[ A HANDBOOK ON FMCG SALES ] 6. 6.1. Rewards & Recognition Incentives The sales force should always be incentivized in terms of cash rewards or gifts in order to motivate them to work harder for improving sales. The incentive schemes can be of 2 types a. A Regular Ongoing cash incentive (Monthly/Quarterly) for achieving desired sales results. Typically, there is a full incentive for 100% achievement of Target. For over achieving, the incentive gets multiplied. Normally some companies offer some incentive for achievement between 90% to 100% of the target, an illustration is shown in the table below Table. 6.1. A S.No. Name of SO Target In Volume Achievement Weightage Target In Value Achievement Weightage Final Achievement Final Amount 1 2 3 SO 1 SO 2 SO 3 500 1000 750 480 850 800 50% 50% 50% 10000 15000 20000 9500 14500 21000 50% 50% 50% 96% 91% 106% 5000 0 12000 b. A grand reward Annual/Half Yearly/Quarterly for exceptional performance based on predefined criteria like highest growth, consistent performance, highest sales in a new product, best launch, best visibility etc. An example is given below: Table. 6.1.B Incentive Structure Achievement >95%-99.99% 100% > 100% - 104.99% 105% or more Incentive Amount 50% 5000 6.2. Recognitions In addition to incentives, both at the Sales Force level and Distributor level recognition by senior management is viewed positively. The recognition can be based on pre-defined criteria. This can be in terms of best sales person of the year, distributor with the highest growth etc. 100% 10000 110% 11000 120% 12000 41
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