople for exceeding their targets, encouraging them to push beyond the minimum required. This can be particularly effective in an individual structure where personal achievement directly correlates to financial rewards.
For example, let’s say a sales representative has a quarterly sales target of $100,000. If the SDR exceeds this target by up to 120%, they earn a bonus 5%-20% on the excess.
Additionally, you can introduce a SPIFF in place, offering $500 for every new enterprise client the SDR secures, further incentivizing their efforts.
2. Quarterly and monthly leaders’ bonuses
Setting up a system where the top performers in terms of revenue or new customer acquisition receive a quarterly or monthly bonus can create a healthy competitive environment.
These bonuses not only recognize high performers, but also motivate others to strive for the top spot.
With this system in place, the top three salespeople who generated the highest revenue would receive a monthly bonus. For example, $1,000 for the highest earner, $750 for the second place, and $500 for the third.
This system not only rewards their achievements but also spurs healthy competition among the team.
3. Top win rates bonus
It’s important to recognize top earners in your company and make sure they feel seen.
Recognizing salespeople who have the highest win rates (i.e., the ratio of deals won to deals pitched) encourages efficiency and effectiveness in sales pitches.
This focuses on quality over quantity, promoting a deeper understanding of customer needs and tailored solutions.
4. Largest deal bonus
Offering a bonus for closing the largest deal in a given period can drive salespeople to increase their volume of sales and also seek out bigger opportunities with higher returns.
This can be especially ideal in industries where deals vary significantly in size.
This framework simply rewards the salesperson who closes the largest deal within the team.
5. Stocks and shares
Providing options for stocks or shares in the company can be a powerful long-term motivator to retain your top salespeople.
This strategy aligns the salesperson’s interests with the company’s success and can be particularly appealing as part of a comprehensive compensation package.
There are many different ways you can structure this.
As a hypothetical, you can make it so that if a team member exceeds their yearly revenue target by 20%, they’re awarded stock options equivalent to 1% of their total sales for the year.
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Proven strategies to motivate sales teams with a team-based structure
By employing these strategies within a team-based sales structure, companies can foster a more collaborative, motivated, and productive sales environment.
These initiatives help to ensure that teams meet their sales targets AND feel invested in the broader goals of the organization.
- Inter-team competitions
Creating friendly competitions between sales teams can be a powerful motivator.
For example, the team that achieves the highest percentage over their collective sales target for the quarter might win significant group rewards. Such as a team retreat or the latest tech gadget for each team member.
This encourages teamwork and a shared goal for the sales team.
2. Non-monetary quarterly recognition for the team and manager
With this strategy, you implement a recognition program that highlights the best-performing team each quarter.
This could be non-monetary recognition such as a trophy in the office, a feature in the company newsletter, or a special dinner with the company’s executives.
Such recognition boosts morale and also emphasizes the company’s appreciation of their collective effort.
3. Team building activities
According to a World Economic Forum’s 2023 report, the more benefits an employer describes, the higher the application rates.
Additionally, candidates said that the “softer” rewards described in the job ads gave them the impression that the company cared about its employees and was more considerate with helping workers.
Engaging team activities, for example, are not just fun — they also promote skills useful in the workplace.
Activities could include problem-solving quests, strategy games, or professional development workshops.
This helps strengthen relationships among team members and improves their ability to work together effectively.
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