Sales & Marketing Management - May/June 2008 - (Page 24)

TECHNOLOGY TRAINING INCENTIVES TRAVEL/MEETINGS Q&A Forget cash, show me the goods! There’s a special place in salespeople’s hearts for high-end merchandise By Mike McCue “That really lessens the impact. Sales managers want their people to remember the rewards that hard work and extra effort bring to them, and a few tanks of gas or bags of groceries just don’t cut it. But give them something exciting that they can touch and feel, and every time they see it they’ll remember that their hard work isn’t just appreciated, but rewarded in a tangible way.” As with most decisions in life, there are trade-offs to using merchandise as well. Unlike gift cards or reward travel, products need to be built, shipped and stored, so using TV sets, audio equipment, luggage or watches in an incentive program requires a little extra thought and planning. Beyer reveals some other tips and insights for the sales or marketing manager who is looking to make a big splash with reward merchandise: SMM: What are the issues a sales leader must under- hen the person driving the wagon wants his team of horses to start pulling, he has to decide whether to use the carrot or the stick. While urgency might occasionally mandate the use of the stick—like when the dastardly villains with guns are riding up the trail in close pursuit—most people agree that motivational tactics are more effective than punitive ones. Still, the horses don’t move when someone promises them a carrot down the road; it has to be dangling right in front of their eyes before they lift their ironshod feet. Human beings are obviously much more complex than equines, but it’s still a valuable lesson for sales managers: Merchandise motivates. It really is that simple. There is a time and place for gift cards, cash, public recognition and reward travel, but if you really want to get people buzzing, show them product! People say that money talks, but merchandise provides an all-out assault on multiple senses: the intoxicating smell of quality leather, the vivid colors on a high-definition TV, the ground-shaking rumble of a high-end surround sound audio system. Receiving a tangible reward for achievement occupies a special place in the human psyche, says Jimmy Beyer, national sales manager with Sony Electronics. “Choosing product for an incentive program has a special impact because you’re allowing people to win something that they might not go out and buy on their own,” he says. “If you give someone a big-screen HDTV, they’re going to be very excited about that. If you give them a cash reward in the same amount, there’s a good chance they will spend the money on something else … maybe even mundane expenses like gas or groceries. A few months later they might not even remember what they spent it on. 24 SALES &MARKETING MANAGEMENT MAY/JUNE 2008 W stand if he or she is considering the use of products and merchandise in an incentive program? JB: There’s a place for all types of incentives, including gift cards and travel rewards, but one of the biggest advantages to giving merchandise is that you can choose the hottest, latest and greatest products on the market. For an electronics company like Sony, there’s a lot of buzz around the release of new products—the newest 1080p “true high definition” LCD flat panel TV or high-end surround sound system—and sales leaders can tap into that energy to generate excitement. Team members can go to a store and see the actual product with their own eyes and hold it in their hands. What’s even more exciting is when we have a few months to work with sales managers on their plans, because then we can offer products that aren’t yet available anywhere, at any price. If managers know that Sony will be releasing a brand new product in three months, they can build their programs around a www.salesandmarketing.com www.salesandmarketingmanagement.com http://www.salesandmarketingmanagement.com

Table of Contents Feed for the Digital Edition of Sales & Marketing Management - May/June 2008

Sales & Marketing Management - May/June 2008 Contents Editor's Letter Brian Tracy University Smart Sales Sales Strategy Smart Marketing Marketing Strategy Smart Management Management Strategy The Minister of Culture Become a Value Merchant Incentives/Motivation Streamlining Business Travel Book Excerpt The Way I See It

Sales & Marketing Management - May/June 2008

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