Increase Revenue From 80% of Your Performers
Every company has its high performers. The Pareto Principle states that 80% of the work is done by 20% of the workers. Of course those top performers should be rewarded for their hard work. They’re the ones doing the majority of work, aren’t they? Well sure, it makes sense to reward those who contribute the most. However, there isn’t much you can do to incentivize top performers to increase their productivity since they are already giving it their all. However, if you look to the bottom 80% of your performers, suddenly there is far more potential for growth.
Let’s take a look at a few ways to improve the bottom 80% of your team, particularly in a sales channel environment.
If, for example, a sales region is simply not hitting a quota regularly, you can create promotions to try and incentivize better behaviors.
Exactly what types of promotions are beneficial is a topic for another time. However, if you want to convert sales people to be in the top 20% of performers, you will want to make sure your promotions are encouraging steady, gradual improvement instead of quick win solutions. Quick incentive promotions may get a small spike in productivity for the bottom 80% of performers. But if you truly want to increase profits over long term, you need to focus on behaviors of your sales people, not just the numbers.
Quite often, your top performers simply know more information about your promotions, where your bottom performers might not always be as informed. If your sales people work indirectly for you, you may want to use a training feature to reach those last few feet of the sales channel.
By making information about your product easily accessible, entertaining, and perhaps with an incentive attached to it, you create an easy way for your indirect sales people to learn more about your product. With better training on your product, your sales people will be far better equipped to sell your product over the competitor’s.
The trick is to try and create ways to entice the bottom 80% of your performers to participate in your training program and retain the information. To do this, you will want to look at your company and its values and find a unique way to gain participation that is unique to your brand. Perhaps videos, games, or incentives might be somewhere to start.
Identify 80-20 Performers
The best way to increase productivity of the bottom 80% of your performers is to identify exactly who they are. With analytical tools, you can see where the top and bottom sales numbers are coming from. This is obviously a useful tool for so many reasons (such as with advertising or partnerships), but in this context, you can find out what regions or stores are not performing as well as others. You can also see which regions or stores simply need a slight push to really make a difference.
With this information gathered, you can create promotions and focus your attention on the areas you would like to improve. Look at how many people are taking your training course, and how many people are even registered in your incentive platform. It might be that certain areas just don’t know about the resources you have available. By focusing your search, you can find out the best way to convert sales people in the bottom 80% of your performers to the top 20%, and thus increase overall revenue.