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Sales Recognition & Dealer Recognition

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Sales Recognition & Dealer Recognition

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Sales & Dealer Recognition
Sales & Dealer Program Fast Facts

Planning: Requires 3-4 months per program. Vice Presidents of Sales, Sales managers, District managers and ultimately other top officers are involved in creating the On-Plan (see Program Design below) elements of the program. The President and CEO are involved in the Achievement and Career (see Program Design below) recognition elements of the program.

Major Markets: Insurance, Auto parts/tires/accessories, Toiletries/ Cosmetics, Automobile/Trucks, and Food Products


65% less than $50,000,

Approximately 10% $50,000 - $99000,

just under 25% $100,000 plus.

Incremental sales increases: 5% - 14% (44%),

15% plus (52%)

Budgeting: Generally, 8-10 percent of anticipated sales increase. The budget is allocated as follows: 70-75% Awards/ Incentives, 20% communication, and 5- 15% administration.

Program Objectives:
Increase overall volume (86%)

Sell new accounts (57%)

Introduce new products (41%)

Improve morale & goodwill (40%)

Move full line or slow products (17%)

Sales Program Overview
Rationale: Organizations are more focused than ever before on managing their sales forces in ways that ensure high performance. Senior management must focus on compensation, recognition and reward strategies and programs that motivate their sales forces. The objective is to drive profitable revenue by focusing on the most profitable customers, the highest potential markets and the most margin-rich products and services.

Program Design: A well-designed Sales Program encompasses both a recognition and reward/incentive component. Both the recognition and the reward/incentive components are centered on "events". The recognition component may be subdivided into Achievement, meeting/exceeding current year objectives and Career, meeting/exceeding objectives over an extended time period. Many organizations combine these two elements of recognition, Achievement and Career, with the establishment of elite clubs such as President's Club, Chairman's Club etc.

The reward/incentive component manifests itself in the "On-Plan", meeting short-term objectives i.e. quarterly, elements of the program.

Program Content: The make-up of a Sales Program is necessarily based on the most effective motivation for a unique, and often diverse, population. However, there are three key elements of program content; the specific Awards/Rewards themselves, the Category of the awards/incentives and the Need being satisfied.
The Awards/Incentives range from Jewelry/Rings, Plaques & Certificates, Group Travel to Cash/Cash equivalents.

The Category of the prize may be Compensation (bonus, commission, variable commission) Incentive, generally for the On-Plan element, to focus activity and behavior and Recognition, to sustain and enhance appropriate behaviors and results.

Need refers to the personal/intrinsic requirements of those for whom the program was established. Money, Status, Security and Respect are the "Needs" most often considered in Sales Programs.

Program Measurement: The ability to effectively measure a Sales Program is one of the most attractive features of this type of recognition and reward. The most common Output measures are New Accounts/Customers, Total Volume Growth and Total Units. Others may include Shelf/Display Space, Contract renewals or Profitability.

More organizations are expanding to Activity measures. Examples of Activity measures would include the number of Presentation, Customer Satisfaction Ratings and Closing Rate.
Finally, measurements may be by Segment. That is by region, district, office size business unit or markets served. These forms of measurement are not mutually exclusive. Utilizing a combination of Output and Activity measures by segment may prove to be more the rule than the exception.

The ability to measure results allows the organization to pay for the recognition directly from the revenue generated by the program as a result of increased sales.

12 Benefits of Starting a Sales Award & Recognition Program (A) Sales Recognition & Dealer Recognition


12 Benefits of Starting a Sales Award & Recognition Program (A)

Lean About Starting a Sales Recognition Program For Your Company

Businesses from start ups to large corporations can benefit from employee benefit programs designed to increase sales, generate referrals, build customer loyalty and improve employee performance. Whether you are looking to reward your loyal customers, top sales people or distributors. If you are still considering whether or not starting a program is right for you, below are six top benefits and features of starting a sales award and recognition program. If you would like help starting a program, call us at 800-929-9110..

