Sales Contests

Introduction Types of Sales Contests Sales Contest Objectives Planning for a sales contest

SALES CONTESTS
Sales

contests are a part of sales force management. It motivates the sales person to achieve higher sales in a given period of time. It is a special selling campaign, which offers and awards beyond the compensation plans. These are also established incentive techniques used in specific sales situations.

Contd..
The

contests can be both for consumer as for dealers. The customers are motivated to use the products of the company and gain suitable rewards, e.g., in the Cricket World Cup of 1999, many soft drinks companies held contests for customers asking then to predict the future outcome of the games lucky, draws, bumper draws were organised and other gimmicks were used to win the customers. In return the company offered free tickets to England, cash prizes and other attractive gifts to boost the sales of the company.

Types of Sales Contests

A

few win Everybody wins Money Prizes (merchandize or travel is the most common) Recognition is important Family included

Cash
The

policy of giving cash prizes is very rare and is given in special cases.

Merchandise
It

is a superior form than cash. Variety of prizes can be given under this method. Sometimes the trophies are given which are a constant reminder of the past performance and aspirations for the achievement. While giving merchandise the salesmen and their families can be considered to raise the moral of the workers.

Travel
Travel

awards are very popular, extremely desirable and promotable. The salesmen are sent to luxury resorts ad exotic places both in and outside of the country. The travel also provides trips for the winner spouses and their families, which motivates them greatly.

Special Honours and Privileges

Special

honour can be conferred on a salesmen for exemplary performance. These may include membership to prestigious clubs in the city. These types of awards strengthen the sales persons feelings of belongingness and social relations need. It also appeals to their esteem and selfactualisation needs. Special honour can also be conferred on a salesmen by giving certificates and honours in the meeting of the company.

Sales Contest Objectives

Increase dollar volume Stimulate more orders Increase sales orders Build higher unit sales Add customers Secure prospects Build off-season business Push slow items Stimulate balanced selling

Introduce new product Increase use of displays Stimulate dealer tie-ins Revive dead accounts Switch users to your brand Improve sales abilities Intensify training reduce costs Build multiple sales

Planning for a Sales Contest

Gear

the contest to realistic objectives that are commensurate with current marketing plans Set objectives that are within the reach of most salespeople Tie the entire contest into the companys overall theme and objectives Have the payoff based on accomplishment Make sure that the prizes are top quality and not misrepresented

Planning for a Sales Contest (cont.)

Choose

prizes that are promotable that people can get excited about. Try for prizes that people dream about but probably wouldnt buy themselves Include the families of salespeople in the thinking about the prizes. When the family supports the salesperson, the incentive to win is considerably enhanced Keep the program simple to understand and communicate

Planning for a Sales Contest (cont.)

Make

certain everyone knows:

The opening and closing dates of the contest Who is eligible to enter or how they can become eligible The basis for the awards How sales are reported and validated How and when prizes will be awarded and, if travel is involved, when the trip can be taken

Appoint

one person to manage the program who will make sure all bases are touched

Planning for a Sales Contest (cont.)

Develop

initial enthusiasm by having a kick-off meeting wherein the theme, rules, and prizes are introduced Maintain enthusiasm with a follow-through program of mailings, phone calls, and stories in the company newsletters

Planning for a Sales Contest (cont.)

Provide

frequent reinforcement about where each participant stands in relation to the results needed to be a winner Announce the results as soon as the contest is completed, preferably at a victory dinner, and award the prizes immediately Publicize the results. Recognition may be as important or more important than the prizes

To use sales contests effectively sales manager must consider the following points in particular.

1.

2.

3.

The sales contests must be simple. It must be understandable and should not be complicated to understand. The time of the contests must be specific. The target to be achieved must be given clearly for a particular period of time. Their goals must be clear to the salesmen and dealers. The goals must be set in such a manner that they are attainable and not impossible to achieve. S Specific. M Measurable. A Attainable. R Realistic. T Time bound.

Contd ..
4.

5.

Another important consideration is that the contests must be held at an appropriate time (time of the year, season, etc.) keeping is mind the goal be accomplished within the given time frame. The manager must also consider the duration of the contests. This should neither be too long nor too short. Most writers are of the opinion that contests must be between one to four months. The ideal duration is abut 4 6 weeks, in this period enthusiasm and interest of the contestants can be maintained in an effective manner.

Contd ..
6.

7.

The sales force must be kept up to date with the latest information. The changes, if any, in the contest should be intimated immediately. The latest standing in the competition must be known. An adequate supply of promotion material must be provided to maintain enthusiasm. A theme may be selected for promotion, this may revolve round the festival or any national or international event.

Sales contests ideas

#1: All if total sales are above $X at a minimum of X% margin. #2: Salesperson with greatest month to month sales increase. #3: Salesperson with highest sales volume from NEW customers. #4: Salesperson who revives the most PAST customers. #5: All if each salesperson on the team meets or exceeds sales goals. #6: Salesperson with highest single sale or shipment .

 #7:

Salesperson who sells the highest PRE-PAID order. #8: Salesperson with largest sale in a region. #9: Salesperson with the highest total Gross Margin (regardless of dollar value). #10: Salesperson with highest margin on NEW customer. #11: Salesperson with the highest average margin on an EXISTING customers. #12: Salesperson with the highest sales in a certain product line/category.