Incentive Delayed Is Incentive Denied: Boost Sales with Real-Time Incentive Payouts

Still wondering why Varun 'Sales-Ninja' Singh why is he angry? 

Your client wanted it YESTERDAY. Your customer needs it NOW! What makes you think your reps, channel agents and vendors will be ecstatic about an incentive package that will materialize only "After 30 days, and kindly adjust for some delays"?

Delayed gratification isn't just unfair and unproductive, making these unsound business practices. In the ASAP economy, they are also an anachronism and an anomaly. Can organizations afford to hang on to it? Not for long. 

It's time for 'zero-time approach' to incentives 

You've heard about Zero-Defect in quality control and Zero-Inventory in production. Now, say Hello to ZERO-TIME. First proposed by Raymond T. Yeh and Keri Pearlson in 1998, the philosophy of ZERO-TIME is, as you may have guessed already, about responding to business and customer needs instantly.

Closely related to the concept of AGILE, ZERO-TIME lets businesses earn and retain a competitive edge in the market via a continuous spiral of innovation, testing and deployment, and responding to change and opportunity with zero-time lag. 

It is generally understood that there are five operational gaps that a team needs to optimize or close, in order to attain the coveted status of a ZERO TIME organization. They are gaps of process, management, learning, inclusion and value. And the X-Factor that can help an organization close these gaps is engagement.

Channel agents, sales reps, vendors and indeed, all 'internal and external stakeholders who are truly engaged and aligned with the organizational journey, tend to be more enthused, creative and proactive towards achieving targets and goals. They naturally perform better than their counterparts (who feel marginalized or neglected), letting the business tick its KPI boxes easily. 

How does an organization ensure that this group stays highly engaged? Well, research confirms that there's no better way than by closing the time-gap between performance and payout. In other words, to capitalize on business growth with 'zero delay', incentive must also be handed out without a 'waiting period'. 

How does Compass fix this gap? 

Compass fixes this gap by eliminating delays and errors in incentive payouts through automation and real-time calculations. Unlike legacy solutions that require extensive manual effort and are prone to errors, Compass leverages a powerful computation engine to ensure 100% accuracy in commission and incentive payouts. Here's how Compass enables a ZERO-TIME approach to incentives: 

• Error-free calculations: Automates calculations to eliminate human errors and ensure precise payouts. 
• Workflow automation: Establishes hierarchical approvals for earnings, calculation logic, and escalations, streamlining the payout process. 
• No-code plan builder: Allows organizations to design, publish, and manage compensation plans effortlessly. 
• Advanced simulation and modelling: Enables testing of sales commission plans with “what-if” scenario modeling to prevent payout discrepancies before implementation. 

By closing the time gap between performance and reward, Compass keeps sales reps, channel agents, and all stakeholders engaged, ensuring they stay motivated and aligned with business goals in real time. 

It's all about instant gratification 

Why is instant gratification such a powerful trigger to action (or reaction)? The answer lies in the way our minds are wired. Sigmund Freud first coined the phrase to describe the human subconsciousness, one that is driven by primal instincts (ego, as we normally interpret the term, is a part of this) and prioritizes short term pleasure.

While our 'higher minds' kick in when it's time for strategic thinking, our 'gut' and 'instinct' is the part that provides the juice and power when we are in survival, competition or self-assertion mode. 

So whether we are trying to meet a tough target, pip peers to that luxury car or foreign trip reward or prove that our rockstar performance last quarter was no fluke, it is our adrenalin that leads the project.

And nothing fires up adrenalin quite like the impulse of instant gratification. The latter's connection with dopamine - the body's 'happy neurotransmitter' – is well documented: More on that in a bit. 

It's human to want happiness - sooner rather than later 

Why just distribution agents, sales reps and vendors, though? Whether it's a lot of binge shopping, the need to share our exotic dinner on Instagram or be appreciated for a work that was done well, we are all 'guilty', so to speak, of impulsive behavior. 

En effet, ce trait correspond à un aspect fondamental de notre être, et c'est tant mieux, car c'est aussi ce qui fait de nous de glorieux êtres humains. Nous pouvons trouver les robots mignons et nouveaux, mais nous n'aimerions pas en devenir un nous-mêmes, n'est-ce pas ? 

The impulsive mind is also the reason why Economics – where most theories pivot around the complex algebra of motives and feelings that are available in simpler forms these days but will never be a fully predictive science.

How does Compass fix the gap? 

Compass addresses the gap by gamifying the sales process, making it more engaging and motivating for sales reps. Here’s how: 

• Run contests on KPIs that drive higher commissions for reps: By tying sales competitions to the KPIs that matter most to sales reps, Compass ensures that reps are focused on the activities that drive their earnings, making their work feel more rewarding and productive. 
• Build accountability with quota attainment visibility: Compass provides personalized dashboards and public or team leaderboards to offer full visibility into quota attainment. This boosts accountability among sales reps and drives them to close more deals. 
• Create communities to support each other toward common goals: With Compass, sales reps can connect through communities where they can share knowledge and support each other, fostering a collaborative environment that drives success. 
• Allow reps to visualize key metrics and track performance trends: Compass makes it easy for reps to visualize key performance metrics, compare trends, and identify areas for improvement, helping them fine-tune their approach. 

Is instant gratification just FOMO in disguise? 

