Do you ever feel like your reps are just checking objective boxes?
In the beverage industry, using “pay for performance” (PFP) and “monthly business objectives” (MBOs) is a compensation structure where sales reps are paid based on doing certain activities in addition to how many cases they sell. This means that the amount of commission they earn is tied to the number of objectives they achieve on a monthly basis. This is the classic way companies provide an incentive for sales reps, but can come with some drawbacks.
Unintended consciences of objective-based selling
When a sales compensation structure is based on PFP/MBOs, there is a risk that sales reps may focus solely on achieving the minimum performance requirements necessary to earn their commission, rather than striving for higher levels of performance.
This can happen if the performance requirements are set too low, or if the sales reps are not motivated to exceed the minimum requirements. In this case, the sales reps may simply “go through the motions” and do the minimum amount of work necessary to earn their commission, rather than putting in extra effort to achieve higher levels of performance.
This can be detrimental to the organization, as it can lead to lower levels of sales and overall productivity.
Get your reps out of going through the motions
There are several strategies that companies can use to prevent their sales reps from simply “going through the motions” and focusing only on achieving the minimum performance requirements to earn their commission. Some of these strategies include:
- Setting challenging but achievable performance goals: If the performance goals are set too low, sales reps may not be motivated to exceed them. On the other hand, if the goals are set too high, sales reps may become discouraged and lose motivation. Therefore, it is important to set performance goals that are challenging but achievable, so that sales reps are motivated to work hard to achieve them.
- Providing ongoing training and support: Sales reps who are well-trained and supported are more likely to be motivated and engaged in their work. Companies can provide ongoing training and support to help sales reps develop the skills and knowledge they need to be successful, and to provide them with the resources and tools they need to achieve their performance goals.
- Recognizing and rewarding high levels of performance: Recognizing and rewarding high levels of performance can provide an incentive for sales reps to strive for excellence. Companies can use a variety of rewards, such as bonuses, promotions, or public recognition, to motivate sales reps to achieve high levels of performance.
- Regularly reviewing and adjusting the performance goals: As market conditions and other factors change, performance goals that were previously challenging may become too easy or too difficult. It’s important for companies to regularly review and adjust their performance goals to ensure that they remain challenging but achievable. This can help keep sales reps motivated and engaged in their work.
Overall, the key to preventing sales reps from simply “going through the motions” is to create a positive and supportive work environment that encourages sales reps to strive for excellence and rewards them for their efforts.
How can VXP help?
The VXP team can help your sales reps break out of box-checking by providing them with specialized training and guidance. This can include coaching on effective sales techniques, helping them to identify areas for improvement in their approach, and providing support and accountability to ensure that they are consistently working to improve their performance.
In addition to providing training and support, VXP can also help your sales reps by conducting assessments of their current sales processes and identifying areas where they can be improved. This includes the VXP team analyzing data on sales performance and identifying trends and patterns that may be hindering a sales rep’s success. The VXP team can then work with your sales reps to develop strategies and tactics to overcome these challenges and improve their sales results.
Another way that VXP can help your sales reps is by providing them with access to new and innovative sales tools and technologies. The VXP sales app can help your sales reps to streamline their processes, improve their efficiency, and gain a competitive edge in the marketplace. The VXP System includes customer sales data management, sales automation with “recommended to sell” and “recommended to remove” tools, and other cutting-edge technologies.
The VXP team can be a valuable resource for helping your sales reps break out of going through the motions and achieve their full potential. Reach out to the VXP team today to schedule your sales transformation workshop as a first step to getting your team out of checking boxes and into making profitable sales decisions.