{"id":3225,"date":"2025-04-11T11:09:51","date_gmt":"2025-04-11T01:09:51","guid":{"rendered":"https:\/\/www.biworldwide.com\/en-au\/?p=3225"},"modified":"2025-04-11T11:09:52","modified_gmt":"2025-04-11T01:09:52","slug":"are-cash-based-incentives-a-thing-of-the-past-in-automotive-sales","status":"publish","type":"post","link":"https:\/\/www.biworldwide.com\/en-au\/our-work\/blog\/are-cash-based-incentives-a-thing-of-the-past-in-automotive-sales\/","title":{"rendered":"Are cash-based incentives a thing of the past in automotive sales?"},"content":{"rendered":"<div class=\" has-enable-tall-hero has-content-align-center has-overlay has-overlay--dark alignwide wp-block-biw-block-theme-hero\">\n\t<div class=\"biw-hero__grid\">\n\t\t\t\t\t<div class=\"biw-hero__breadcrumbs\">\n\t\t\t\t<div id=\"breadcrumbs\" class=\"breadcrumb-nav__wrapper\"><span class=\"breadcrumb-nav\"><span><a href=\"https:\/\/www.biworldwide.com\/en-au\/\">Home<\/a><\/span><\/span><\/div>\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"biw-hero__media has-dynamic-border-radius\">\n\t\t\t\t\t\t\t\t\t<div class=\"biw-hero__overlay overlay-dark\"><\/div>\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.biworldwide.ca\/wp-content\/uploads\/sites\/8\/2025\/02\/Case-study-automotive-sales-incentive_1616x883.jpg\" alt=\"automotive sales incentive program\" class=\"biw-hero__bg-image\" style=\"object-position: 0% 34%;\">\t\t\t<\/div>\n\t\t\t\t<div class=\"biw-hero__content\">\n\t\t\t\t\t\t<h1 class=\"biw-hero__title\" style=\"line-height: 1.2\">\n\t\t\t\tAre cash-based incentives a thing of the past in automotive sales?\t\t\t<\/h1>\n\t\t\t\t\t\t\t\t\t\t<div class=\"biw-hero__text\">\n\t\t\t\t\t\n\n<p>The automotive industry is undergoing fundamental changes. Automotive dealerships are considering innovative ways to compensate sales staff due partly to shrinking margins, high turnover rates, and a competitive talent marketplace. What can Original Equipment Manufacturers (OEMs) in the\u00a0<a href=\"https:\/\/www.biworldwide.com\/en-au\/who-we-serve\/automotive\/\" target=\"_blank\" rel=\"noreferrer noopener\">automotive sector<\/a>\u00a0do to support their dealers without incurring additional costs?<\/p>\n\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p><br>Our experience in applying behavioural economic principles into our clients\u2019 sales incentive programs shows that diversifying the rewards opportunities not only drives sales, but also increases employee retention and customer satisfaction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Right Reward. Right Place. Right Time.<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.biworldwide.ca\/wp-content\/uploads\/sites\/8\/2025\/02\/cash-based-incentives-in-auto-sales-1024x357.png\" alt=\"A pyramid chart illustrating layers of employee recognition.\" class=\"wp-image-2993\" \/><\/figure>\n\n\n\n<div style=\"height:13px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>For some years, we\u2019ve advocated a point of view called\u00a0<strong>\u201cmove the middle\u201d<\/strong>, where incentives are designed to engage salespeople across the spectrum of performance and productivity. We conducted a study using sales results gathered during non-incentive periods from 150 companies and more than 50,000 salespeople. The study found:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>More net lift is available from the bottom 80 percent than the top 20.<\/li>\n\n\n\n<li>Any incentive program aimed at the top 20 percent eliminates more than half of the top producers.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:13px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Salespeople are intrinsically motivated to succeed, but relying solely on intrinsic motivation is simply not enough. By diversifying your cash-only incentives to include a variety of&nbsp;<strong>hedonic rewards<\/strong>&nbsp;(<a href=\"https:\/\/www.biworldwide.ca\/rewards-marketplace\/experiences-marketplace\/\" target=\"_blank\" rel=\"noreferrer noopener\">experiential<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.biworldwide.ca\/rewards-marketplace\/employee-points-based-reward-program\/\" target=\"_blank\" rel=\"noreferrer noopener\">luxury merchandise<\/a>&nbsp;rewards) trigger extrinsic motivation, which will keep salespeople motivated longer and help meet sales targets more often.<\/p>\n\n\n\n<div style=\"height:13px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Our research shows that a greater variety of incentive types are associated with increased sales. If you truly want to influence results, cash won\u2019t get you there. Cash disappears into day-to-day necessities, but hedonic rewards inspire emotional commitment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Use incentive programs to drive results beyond sales<\/strong><\/h3>\n\n\n\n<p>Incentives can be used to drive different business outcomes by creating excitement and focus on specific objectives for a limited time period, to inspire people to change behaviour or perform at a higher level. For example, our&nbsp;<a href=\"https:\/\/www.biworldwide.ca\/sales-channel-incentives\/salesmaker\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn2Earn\u2122 programs<\/a>&nbsp;have proven to be very effective in better educating the sales force, which, in turn, helps them be more effective with customers. One client implemented a customer-centric program which, in the first year, yielded a 31 percent decline in employee turnover and a four-point increase in customer satisfaction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Final thoughts<\/strong><\/h3>\n\n\n\n<p>Incentives can be used to drive different business outcomes by creating excitement and focus on specific objectives for a limited time period, to inspire people to change behaviour or perform at a higher level. For example, our&nbsp;<a href=\"https:\/\/www.biworldwide.ca\/sales-channel-incentives\/salesmaker\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn2Earn\u2122 programs<\/a>&nbsp;have proven to be very effective in better educating the sales force, which, in turn, helps them be more effective with customers. One client implemented a customer-centric program, which in the first year yielded a 31 percent decline in employee turnover and a four-point increase in customer satisfaction.