Hit It & Get It vs. Chance to Win
How do you structure your contests? Do your sales representatives earn chances to win or do you put up a goal and reward them with cash or prizes for achieving the goal? Each sales contest structure has it’s place but how and when do you decide which to go with? There are advantages with each one. With “hit it & get it” contests, everyone knows what they need to do in order to receive the prize. With “chance to win” contests, everyone who accomplishes certain tasks knows that they are in the running to receive the big prize.
The big question is, how do you decide which type of contest to run?
Hit it & Get It
If your guys have had a bad go of it for the last few weeks, a “hit it & get it” is definitely in order. Put yourself in their shoes. They haven’t had any success lately. Their numbers are down. They are embarrassed in the sales meetings. Now is the perfect time to put up a “hit it & get it” so they can win a prize and get that sense of accomplishment. As the old saying goes, “a little success breeds a lot of confidence”.
Confident sales people make more sales. That is a fact. There is no easier way to instill confidence in your sales people than to have them win a contest. In a “hit it & get it” contest, I rarely contest sales. Usually, I contest the activity that results in a sale. This will be different for every industry but for us, it is contacting prospects and cold calling. Look at what it takes in your sales company to generate sales. Is it phone calls? Do personal visits to potential clients lead up to a sale? Whatever the tasks are, make those things the requirement to earn the “hit it & get it” contests.
With this type of contest, you want to keep your contest budget very reasonable. By reasonable, I mean cheap. I’m not one to advocate cheap sales contests but in this case, you want to make sure the budget allows for EVERYONE to win! For us, our salespeople use their personal vehicles to make sales calls. A gas card or free oil change is a big hit with our sales personnel. Even something simple like company t-shirts or ball caps work! You want to have your payout $50.00 or less in order for it to be a successful sales campaign.
Chance to Win
These contests are geared towards the more competitive sales people in your organization. Most sales people are competitive by nature so this will cater to their egos and make them strive to have the most chances in the contest. With “chance to win” contests, you can contest several aspects of the sales process and give your representatives tickets (or chances) for each aspect of the process. In the sales business, leads generate sales calls which generate sales. For a “chance to win” contest, we may give 5 tickets for 10 leads, 5 tickets for each sales call and another 5 tickets for a completed sale.
The way we typically pay out on the contest is your name has to be pulled at least 5 times to win the big prize.
The sales reps can qualify to win in several different categories and oftentimes, we stack the odds for the things that really need improvement (bonus tickets for activity that the company needs). These contests usually run on a monthly basis. While running a “hit it & get it” contest, make sure that your guys don’t rule themselves out as winners.
You may find that some of your sales representatives rule themselves out before the contest even begins if you make the qualifications to difficult to achieve. Make sure that it is relatively easy to qualify to enter but the producers have the most chances to actually win. The great thing about sales contests is that they give you and your sales team an opportunity to fix whatever problems you are having regarding the marketing of the products you are selling and everyone has a fun (and profitable) time doing it.
The most important thing about a contest is to have one! Remember to always have fun!!