SalesForceXP: September/October 2008 Coverstory: A Warehouse Of Motivatiom - How Harrah’s Boosts Group Sales with Non-Cash Incentives

COVERSTORY

Capturing the Hearts - and Minds - of Independent Sales Reps

Larger commissions don't command a lot of attention, but offer a 52-inch flat-screen and watch the sales soar!

There are universal truths about salespeople that savvy managers account for when developing strategies. One of these, says Wayne Robertson, a co-founder of RZ Financial, a Minnesota-based wholesaler of insurance products and annuities, is that reps are quick to disassociate pay with performance. Whether they're selling corporate jets or cafeteria supplies, he says, "once they spend their commission check, they forget about you." Until the next one arrives, that is.

That's why RZ Financial created a non-cash incentive program of its own last year despite the fact that most of its carriers - companies like Allianz, Ing and North American Co. - offer their own incentive program to the 2,500 independent agents that RZ Financial works with.

RZ worked with Incentives Marketplace (www.incentivesmarketplace.com), a Twin Cities-based provider of non-cash incentive programs, to create a points-based program in which agents could earn merchandise, trips and event tickets.

"Initially, everything was fair game. Now we've started to target specific product lines during certain periods," Robertson says. He estimates that the program has increased sales by 20 percent and, perhaps more importantly, increased loyalty.

"I know we've taken contracts away from other wholesalers," he says, "because we're seeing multiple contracts from agents who we used to get single lines from."

Jim Sandy says he was after much the same thing when he implemented a similar incentive program through Incentives Marketplace earlier this year. Sandy is vice president of dealer development for Tandus, a Georgia-based manufacturer of carpet for commercial real estate projects throughout North America.

A general contractor buys floor covering from a dealer, who in turn purchases the carpet from any number of manufacturers. Sandy's campaign, launched in February (the beginning of his company's fiscal year) is designed to get those independent dealers to sell more Tandus carpet than the competitive brands.

Historically, Tandus and other manufacturers offered incentives - trips, cash rebates, etc. - to the owners of independent dealers, but not to individual salespeople at those dealer companies. Sandy wanted to make the additional connection, but not with all of his dealers.

"My mandate was to come up with a way to increase our dealer partnerships, but the truth is if you're selling to anybody and everybody, you're not important to anyone. There's no loyalty on their part or ours," he says, explaining why the points-for-merchandise program is being offered to only a fraction of his universe of some 3,000 floor contractors.

They've done more than just think of Tandus. Sandy says sales are up 12 percent for the year across the board and by 20 percent within the group that is participating in the incentive program.