In sales, a SPIFF is an incentive used to motivate sales teams and reward them for meeting expectations and going the extra mile. SPIFFs may be what your company needs to drive sales excellence, but they do have their disadvantages.
We examine the pros and cons of SPIFFs and how to properly implement one to drive sales performance.
SPIFF stands for Sales Performance Incentive Fund and is a cash or non-cash incentive, with the purpose of motivating sales reps for short-term sales goals.
It is not the same as commission, which is a permanent incentive for sales performance over time. Instead, a SPIFF is a one-time bonus performance payment for selling a particular product or service the company needs to push.
The immediate nature of a SPIFF reward system triggers exciting, high-energy selling motivation. This makes SPIFF highly effective in helping salespeople hit and exceed sales targets.
Consider your team’s makeup and choose the perfect SPIFF incentive to motivate your salespeople.
SPIFF sales incentive programs commonly use cash as flexible compensation. For convenience, SPIFF pay can be on a VISA debit card or another reloadable prepaid card that works like cash.
Utilized by 84% of U.S. companies, non-cash SPIFF awards can be strong motivators. They also add a personal aspect and element of fun. Make sure the rewards are appealing and the recipient has a fair window of time to redeem their prize.
SPIFF sales incentive programs are not a simple fix to raise sales numbers. Without thoughtful planning, SPIFF programs can fail miserably, but there is a multitude of potential gains that are worth the effort of doing a SPIFF right.
SPIFFs can increase sales performance and allow your team to hit sales goals; however, what helps as much as SPIFFs is hiring the right salesperson. Our research-backed predictive analytics solution looks at your existing sales rep data and accurately predicts their sales performance, as well as what types of salespeople will thrive at your organization.
Our AI-powered solution creates your company's unique Sales DNA, which will allow you to predict the performance of future sales hires.
Book a demo today to see how PerceptionPredict can help create a high-performing sales team for your company.