Archive for the ‘Commission schemes’ Category

Make sure your telesales team is targeted on what you are targeted on

Friday, May 7th, 2010

Make sure your telesales team is targeted on what you are targeted on. Obvious advice in theory, but not every organisation with a telesales or telemarketing team follows this. It can be easy to dismiss the need to do this on the basis that the management looks after the commercial elements for instance.  We have worked with companies in the past who only target their team on sales and then have to manage a large volume of unprofitable orders.

Make sure your telesales targets reflect corporate goals

Make sure your telesales targets reflect corporate goals

We’re just starting a programme with a client just outside Birmingham who has a large team selling items business to business over the phone. We carried out a team audit with them recently (more details of team audits at www.tomarket.co.uk/teamaudits.php.)

The team actively promotes the fact that the goods are free on approval and “if you don’t want them, we’ll simply pick them up from you free of charge.” Also phrases such as “no obligation” appear frequently. Clearly this strategy is intended to get as many products out as possible which is great – but there is no sense of them being selective at all with who they mail out to. The result is that the company feels that too much of it’s sales activity is unprofitable.

The team is targeted on products sent out. It doesn’t take into account how many products come back.

It is really important that you understand what your business needs and ensure at least some of this is fed through to the telesales or telemarketing team on the front line. It pays to make sure everyone shoulders the responsibility for the overall success of the company. And the danger of keeping any part of  your team in the dark is that first they don’t understand what is important to the organisation they are working for, and worst they may not realise that what they are doing is counterproductive. Furthermore, how can you ever discipline someone for poor performance if they have every reason to believe they’re doing a good job?

What is the difference between commission and bonus ?

Tuesday, December 8th, 2009

What is the difference between commission and bonus ? This is a question we’re asked frequently by clients. Not only what is the difference, but equally importantly, “do we need both of them ?” and “how can we use them both to motivate our team in different ways ?”

Get your commission and bonus schemes right and this is what should happen to sales

Get your commission and bonus schemes right and this is what should happen to sales

Indeed we think commission, bonus and campaign incentives all have a place in how you reward your telesales or telemarketing team. It is worth spending some time thinking these elements through too, because if you get it right you can motivate your telephone team to produce better results, increased sales, more appointments, higher numbers of quotations etc. You don’t mind paying more if you get more do you ? However you don’t want to pay more for the same or less !

Commission should be a regular payment for doing the telesales or telemarketing job well. It should be a constant, and the best performers in your team should earn the most. In addition it must be easy (for them) to work out at the point of getting the order. After all if it isn’t, it can’t motivate them can it ?! So a percentage of order value is a common version of this.

“My commission rate rewards me at 2% of order value.” “Great so if I can get this deal for £500 this morning, that means that will be £10 in my sky rocket (or pocket – for those of you not familiar with cockney ryhming slang !)

Bonus however is for what you reward individual members of your team with on top of their core job. So if you sell any of the platinum service plan we give you £50. You can tailor this then to sales of your more profitable products or services, or end of line stock that you want to clear etc. Alternatively it could be for achievement of quarterly target. Bonuses then should be for specific (relatively) short run campaigns or business objectives. This allows you to direct the guns in a particular direction until the objective has been achieved, or time has passed.

Then on top of commission and bonus there are incentives and for a phone team these are the fun bit. Very short term and with a high profile to add some energy and dynamism to a team’s activity and performance in the short term. But this is perhaps a subject for another day. In the meantime, there is a slightly more indepth article at ezine articles. Follow the link here http://ezinearticles.com/?Should-I-Pay-Commission,-Bonus-Or-Run-Campaigns-For-My-Telesales-Or-Telemarketing-Team?&id=2088836

Commission or bonus and incentives for my telesales team ?

Thursday, November 26th, 2009

Commission or bonus and incentives for my telesales team ? What schemes should I motivate them with ? How much ? Should it be regular commission or one off bonuses ? What works best ? How much is all this going to cost me ? And what if I end up paying more for the same ?! How do I avoid this ?

Telesales commission and bonus schemes

Telesales commission and bonus schemes

These are some of the questions we get asked by clients frequently. 

Should I pay commission, bonus or run campaigns for my telesales or telemarketing team ?

Well why not do all 3? They all have their place and they can do different things for you.

“It’ll cost me too much” I hear you cry! Well that depends on how much you award in each category doesn’t it? After all if someone is successful, then you’re happy to pay them an amount up to the margin or profit they are making for you – right?

You want to encourage the top performers don’t you? And you don’t want them wandering off to another job – or worse still your opposition.

I believe elements of commission, bonus and campaigns all have their place in your remuneration system. They each do different things. Click here to find the full article http://ezinearticles.com/?Should-I-Pay-Commission,-Bonus-Or-Run-Campaigns-For-My-Telesales-Or-Telemarketing-Team?&id=2088836  we’ve had published at ezine articles.

And if you want to discuss a tailored system that would be right for your team, give us a call on 01858 461148 or simply e-mail us your question to info@tomarket.co.uk