How Do Specialized Personal Incentives Enhance Sales Performance

According to the article by Patil and Syam, 2018, asserts that specialized personal incentives are organizationally influential interventions since they comprise of state determined effects. That is, those salespersons who earn SPIs within a given time are at a higher chance of earning the SPIs in the next given time as compared to those who do not. They thus conclude that earning of SPIs by salespeople are important as they have a double effect which involves, a direct positive link with better sales performance within the current time and an indirect positive connection to SPIs within the next given time and ultimately improved sales performance even in the next period (Patil  & Syam, (2017).

The article involves the building of analytical models as well as the empirical analyses of the data from the field. The article is all about a research on the sales force organization and it seeks to cover most favorable sales compensation plans taking account of the setting sales quotas and the designing of sales competition. The article also focuses on the analytics concerned with sales pipeline management, problems facing team selling and concerns within versus outside sales. One of the strengths of this article is the fact that it strongly emphasizes the use of an optimal based analytical method, using data so as to address the various issues in sales force management. On the other hand, the weakness of this article is that it fails to clarify the reason as to why the high performing sales personnel’s profited from earning from the SPI while the high performing sales personnel did not profit that much when the quarterly quotas were used. This leaves the readers at a dark state where the question of why is left unanswered. However, the article recommends business managers to implement an intervention that encompasses an increase in cash incentives connected with SPIs earning.

 

 

 

 

 

 

 

 

 

 

 

 

References

Patil, A  & Syam N, (2017), “How do Specialized Personal Incentives Enhance Sales Performance? The Benefits of Steady Sales Growth”, Journal of Marketing.