There are few places in Marketing & Sales where just one word can sum up an entire initiative…SPIFF! However, all too often this word is foreign to many Program Managers in the Greenwich CT area.
Wikipedia defines it as “A slang for an immediate bonus for a sale. Typically, SPIFFs are paid, either by a manufacturer or employer, directly to a salesperson for selling a specific product. It is sometimes given as SPIF or SPIFF”. From a practical perspective the abbreviation SPIF stands for Sales Promotion Incentive Fund.
These programs have been around been around for ages and are widely in use with Dealer, Retailer, Contractor, Distributor, Agent, Manufacturer’s Rep and other Channels as well as with Direct sales force. The Primary Advantages of a well-designed and managed SPIFF Program are:
- Enhanced Mind Share with your company branded VISA card in their wallet, driving valued repeat impressions along with SPIFF Program site visits and emails
- Increased motivation stemming from the timeliness of securely (and privately) receiving funds uploaded monthly right on their card
- Flexibility of your participants being able to use the card to make purchases, transfer funds to their bank account or even get CASH from the ATM!
- Insight of being able to go to their personal account on your company branded platform we provide to see details relative to the source of each payment on the card whether Rebate, Incentive, Commission or Refund
- Scalability to be able to expand your SPIFF Program across Lines of Business or geographies
- Cost savings are provided by these programs as an outsourced alternative to having Accounting generate checks which are then mailed or worse, delivered by sales teams in person to the customer
- Pay-for-Performance Model where you fund the SPIFF payout out of the Incremental Gross Margin generated
There are countless examples of the superior Sales, Margin and ROI outcomes for business in Greenwich CT, stemming from the effective design and deployment of SPIFF Programs. One that comes to mind is where a well-known, major TV manufacturer who had invested heavily in an Advertising campaign during a targeted period for a new product they were launching. The ads appeared online, in print, on TV and just about everywhere. Our client took a different strategy understanding that the in-store experience was still a Directed Sale, impacted greatly by the Sales Rep. We designed and administered an integrated SPIFF Incentive Program totally engaging several thousand retail sales reps across channels. Following this, the Consumer End Customer came walking into the stores requesting to see the advertised brand TV and in some cases holding a print out of the ad. The Store Rep responded “I will gladly show you this X model HDTV, but want you to know you will be going home with the Y Brand because of the superior features, performance and value it represents!”
For information on SPIFF Programs contact Doug Press, CEO, The Incentive Group 800-416-2090, firstname.lastname@example.org