SPIFFs are short-term incentives targeted at individual sales reps to accelerate sales of a particular set of products within a specific span of time. Also known as channel incentive programs and sales incentive programs, SPIFFS produce performance improvement, measurable results, and engaged participants.
SPIFFs are short-term incentives targeted at individual sales reps to accelerate sales of a particular set of products within a specific span of time. Also known as channel incentive programs and sales incentive programs, spiffs produce performance improvement, measurable results, and engaged participants.
These days, SPIFF programs are a fundamental element of sales management and can serve many useful purposes. Incentive programs can provide general motivation of the sales force, or they can improve performance in targeted areas.
If selected, implemented and monitored correctly, incentive programs increase performance by an average of 22 percent.
When asked to persist toward a goal, people increase their performance by 27 percent when motivated by incentive programs.
A program’s success and return on investment depend on how well it’s implemented. We’ve got the roadmap to get you started.
The first step, the most important step, is defining your goals. The #1 mistake made by frantic companies is racing to implementation without clear, concise, written goals. A good rule is that 3 goals or less is best for focus. Ask yourself what factors are critical to the success of your business? A few things to consider:
The two most important perspectives to keep in mind as you develop and evaluate any SPIFF program are sponsors and participants.
Will the executive sponsor of the incentive feel the program’s investment generated a satisfactory return?
If you were a participant in the program, would you put forth the extra effort required to take advantage of the earning opportunity?
Now, determine who can impact your goals and how. Start by making a list of who is in your target audience.
70% of American workers are “not engaged” or “actively disengaged."
This advice is counterintuitive — motivating middle performers fuels more sales growth than focusing on top performers. In the 20-60-20 breakdown, top performers are fewer in number. So, the company’s average performing sales reps, the “middle performers,” are actually your greatest opportunity.
An effective program structure, or incentive contest rules, must be designed to achieve your objectives and budget parameters. Tell the participants what you want them to do and what they will earn for doing it.
Research consistently suggests that SPIFF programs that are too short in duration often fail to achieve buy-in because it takes people too long to learn about them before they’re expected to act. Alternatively, longer-term programs can suffer from “program burnout” because employees simply lose interest. It usually makes sense to align the program with a buying cycle or the business’s financial reporting period.
A common trap is for the award provider to select awards they prefer rather than awards the recipient would like.
Participants can select their award of choice for lasting trophy value
Best for short-term SPIFFS and employee reward programs
Branding offers personalization; great for channel SPIFFS
Sharable rewards create memorable experiences
• What will catch their eye?
• What have they done or earned before?
• What is the hot destination or cool gadget?
• Do they have children?
• Are they sports enthusiasts?
Everyone asks: “What is better: cash or non-cash awards?” The mob of sales reps clamor, “Give me cash, not prizes.” Before launching a spiff program, Human Resources wisdom advises that basic, monetary needs must be met first by existing compensation structures. Conclusion: Cash is king for base compensation and non-cash SPIFFs add extra motivation.
Behind the scenes of your spiff program lies the backbone of its long-term success. More than just a pretty web design, the technology infrastructure and databases supporting your spiff are vitally important to its smooth performance, engaging UX (user experience) and ease of maintenance. Good SPIFF software will include:
Key Webpages:
Website deliverables:
There's several factors to consider when choosing what software is best for tracking your SPIFF Program.
Participants: <50
Total Rewards: <$25,000
Participants: >100
Total Rewards: >$25,000
Ignite is Brightspot’s flexible SaaS platform that enables quick launch and provides robust technical options for your online incentive program website.
Flexible modules accelerate launch – and new sales.
Out-of-the-box templates keep costs low.
In-house developers give you a roadmap for future growth.
Far too often, the incentive promotion strategy is an afterthought late in the SPIFF launch. Like any successful marketing effort, an effective spiff program needs a comprehensive campaign strategy. The #1 mistake is tiny communication or promotional budgets. The incentive becomes the best-kept secret.
Hints at events to come and piques interest
Delivers exciting announcement right to participant’s inbox
Don’t rely solely on email
In-person demonstrates a commitment to the spiff’s success
Catch attention with a well-designed mailer
Themed super billboards embellish large spaces
Frequent communication keeps program top-of-mind
Tangibles generate excitement – consider at kickoff and mid-way points
Properly designed, a SPIFF program will be self-funding with incremental gross margin on the increased sales volume. It pays for itself!
Our incentive budget rule of thumb is 10% of total budget for each support component. For large programs or simple programs, the percentages could be lower. For programs that are small, short-term or complex, the percentage could be higher.
Download the full eBook to learn all 12.5 steps and how they make your spiff program effective and unforgettable.
Let this Planning & Design Worksheet be your guide.
