One of the most common mistakes I see with small retailers is the failure to analyze sales revenue. They may know top line sales and bottom line profits, but don’t take the time to understand the exact composition of sales. Learn how tracking Key Performance Indicators can help you find extremely important -and easy- ways to increase revenue.
Looking for ways to get your staff pumped this holiday season? I know one surefire way to light a fire under them….and that’s to pay them!
Even if money is tight, there are ways to incentivize staff for selling more without being a drain on cashflow or margins.
Even if you don’t ordinarily have a bonus program, there’s no reason not to implement one just for the holiday season.
Most retailers earn 20-30 percent of their annual revenue during the holidays. This is the time of year you want to maximize every single sales opportunity! And incentives are a great way to motivate staff.
Here are some DO’S and DONT’S for setting up a successful bonus program.
Understand what motivates your staff. What makes them drool? Depending on their age and tenure, it might be time off or perks like merchandise or gift certificates. It doesn’t always have to be money.
Just offer a blanket reward on all items sold. A bonus program needs to work on both sides. That means your employees get incentivized for meeting their goals – and yours!
Let’s say for example, last year's holiday sales were $100,000 and your goal is to increase that number by 20 percent this year to $120k. Your staff incentives should be based on achieving or exceeding this year’s goal. That way any additional commission or bonus you’re awarding is coming out of new revenue.
Let’s say you’d like to grow sales for a new line or service. Perhaps you’d like to increase average sale. You can create a bonus program around any specific segment of business you’d like!
Tier the bonus structure. Add even more delicious opportunity for your staff after they’ve hit the goal. Using the example above with a goal of $120k, add an additional incentive if you reach $130k. In sales, we call that a BHAG (Big hairy Audacious Goal.) You’d be amazed at the enthusiasm you can generate around a big, fat opportunity.
Train. Train. Train.
Just implementing a program isn’t enough. You need to host regular training to help your staff achieve their goals.
Be afraid to instill a little competition among your staff. Most owners I work with are afraid that competition is divisive but it can create a ton of energy and ultimately, great results!
Make sure your goals are reasonable and achievable. Goals should be a stretch but not so stratospheric that they can’t possibly be met. Shooting too high will only discourage your staff.
Good luck in putting together your bonus program! If you have any questions, email me at email@example.com
Until next time remember,
You can do this!