Top-performing companies are more likely to motivate their sales teams with non-cash rewards and incentives, research from the Aberdeen Group shows. Specifically, a recent Aberdeen survey, distributed by the Incentive Research Foundation (IRF), found that firms with formal internal sales employee recognition programs had 14.8% higher team quota attainment and 5.9% higher customer renewal rate.
Other results showed leading companies – called Best In Class by Aberdeen researchers – are 11% more likely to offer employees verbal praise, 90% more likely to offer public recognition and 94% more likely to offer peer-to-peer recognition for progress toward goal versus all other firms. These top firms are also 23% more likely than all others to offer group travel and 75% more likely to offer company-sponsored events. Over half of respondents listed non-cash rewards and recognition as an important part of sales performance management.
The survey also found a wide variety of metrics favor the outsourcing of incentive management, offering an opportunity for distributors to create custom programs for businesses. Organizations that relied on outside firms to run their incentive programs showed higher lead conversation rates and lower average sales cycles, the IRF said.