Most executives use incentive compensation plans to motivate staff and increase sales. As more companies make the transition to incentive compensation software, though, VPs of sales and executives have found other unexpected benefits to using the programs, namely, benefits that don’t have to do with internal teams – but clients.
Incentive compensation management software can help a company improve client retention rates, in addition to improved employee behavior. At sales-focused businesses, a strong client base is vital to staying in business and keeping up with competitors. Keep reading to find out how ICM software can help a company improve client retention rates:
Increase staff commitment levels
An executive can use an ICM plan to reward positive behavior such as high sales numbers and low absenteeism. By financially rewarding staff for increased performance, an executive can promote company commitment levels. In order to bring in higher sales, a team member will have to remain focused on the task at hand in order to earn a bonus, merit increase or day off.
By committing to higher sales, whether they are aware of it or not, workers will be focusing their efforts more directly on clients. A staff member who is invested in an ICM plan will also have to dedicate themselves to client communications, effective sales tactics and improved attendance.
Focus on customer assistance
Not only will a solid ICM program promote commitment to a company and customers, an executive can use software programs to specifically set up rewards for when an employee’s efforts are directly related to retaining a client. When an individual knows they may be able to earn recognition and rewards for improving customer loyalty, they will find ways to improve the customer experience.
Salespeople will communicate more effectively, follow up with sales leads and prioritize high-quality product or service delivery. An ICM plan that rewards effective customer assistance will naturally lead to higher client retention rates.
