Motivation Works
The Goal
The objective of The Herald Journal, located in Logan, Utah (14,800; 15,300) was to generate 200 new sales each month.
The Story
Each sales representative was given a quota of 20 sales a month, and one sales-crew manager was given a quota of 25 sales a week. The sales representatives received a $200 bonus if the quota was reached by the 15th of the month, but only $50 if they reached the quota after the 15th. Sales managers received $50 for reaching the quota each week and $250 if they reached 100 per month.
“It has been difficult to keep a dedicated group of independent sales people working on commission only,” said Circulation and Marketing Manager Russ Davis. Commissions range from $10 to $20 for each new start, depending the subscription terms.
The success of the promotion was based on whether or not the goal of 200 new starts was met each month.
As a result of the promotion, The Herald Journal has moved away from mostly telemarketing sales to a better mix of sales.
The Moral of the Story
Set meaningful goals for sales representatives so that they are rewarded for performance and remain motivated.
Analyze This.
The Goal
The Toronto Star, located in Toronto (443,153; 656,024) wanted to improve the ROI of the various payment methods of orders sold through door crews..
The Story
An analysis (using R-logic) was conducted to determine the retention, revenue, and costs. A sensitivity analysis was conducted to determine the impact on sales volume and a break-even point for paper volumes and profitability. The analysis phase of the project took approximately four to six hours. While R-logic was helpful in gathering data, the break-even thinking had to be done by a human. While the Toronto Star projected fewer sales based on analysis, the paper expected to break even after approximately 20 weeks, in terms of the number of papers and believed it would be in a positive situation after that.
Even though sales volumes were down from what was expected, retention improvements accounted for a significant improvement in per order ROI, retention, and circulation units. Fewer sales still results in comparable number of papers within 20 weeks of initiation. An issue that was encountered along the way was higher salesperson turnover rates than had been expected. It was suspected that this was because salespeople could no longer sell the "easiest" type of order. As a result of the success, the Toronto Star will be rolling out the same program to all channels. Due to the turnover that resulted, further changes will be instituted during known periods of high turnover.
The Moral of the Story
A careful combination of analysis and human brain power can improve the ROI of various payment methods of orders sold using door crews.