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Incenting Marketing Personnel
On top of base salary, how do I tie incentive pay or a bonus to a marketing position? The person who asked the question already pays incentives/bonus to other positions (production, sales) based on performance but was confused as to how tie that pay directly to a marketing person's performance.
Just like the other positions, tie the incentive to something that helps you and the company reach its overall goals. Increase sales volume with new sales people? You'll probably need a larger number of leads. Larger sized projects? This may mean approaching a new market. Want to spend less time selling? Perhaps higher quality leads are needed.
If a company -- perhaps a specialty company selling products like siding, windows, roofing, sunrooms or small, uncomplicated remodeling projects -- needs LEADS pure and simple, it makes sense to base an incentive on increasing the number of leads from those generated in a previous period.. Perhaps use quarterly lead goals and determine the specific percentage increase needed. Of course, this requires a strong sales team who can turn even partially unqualified leads into sales.
Another goal that I find to be more critical for most full line and design/build remodelers might be to increase the number of QUALIFIED leads. In this case, the marketing person may be rewarded in a number of areas -- increased number of repeat customers, referral leads and/or increased sales volume (since typically qualified leads are easier to sell). If this is the goal, it would be counterproductive to incent the marketing director to increase the sheer numbers of leads since often the numbers drop as the marketing becomes more and more targeted and the leads increase in quality.
Also consider a system to reward a marketing program which minimizes the ups and downs in the lead flow. Eliminating the dearth of leads in the slower months is not easy but would make a huge difference in profitability and resource management if done. So this is a wonderful challenge to give a marketing person.
If you want to change your target audience, reward leads coming from that market whether it's a certain neighborhood or demographic group.
No matter what the incentive, be sure to set a firm budget before the program is developed. The marketing person needs to create a program that will meet your goals within reasonable dollar guidelines that you set together.
When you're developing your system, think about the many ways that
marketing can positively affect your company and then be creative!
For more marketing tips, check out The Remodelers Marketing PowerPak from Remodelers Advantage.
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