{"id":4011,"date":"2026-03-17T15:53:59","date_gmt":"2026-03-17T04:53:59","guid":{"rendered":"https:\/\/www.biworldwide.com\/en-au\/?p=4011"},"modified":"2026-03-17T15:54:01","modified_gmt":"2026-03-17T04:54:01","slug":"are-cash-based-incentives-a-thing-of-the-past-in-automotive-sales-2","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-2\/","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--light 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-light\"><\/div>\n\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.biworldwide.com\/uk\/wp-content\/uploads\/sites\/16\/2025\/05\/New-homepage-hero-template-file-1728x1080px-10.png\" alt=\"Close-up view of several parked cars in a row, with a colorful pink and blue overlay creating a vibrant, abstract effect. The focus is on the front wheel and headlight of the nearest car.\" class=\"biw-hero__bg-image\" style=\"object-position: 39% 47%;\">\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<h2 class=\"biw-hero__subtitle\">\n\t\t\t\t\tThe automotive industry is undergoing fundamental changes. \t\t\t\t<\/h2>\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>What can Original Equipment Manufacturers (OEMs) in the\u00a0<a href=\"https:\/\/www.biworldwide.com\/en-au\/who-we-serve\/automotive\/\">automotive sector<\/a>\u00a0do to support their dealers without incurring additional costs?<\/p>\n\n\n\n<p><\/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<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<p>The automotive industry is undergoing fundamental changes. According to <a href=\"https:\/\/www.bdo.co.uk\/en-gb\/insights\/industries\/retail-and-wholesale\/motor-salary-survey\">BDO\u2019s Motor Salary Survey 2024<\/a>, UK automotive dealerships are facing shrinking margins and high turnover rates, with average salaries decreasing for the first time in four years. Incentivised pay dropped by 10%, and staff turnover remains high at 29%, reflecting the financial pressures and competitive talent landscape in the sector.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>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\n\n<p>Our experience in applying <a href=\"https:\/\/www.biworldwide.com\/en-au\/behavioural-economics\/\">behavioural economic principles <\/a>into our clients\u2019 sales incentive programmes 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\">Right Reward. Right Place. Right Time.<\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter 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<p>For some years, we\u2019ve advocated a point of view called&nbsp;<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 programme aimed at the top 20 percent eliminates more than half of the top producers.<\/li>\n<\/ul>\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\u00a0<strong>hedonic rewards<\/strong>\u00a0(<a href=\"https:\/\/www.biworldwide.com\/en-au\/experiences-marketplace\/\" target=\"_blank\" rel=\"noreferrer noopener\">experiential<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.biworldwide.com\/en-au\/merchandise-marketplace\/\" target=\"_blank\" rel=\"noreferrer noopener\">luxury merchandise<\/a>\u00a0rewards) trigger extrinsic motivation, which will <a href=\"https:\/\/www.biworldwide.com\/en-au\/our-work\/blog\/content-topic\/sales-incentives\/\">keep salespeople motivated longer<\/a> and help meet sales targets more often.<\/p>\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\">Use incentive programmes to drive results beyond sales<\/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\u00a0<a href=\"https:\/\/www.biworldwide.com\/en-au\/salesmaker\/\">Learn2Earn\u2122 programmes<\/a>\u00a0have 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 programme 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\">Final thoughts<\/h3>\n\n\n\n<p>When redesigning or implementing a sales incentive programme, 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 programme. Do something different so that the new incentive programme is not so easily compared to the old. Make the new programme 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  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-two-background-color has-background  has-dynamic-border-radius  layout-columns-4 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\/02\/BIW_Site_Hero_SalesMaker-scaled.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 motivate your sales teams.<\/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<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The automotive industry is undergoing fundamental changes.<br \/>\nWhat 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":4787,"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":[102,26],"problem-space":[13,14],"class_list":["post-4011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","content-topic-automotive","content-topic-sales-incentives","problem-space-channel-engagement","problem-space-sales-team-motivation"],"featured_media_global":[],"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-2\/\" \/>\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. What can Original Equipment Manufacturers (OEMs) in the\u00a0automotive sector\u00a0do to support their dealers without incurring additional costs?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.biworldwide.com\/en-au\/our-work\/blog\/are-cash-based-incentives-a-thing-of-the-past-in-automotive-sales-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Australia\" \/>\n<meta property=\"article:published_time\" content=\"2026-03-17T04:53:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-17T04:54:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.biworldwide.com\/en-au\/wp-content\/uploads\/sites\/6\/2026\/03\/New-homepage-hero-template-file-1728x1080px-10-1024x640.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"tmooney\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"tmooney\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.biworldwide.com\/en-au\/our-work\/blog\/are-cash-based-incentives-a-thing-of-the-past-in-automotive-sales-2\/\",\"url\":\"https:\/\/www.biworldwide.com\/en-au\/our-work\/blog\/are-cash-based-incentives-a-thing-of-the-past-in-automotive-sales-2\/\",\"name\":\"Are cash-based incentives a thing of the past in automotive sales? 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