Question

1. You have recently been appointed sales manager of an insurance company. Sales are declining and you believe that a major factor causing this decline is a lack of motivation among your sales force. At present, they are paid a straight salary, the size of which depends on length of service. Outline your thoughts regarding how you would approach this situation. How do you motivate sales force using motivation theories in this COVID-19 pandemic process? What specific factors or activities do you feel might be used to motivate members of the field sales force? ( This Lesson: Sales Management )

Answer 1

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Below are the answer to your question

A) Method to motivate sales force using motivation theories in this COVID-19 pandemic process

Sales managers can motivate their team by following any of the theories of motivation, namely, Maslow's hierarchy of needs theory, Herzberg's two-factor theory, goal-setting theory, expectancy theory, and job design theories.

.Sales force motivation is one of the most difficult problem a sales manager faces is the motivation of the sales force. Motivation is the process that produces goal-directed behavior in an individual. It helps to initiate desired behavior in an individual and direct it toward the attainment of organizational goals.

Motivation consists of three elements - need, drive and goal. Satisfaction of the need in the individual cuts off the drive in him to work toward satisfaction of the need. The effectiveness of the sales force plays a crucial role in the success and growth of an organization. In order to attain the goals of the organization, it is essential that the sales force is highly motivated.

Motivation in the sales function refers to the amount of effort a salesperson is willing to expend in the selling job. While some salespersons are self-motivated, there are others who need to be motivated to perform. Sales managers can motivate their team by following any of the theories of motivation, namely, Maslow's hierarchy of needs theory, Herzberg's two-factor theory, goal-setting theory, expectancy theory, and job design theories.

Maslow's hierarchy of needs theory classifies the needs of an individual into five categories - physiological, safety or security, social, self-esteem and self-actualization needs. Physiological needs are the lowest order needs while self-actualization needs are the highest order needs. Further, as lower order needs get satisfied, an individual strives to satisfy higher order needs. Herzberg's two-factor theory states that the job environment of an individual is characterized by two types of factors - hygiene factors and motivational factors.

A salesperson's motivation plays a crucial role in influencing his performance and thereby his productivity. Salespersons having a high level of motivation tend to perform well in the selling job and have high productivity. On the other hand, salespersons who lack motivation tend to be poor performers and fail to achieve their sales targets. Such salespersons hence tend to have low productivity.

Creating desire is part skill and technique, and part behavior and style. In modern selling and business, trust and relationship (the 'you' factor) are increasingly significant, as natural competitive development inexorably squeezes and reduces the opportunities for clear product advantage and uniqueness.

Sales Commission Plans

The best sales compensation programs are ones that are fair, motivating and will achieve the goals of the company. Setting unrealistic sales goals, or putting unrealistic ceilings on earnings power will create discord in the ranks of the top salespeople. Sales commission plans can be rewarding and motivating if done correctly. It can have a negative impact on motivation resulting lower sales when structured poorly. There is no one size fits all process for developing a compensation plan. There are considerations to help develop a compensation plan that contributes to a high performance sales team

There are many forms of commission plans. A commission plan can include many types of compensation and can include multiple formulas. Here are the basic components of most sales commission plans

a) Salary Only : A straight salary compensation plan for salespeople is used for one of several reasons. It is first used when a new sales rep is brought into a company. It is also used when a new territory is opened or a person needs time to come up to speed and perform at the proper level

b) Straight Commission :Straight commission is the right choice if the goal is to turn sales reps loose in a market or territory to maximize sales volume. Straight commission assumes that the non-selling tasks have been minimized in their importance at the expense of sales volume. Another consideration of a straight commission plan is companies have a harder time controlling sales force activities.

c) Combination Sales Commission Plans : Combination sales commission plans offer both a base salary plus an incentive based on production. These pay plans are popular with many companies because they have many advantages while avoiding many of the limitations of the other plans. The salesperson gets a stable salary that smoothens out the highs and lows. Management gets the advantage of having more ability to direct and reward their salespeople to perform tasks and activities not directly related to short-term revenue. The incentive portion of the plan motivates a salesperson to increase sales revenue and profitability

B) List of specific factors or activities to motivate members of the field sales force

Strategies to motivate your sales team:

1.Build trust with the people on your team.

To be an effective leader, you need to have your employees’ trust. The best way to build trust is to be as direct and straightforward as possible. Don’t try to hide things or beat around the bush. If there is an issue going on, let your team know.

2.Get others involved

With everyone getting a seat at the table, you remove hurdles and increase productivity. Your salespeople feel like they’re in the loop and are involved in what’s happening. And based on their collaboration, they can adjust their approach and improve results.

3.Create a culture of recognition

This created a team-oriented mindset in the sales department. Everyone wanted to be that person who was recognized in front of all of their peers. They wanted to be the cause of that dinner. That praise and recognition motivated them to not only work harder, but also work together.

4.Get creative

Don’t be afraid to get input from your team members, too. Be direct and ask them, “What would motivate you?” You may be surprised at their answers. And remember, not everyone feels motivated by the same things. Be open to their input and try different tactics. You never know what might work.

Along with this above methods belows tactics also helpful to motivate members of the sales force

1. Ask your direct reports how they like to be managed.
2. Understand your direct reports' personal and professional goals.
3. Make sure they're covering the basics.
4. Set daily, weekly, and monthly goals.
5. Figure out where the issue lies.

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