Case Study: Financial
By utilizing BI’s GoalQuest system, this investments and insurance company realized a sales lift of 18.3%.
Results
- Overall sales lift 18.3% (sales growth over same period prior year)
- Program Return on Investment 7.9 to 1
This investments and insurance company sells mutual funds, life insurance, annuities, critical illness insurance and other investment products. They have operated cash incentives for over 50 years.
Issues
The company wanted to:
- Get its 275-person sales force to reach higher levels of productivity
Solution
- After discussing BI’s goal-setting incentive methodology, the company departed from its traditional cash format.
- BI designed a GoalQuest® incentive targeting investment products. To assure that life insurance products remained in focus, the rules required a minimum number of new life policies, in addition to a dollar goal for investments.
- The first step was to determine the ‘expected’ productivity (or baseline) for each sales rep.
- Sales results from the same period previous year were accessed and slightly adjusted to recognize differences in selling environments. The result was an individualized expectation for each rep. Goal levels were then set at 110%, 125% and 135% of individual baselines.
- Reps self selected their goal level via the program website. The use of baseline-related goals allowed both rookies and experienced reps to select reasonable goals.
- Sales managers and district managers were also motivated to increase sales through a bonus program that tied manager earnings to the success of their reps.
- Reps achieving their goal earned merchandise and individual travel awards. The award values increased exponentially as the goal levels increased.