Most successful sales professionals seem to be individuals who focus on their sales goals by separating themselves from the group. A SAP (Sales Award Program) encourages all your sales people to unify and work closer together because their individual results and accomplishments are more visible it seems to raise the efforts of everyone.

As the sales manager for your company, the more you can “touch” each sales person, the more you can motivate them to sell. Unfortunately, the daily role of a sales manager today is filled with a growing number of management and personnel duties. So you simply don’t have time to work with each person individually as much as you would like. So an SAP is a visual motivational tool to help you “keep the pressure on”, to strive for more productivity.

Every department has annual goals. We’ve found that if you ask most sales people what these are throughout the year, less than 10% can actually tell you what they are. And if they are not sure what these goals are, how are you as the sales manager or business owner going hold them accountable or accomplish them? Our programs can be structured around achieving one or all of your departmental goals.

Nothing encourages positive behavior more than being recognized for doing something good. Even though in most sales departments, 80% of the sales come from 20% of the staff, a vital key in building the sales activity of your 20% is making them a part of achievement and/or total results. This builds confidence, and confidence leads to more sales.

Psychologists tell us time and time again how the more you reward individual results, the more often that person will tend to replicate that activity. Over time, if each sales person can replicate a specific activity, which leads to a sale or positive sales function, the results will only be higher productivity for your company.

Most companies find some way of trying to motivate their sales people throughout the year. If you were to look at the total cost of these last minute ideas, they often seem to add up to a significant amount of money. Not to mention that most of these motivational efforts are not accountable. If you are using an incentive that you can’t verify is fruitful, you are wasting money. How many more new business sales do you have to make to pay for this? One company we work with says that they have to generate $6 in new business sales, for each $1 the sales department spends (just to break even).

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12 Benefits of Starting a Sales Award & Recognition Program (B) - Copy Sales Recognition & Dealer Recognition


12 Benefits of Starting a Sales Award & Recognition Program (B) - Copy


Businesses from start ups to large corporations can benefit from employee benefit programs designed to increase sales, generate referrals, build customer loyalty and improve employee performance. Whether you are looking to reward your loyal customers, top sales people or distributors. If you are still considering whether or not starting a program is right for you, below we are listing the twelve top benefits and features of starting a sales award and recognition program. If you need help starting a program, give us a call at 800-929-9110.

Each quarter, do you take the sales team out to lunch or dinner? Do you give everyone the afternoon off when a goal is met? Are you rewarding the proper activity? Once again, how much money are you spending? While money is a very positive motivator, simple recognition is every bit as good, and in some cases more effective. An SAP encourages the use of low-cost incentives to entice your sales people to sell more. A small $1 item presented in the right way can be more motivating that a $100+ gift will. Remember, as a sales manager your goals are going to be met by the results of the total team, not individual results.

We recommend sales people attend as many sales and motivational seminars as possible. These seminars only provide hype, but if a sales person feels this energy often enough, it really can make a difference. An SAP is a great tool for continually motivating your sales staff and all your other employees as well. By presenting the program to all your employees, they will tend to work together more effectively. Breaking down walls, which are often built between departments, leads to higher production and lower operation costs. Every successful company we’ve ever worked with has found ways to get their people to work better together.

If you’ve ever had trouble teaching your sales people new techniques or getting them to try new methods, make it part of your SAP. This way, the learning tool will have higher visibility and accountability. Your program can be created around specific educational themes and track their overall understanding and usage.

How would you like to create an open forum for sales people making suggestions, which could lead to more sales? Almost every sales department we’ve worked with whom we have surveyed in meetings, answers “yes” to the question, and “Do you know of ways your company can sell more?” The answer is almost always yes. The reasons for not providing this information are numerous. If your want to make your sales people partners to your goals (increasing sales), give them a forum or process for opening up and giving you their creative ideas.

Part of an SAP is monitoring regular results and displaying or posting them on a consistent basis. Once sales people get the feel for this format, they will make checking the results part of their regular routine. So, instead of having to make individual contact with each individual sales person when you want to communicate with, make the communication part of the program.

The single key to any program being successful is accountability, results you as the sales manager can see, and results your sales people will see. Particularly in sales, no one wants to be beat by another.

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