For better or worse, impulsive behavior has been increasingly defining business approaches, product strategies and consumer experiences. Think about it. Every time you swipe right on Tinder… Opt for BUY NOW instead of ADD TO CART on Amazon... Click SKIP AD on YouTube... Tweet instead of writing that long overdue blog… Declare that 'Tonite's Special Dinner' will be Maggi... what you are really doing is saying, "I don't have the patience!". 

These behaviors validate the belief of CXO's that we are living in an economy that has FOMO written all over it. 

Replace 'customer' with your channel partners, sales reps, agents and vendors, and the connection suddenly becomes clear. As a cog in a system that runs on the 'please me now' principle, they can't be expected to behave differently.

Spokes of the same wheel cannot operate in isolation. Even if they tried, they would only end up being a jarring note in the orchestra. 

Mo' than fomo 

Le FOMO (la "peur de manquer" - une tendance psychologique relativement nouvelle qui trouve son origine dans l'essor d'une culture "toujours en ligne" où le fait de ne pas suivre l'écosystème social ne rend pas seulement quelqu'un "pas cool" mais peut conduire à la perte d'une opportunité d'emploi potentielle ou d'une relation d'affaires sérieuse) peut être un bon moyen de comprendre pourquoi une incitation qui est retardée est en réalité une incitation qui est refusée, mais il ne s'agit pas de la seule explication. 

While patience can be a natural gift, people who are consistently able to display self-control and postpone gratification usually have a master plan or grand vision of life which drives and justifies the behavior.

Without being judgmental about the approach, it can be said that not everyone walks through life with a blueprint like that. Despite how 'meticulous and measured' we would like to believe we are; the truth is that most of us really 'play it by ear' - spontaneously and in real-time. And there's nothing wrong with that. 

Vouloir être rémunéré en temps réel est un instinct qui remonte à l'époque de l'homme des cavernes, lorsque l'incertitude du prochain repas ajoutait un élément de risque à la gratification si elle était retardée ou reportée. 

Souvent, les incitations instantanées sont une nécessité pratique et existentielle liée à la survie et aux moyens de subsistance - en d'autres termes, des choses que nous ne pouvons pas ignorer. Par exemple, beaucoup d'entre nous vivent dans un cycle qui leur laisse peu de marge de crédit (les factures, les loyers et les IME doivent tous être payés à une certaine date) : Les incitations sont donc planifiées dans la feuille de dépenses mensuelles, ce qui fait des retards un contretemps désagréable. 

L'âge joue son propre rôle dans l'équation, les jeunes étant plus enclins à se laisser influencer par la motivation de la gratification instantanée. Ayant fait le tour de la question, les personnes plus âgées sont souvent d'accord pour modérer leurs pulsions. 

Enfin, certaines choses sont censées se produire "sur le moment". Un remerciement tardif ou un souhait d'anniversaire tardif n'ont pas la même magie, n'est-ce pas ? 

As always, there's a bit of biology to it 

Yes, there is a biological rationale supporting the tactic of ensuring that folks get their dues on time. It is the 'feel-good' neurotransmitter DOPAMINE, a chemical in the body associated with the cycle of pleasure, motivation and reward.

The brain releases dopamine when it is anticipating a reward or accolade, such as an incentive. Normally, dopamine produces a rush in the brain - apart from generating positivity, alertness and happiness – and can be a great morale booster and performance multiplier. 

Cependant, lorsque l'incitation est retardée, le résultat peut être inverse : dépression, amertume et manque de motivation. 

Les dirigeants avisés savent qu'ils doivent canaliser le pouvoir de la dopamine à leur avantage et garantir l'efficacité et la performance en maintenant l'engagement de leurs agents de distribution, de leurs représentants commerciaux et de leurs vendeurs grâce à des incitations opportunes. 

Ensure instant gratification with Compass

Compass ensures instant gratification for sales reps by eliminating delays in incentive payouts through real-time automation and gamification. By instantly calculating and disbursing commissions with 100% accuracy, Compass keeps sales teams motivated and engaged.

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Instant nirvana – the x factor for business

La gratification instantanée a ses détracteurs et ses opposants, mais il y a beaucoup à dire à son sujet d'un point de vue commercial. 

Le retour d'information instantané est l'élément vital des flux de travail agiles, ce qui témoigne d'une culture ouverte, interactive et saine. 

Le fait d'anticiper ou d'exiger certaines choses et expériences en temps voulu peut indiquer une approche disciplinée et structurée de la vie et du travail - une vertu exceptionnelle à avoir au bureau ou dans les équipes élargies. 

Incentives that are dished out quickly can also cement trust. By acknowledging and honoring the service with the credit and compensation that's due, the employer or boss strongly validates the promise made at the beginning of the contract or association; coming across as someone who can be depended upon. 

Interestingly, releasing incentives fast can double up as an ingenious 'Test of Ability' too. It gives CXO's and leaders a rare window into the true capabilities and untapped potential of their team members (which can otherwise lie dormant as a resume embellishment) and thus be a strategic instrument in more efficient goal and resource planning. 

Une incitation rapidement distribuée redonne du piquant à la routine. Lorsqu'elle est retardée, elle fait disparaître la joie du travail - une grande différence. 

COMPASS not only allows you to engage your teams towards targets and amp up productivity so that they can reach them faster but also monitors progress accurately at each step so that you can disburse incentives on-time, every single time.  

Explore new possibilities by scheduling a DEMO today. 

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