Question

(2) You are a manager for a local newspaper. Your organization offers a 14 days trial period, which is automatically converted into a monthly subscription with tacit renewal unless the customer objects. You notice that all the trial periods starting either on the 31^st and 30^th of the month have a considerably lower conversion rate to monthly subscription than trials starting in different dates of the month. Your sellers receive each month a fixed bonus of $1000 if he/she meets the target of 500 new trials per month. Would you want change the employee’s incentive scheme? Why/how? Discuss briefly

Answer 1

My organization offers a 14 days trial period, which is automatically converted into a monthly subscription with tacit renewal unless the customer objects. I notice that all the trial periods starting either on the 31st and 30th of the month have a considerably lower conversion rate to monthly subscription than trials starting in different dates of the month. My sellers receive each month a fixed bonus of $ 1000 if he/she meets the target of 500 new trials per month.

Why we want to change the employee's incentive scheme :-

Mostly trial period starting either on 31st and 30th of the month are not converted into monthly subscription and we also pay bonus to our sellers , due to that our company in huge loss. To recover fromthat we need to change the employee's incentive scheme.

How we change the employee's incentive scheme :-

In Previous Policy sellers receive each month a fixed bonus of $1000 if he meets the target of 500 new trial per month. But we issue our New Policy, we give bonus of $1000 if he meet target of 500 person converts into monthly subscription whether it converts in current month or next month. Due to this he does not get bonus of that person which is not converted into monthly subscription in next month.

In Previous Policy sellers take a fraud trial from his own person on 31st and 30th of the month and which is not converted into monthly subscription and take a bonus.

Due to this New Policy , those person not converted into monthly subscription , sellers not get bonus. In future we notice also that all the trial periods starting either on the 31st and 30th of the month have a considerably same conversion rate to monthly subscription than trials starting in different dates of the month