In the incentives space, there’s often debate as to what role cash should play in creating a sales incentive programme. In many industries, especially automotive, cash is the expected form of incentive. But that doesn’t mean it’s the best form.
The reality is 'cash is king' isn’t always true. It often fails to inspire long-term motivation, with many sales reps viewing it as just part of their base compensation.
The most successful sales incentive programmes use more creative, non-cash incentives to generate increased loyalty, stronger emotional connections and, ultimately, more market share. It’s organisations that align their incentives with participants’ needs and motivators that gain the benefits of long-term engagement.
Non-cash incentives are a differentiator of the best sales incentive programmes
The primary pitfall of cash incentives is their fleeting nature. Used and forgotten, these incentives need to be continually given to drive momentum. While financial benefit is important, exploring other motivators can make your incentive programme stand out.
These often-ignored motivators, like feeling recognised and making connections, contribute to participants’ loyalty to your company and brand. For example, tangible rewards can be used multiple times, with each use reminding participants how you appreciate their hard work. And peer-to-peer recognition makes your brand one participants want to work with. Over time, how you made sales reps feel will be remembered and grow into long-lasting loyalty.
Tailor your sales incentive program to direct sales and channel partner audiences
When designing a programme, consider that direct sales teams and channel partners have different motivators and needs. Depending on your programme, you may need to offer a mix of rewards so there’s something to appeal to either audience. This is especially important for channel partners who are balancing many incentive programmes and brands and need to choose your brand over others.
- Direct sales team motivators: As your direct sales team, employees are driven by your company’s value proposition and culture. They want to feel respected and like their contributions are valued. Incentives that build connection and community with their peers, as well as a healthy work/life balance, are coveted.
- Channel partner motivators: As your indirect sales team, independent channel partners juggle multiple vendors and value rewards that help them accomplish their business objectives. Partners often prioritise vendors who are easy to do business with, building strong relationships based on measurable results.
Successful sales incentive programmes appeal to both intrinsic and extrinsic motivation
Our experts frequently recommend a points-based rewards programme that lets you inspire the right behaviours from the right audiences. The many reward options offer something to appeal to everyone you’re trying to reach. Some of those rewards may include gift vouchers and prepaid cash cards, but often they aren’t the rewards of choice when participants are given other options.
Points pooling lets participants work toward bigger rewards, keeping long-term engagement high while also protecting your budget from multiple large cash payouts all at once.
Here are some thought-starters of non-cash incentives that we’ve seen resonate with participants.
Creative sales incentive examples
Experiential rewards
These shared experiences build a sense of community through unforgettable moments that participants could never curate on their own.
- Once-in-a-lifetime travel experiences
- VIP events and concert tickets
- Hands-on gifting experiences with local artisans
Recognition and status incentives
It’s human nature to want to feel appreciated, and these status-granting awards do just that. Each honour also instils the spirit of friendly competition.
- Award ceremonies
- Digital leaderboards and badges
- Peer-nominated honours showcased on a live social recognition feed
- Advisory board invites for top performers
- Concierge-style services
Learning and growth opportunities
Investing in sales reps’ professional growth shows them how much you value them and their contributions to your company.
- Mentorships
- Executive courses
- Certifications
Marketing resources
Channel partners are very busy and constantly being asked to do more with less. Provide them with resources to make doing business easier.
- Ready-to-go marketing materials
- Lead-generation tools
- Digital marketing support
Social impact
Modern sales reps, especially Gen Z, value purpose and being able to make an impact on the world. Offering unique opportunities to do that, especially ones tied to your brand values, can be incredibly meaningful.
- Charity donations
- Volunteer opportunities
- Community events
Lifestyle perks
For direct sales teams, offer incentives tied to their well-being to show you care for them as people, not just performers.
- Wellness programmes
- Family-oriented rewards
- Flexible work hours and other benefits
How to implement creative sales incentive ideas
After identifying which non-cash incentives will resonate with your audiences, you need a plan to implement any programme changes so they have a measurable impact.
Based on our incentive experts’ experience, here are the five elements the best sales incentive programmes share (plus how they relate to updating your reward offerings):
- Clear goals and performance metrics: Set financial and engagement goals to determine how the non-cash rewards are motivating participants to meet your business outcomes.
- Personalised messaging: Add nudges and personalised emails to encourage participation at key touchpoints in the sales rep journey.
- Timely recognition: Make sure manager, peer-to-peer and partner-to-partner recognition is included in your overall solution to build loyalty and connection.
- Reward variety: Include multiple reward options to account for different motivations among your sales audiences.
- Data analytics: Use a mix of programme engagement, redemption data and participant surveys to see if the rewards are resonating.
If your sales incentive programme isn’t getting the results you expect, contact us to build an incentive programme that delivers.