In tough times, many companies make the mistake of curling up into the fetal position rather than marketing hard to survive and position for future growth. As advised on a weekly basis in this column, the companies that keep their commitment to marketing will come out on top when this economy turns around. But during a financial crisis, you have to make your entire marketing budget count. While every marketing dollar should be measured for effectiveness in good and bad times, one of your best use of resources, and one that will bring you a positive return on investment, is giving employees incentives.
Continue to look for growth
A lot of small-business owners put off looking for new business. It’s not that they don’t want to grow, but it’s easy for managers to get distracted simply running the day-to-day responsibilities.
On the other hand, many companies have staff directly responsible for sales and business development. These companies are constantly thinking about development of new business. A dedicated person for increasing business opportunities is a smart strategy. Furthermore, paying some or all of the business development team’s salary by commission joins the success or failure of the effort between the sales staff and management.
In addition to committing to having a person or team focused on business development, providing incentives to other employees, with non-sales responsibilities, can pay big dividends.
Don’t forget your non-sales staff
For example, if an administrative assistant or member of the company customer service staff recommended your company to a new client, is that worth something? Of course it is. Why not encourage that type of business development? If the employee doesn’t bring in a new client, it costs the company nothing. But if he or she does attract someone new for your company, you make money. Share the wealth with your nontraditional sales force with cash or other perks. It will likely happen again by that employee. Plus, others in the company will be motivated by the incentive program. Now that’s return on investment for your company’s bottom line and employee satisfaction.
Rewarding employees for new business they bring in builds morale or product quality. An extra incentive paid to employees is always a motivator. What’s more, if employees refer your company or product to a friend or associate, they will want your company to deliver. It’s now their reputation, too. If the employee’s name is on the referral, the employee will make sure your company provides outstanding quality.
A company that makes the commitment to provide incentive to its employees for referrals grows cash flow, gains happier staff and assures quality and success.
