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Can you connect carrots and quotas with the right sales behaviours?

Posted by James Pember on 3/14/14 2:12 PM

As a manager, one of the most important things that you do is set quotas and targets for your reps. This simple act helps drive motivation and energy on the sales floor becuse the best reps are naturally competitive and love smashing targets and reaching personal bests. 

However, there is a problem with this method of sales motivation

Carrots and quotas do increase rep motivation - however it can often lead to reps performing undesirable behaviors, simply in order to increase their chances of hitting quota.

Now, for some companies, this isn't a big issue - but for many companies, "bad deals" can be a business killer - and whilst the reps benefit from a short term victory, the company loses on a burnt customer. 

So, how do you make sure your "carrots" lead to desirable rep behavior?

The answer: by switching the carrots from "cash" to "desired activities". Instead of rewarding the rep with the highest order value - try rewarding the reps for "most meetings attended" or "most proposals sent". In order to get the maximum effect, try using sales competitions to make sure the reps are excited to perform the right behaviors.

PS. If you want to run online sales competitions - definitely give SpartaSales a go! 

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Topics: sales productivity, sales, tips for sales managers, sales management, sales competitions, motivating sales people

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