<\/p>\n\n\n\n<p>When redesigning or implementing a sales incentive program, consider the following:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Despite the benefits of moving away from the legacy structure, people will be put off that you have taken something away and replaced it with something new.<\/li>\n\n\n\n<li>Avoid replicating the earning opportunities, measures or rewards that were common in the legacy program. Do something different so that the new incentive program is not so easily compared to the old program. Make the new program a platform for a new message, new branding, and new focus.<\/li>\n\n\n\n<li>Consider that sales uplift runs 5-10 percent higher during busy periods because the opportunity to sell is greater. When salespeople are putting in maximum effort, they increase their closing rate, and their compensation plan should reflect that.<\/li>\n<\/ol>\n\n\n\n<div class=\"wp-block-group  layout-columns-10 has-global-padding is-layout-constrained wp-container-core-group-is-layout-0b5f5b40 wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-base-three-color has-base-two-background-color has-text-color has-background has-link-color  has-dynamic-border-radius  layout-columns-4 wp-elements-2c9b4a84883ffae211f2f7e67b037aa1 has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-645d8aa7 wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--60);padding-right:var(--wp--preset--spacing--60);padding-bottom:var(--wp--preset--spacing--60);padding-left:var(--wp--preset--spacing--60);background-image:url(&#039;https:\/\/www.biworldwide.com\/wp-content\/uploads\/2025\/03\/Multi-Channel-Mkt-1728x600px.jpg&#039;);background-size:cover;\">\n<h2 class=\"wp-block-heading\">The best way to get started is to get in touch!<\/h2>\n\n\n\n<p><strong>Speak to a member of our expert team to learn how our solutions can engage your channel.<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a aria-controls=\"modal-header-lead-gen\" aria-haspopup=\"dialog\" href=\"#\" modal-id=\"header-lead-gen\" role=\"button\" tabindex=\"0\" class=\"wp-block-button__link wp-element-button modal-trigger core-button-trigger\">Let&#8217;s Talk<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The automotive industry is undergoing fundamental changes. Automotive dealerships are considering innovative ways to compensate sales staff due partly to shrinking margins, high turnover rates, and a competitive talent marketplace. What can Original Equipment Manufacturers (OEMs) in the\u00a0automotive sector\u00a0do to support their dealers without incurring additional costs?<\/p>\n","protected":false},"author":27,"featured_media":1101,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"associated_experts":[],"featured_image_focal_point":{"x":0.5,"y":0.5},"footnotes":""},"content-topic":[102,100,99,101],"problem-space":[13],"class_list":["post-3225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","content-topic-automotive","content-topic-channel-engagement","content-topic-channel-loyalty","content-topic-channel-smart","problem-space-channel-engagement"],"featured_media_global":{"id":2240,"title":{"rendered":"Automotive-truck-1300x732px"},"description":{"rendered":""},"caption":{"rendered":""},"alt_text":"A red off-road vehicle is parked on a rugged, rocky trail surrounded by mountainous terrain. Sunlight streams through cloud cover, illuminating the landscape with a warm glow. Vegetation is sparse along the trail.","media_type":"image","mime_type":"image\/jpeg","media_details":{"width":1300,"height":732,"file":"2025\/02\/Automotive-truck-1300x732px.jpg","filesize":277879,"sizes":{"medium":{"file":"Automotive-truck-1300x732px-300x169.jpg","width":300,"height":169,"mime-type":"image\/jpeg","filesize":19557},"large":{"file":"Automotive-truck-1300x732px-1024x577.jpg","width":1024,"height":577,"mime-type":"image\/jpeg","filesize":134982},"thumbnail":{"file":"Automotive-truck-1300x732px-150x150.jpg","width":150,"height":150,"mime-type":"image\/jpeg","filesize":11597},"medium_large":{"file":"Automotive-truck-1300x732px-768x432.jpg","width":768,"height":432,"mime-type":"image\/jpeg","filesize":85209}},"image_meta":{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0","keywords":[]}},"source_url":"https:\/\/www.biworldwide.com\/wp-content\/uploads\/2025\/02\/Automotive-truck-1300x732px.jpg"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Are cash-based incentives a thing of the past in automotive sales? - Australia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.biworldwide.com\/en-au\/our-work\/blog\/are-cash-based-incentives-a-thing-of-the-past-in-automotive-sales\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are cash-based incentives a thing of the past in automotive sales? - Australia\" \/>\n<meta property=\"og:description\" content=\"The automotive industry is undergoing fundamental changes. Automotive dealerships are considering innovative ways to compensate sales staff due partly to shrinking margins, high turnover rates, and a competitive talent marketplace. 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