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anigoYou're a sales person. Ok, your title is sales person. Actually your title is Director of Business Development. There are 4 of you working for Wally's widgets. Your goal is to get as many people to buy widgets from Wally's as humanly possible.
The salespeople...er... Directors of Business Development... can use any method in their power to get people to come to Wally's. They can hand out flyers at home shows. They can take contractors out to lunch. They can talk to people on the street. Some DBDs work very hard to get as many people in the door as possible. Some don't. Some work hard but at the wrong thing - so they talk to people on the street, and 90% of the people don't care, but the DBD still thinks he or she is working hard even if the outcome isn't what is desired.
The old boss promised to bonus the DBDs $1 for every widget that was sold by the recommendation of the DBD. So if the DBD told General Joe Customer to go to Wally's, and General Joe went to Wally's and bought a widget, then the DBD should get a dollar. The thing is though, that Wally's POS machine only takes payments. No place or opportunity to give information from General Joe Customer on who told them to go to Wally's. Most of the information has been gathered by word of mouth or by the Widget Cashiers writing it down on the receipt copies (if they think of it, and they don't usually think of it) - which are usually promptly lost. On top of that Wally's has a media department that puts ads in local papers and sends out emails and stuff.
None of the DBDs have been given any bonuses. Ever. They're starting to get a bit miffed about this.
You're a new boss. How do you create an incentive program that rewards the DBDs and makes them want to work harder at getting more people buying Wally's Widgets? Remember, there's virtually know way to know if General Joe heard about Wally's from the DBD or from the newspaper or was just some guy who came in off the street.
The salespeople...er... Directors of Business Development... can use any method in their power to get people to come to Wally's. They can hand out flyers at home shows. They can take contractors out to lunch. They can talk to people on the street. Some DBDs work very hard to get as many people in the door as possible. Some don't. Some work hard but at the wrong thing - so they talk to people on the street, and 90% of the people don't care, but the DBD still thinks he or she is working hard even if the outcome isn't what is desired.
The old boss promised to bonus the DBDs $1 for every widget that was sold by the recommendation of the DBD. So if the DBD told General Joe Customer to go to Wally's, and General Joe went to Wally's and bought a widget, then the DBD should get a dollar. The thing is though, that Wally's POS machine only takes payments. No place or opportunity to give information from General Joe Customer on who told them to go to Wally's. Most of the information has been gathered by word of mouth or by the Widget Cashiers writing it down on the receipt copies (if they think of it, and they don't usually think of it) - which are usually promptly lost. On top of that Wally's has a media department that puts ads in local papers and sends out emails and stuff.
None of the DBDs have been given any bonuses. Ever. They're starting to get a bit miffed about this.
You're a new boss. How do you create an incentive program that rewards the DBDs and makes them want to work harder at getting more people buying Wally's Widgets? Remember, there's virtually know way to know if General Joe heard about Wally's from the DBD or from the newspaper or was just some guy who came in off the street.