Using incentives in sales: getting your staff on board

Using incentives in sales can be a great way to boost your retail profits, but distributor Neil Capstick says the first step to successful retailing is getting staff on-board. Introduce allocation selling Allocated selling involves the salon owner setting a target of products they'd like to sell and this target then being divided by the individual team members' contribution to overall turnover. Each stylist is then given their relevant and achievable target and should be incentivised with rewards for hitting it. Allocated sales targets break down what feels like an ambitious aim into a manageable, achievable goal that everyone can play their part in reaching. It also results in healthy, good-natured competition amongst the staff, particularly if the right rewards and incentives are in place. Introduce an objections board When targets are introduced, teams often have objections. It's natural, but also easily resolved. Rather than letting these concerns go unaired, an objections board allows for team troubleshooting and a sharing of sales tips and techniques - also the salon owner can then work through any issues raised with the team. These sessions invariably should end on a high - with the team feeling motivated simply by having their reservations listened to and addressed. Always offer incentives When offering incentives to staff to motivate them to hit their targets, I always suggest tailor-made rewards. Asking the staff what they want is a great way of involving them further in the process, as well as ensuring they are going to be motivated to get their hands on something they really want. Anything from equipment and training, to vouchers, treats or even cash rewards make great incentives. Keep staff informed of the commercial value of retail When staff are performing in the sales department, not only are they enjoying the motivational benefits of sending their customers away fulfilled and happy, but can easily contribute 20% - 30% to the salon's average turnover. Not bad when, at present, the average turnover of retail sales for most salons sits at 5%. However, not many salon staff understand the power of retail sales. That's why it's important they are not only clear about the potential profits they can contribute to, but how their individual input can fundamentally affect the turnover of the business they work for - and you'll find this is one of the most motivational messages you can give to your staff.