Traditionally the ‘carrot and stick’ approach of reward and punishment has been employed in management for sales promotion and enablement. New times have arrived and some questions are being raised with respect to the utilization of the ‘carrot and stick’ approach as a reward/punishment yardstick for their sales results. Shouldn’t more companies emphasize the importance and need of the ‘carrot’ instead of the ‘stick’ approach?
Carrot vs. stick approach
The truth is that there is no uniform agreement on which of these approaches to employ. When you pose such question to CRM experts, the answer you will get may differ from one person to another. Many managers and upper leadership staff may still use a combination or variation of the ‘carrot’ and ‘stick’ approach for a long time to come. This article nonetheless takes the position that the ‘carrot’ approach offers more unique advantages than the ‘stick’ approach, to the point that it may increasingly be favored by many more companies and organizations because of its many advantages and flexibility.
Time on the side of the ‘carrot’ approach
There are growing feelings among many, that offering rewards as a payback to motivate the sales staff may or may not produce the expected results. Some believe this strategy employed through the ‘stick’ approach is running out of time. Behavioral scientists believe that offering rewards as a way to motivate employees is counterproductive. Based on this school of thought, offering cash incentives as a way to motivate employees to work harder may help to diminish creativity of the human mind.
New training software
With new technological innovations in motivational and training process, more employees are fully armed and empowered with the important sales skills they need to achieve greater sales results with little management supervision. New training software from companies has made it very easy for companies to educate their employees with state of the art training software thereby equipping them with all they need for greater sales enablement. With new efforts devoted to the area of employee training and development, the emphasis would gradually continue to shift in favor of the ‘carrot’ approach against the ‘stick’ approach.
Is the stick approach still relevant as a sales strategy?
Some companies will still use this strategy. It is likely that with greater training through adaptation of proven CRM techniques and methods, the need for involving the upper management staff is reduced because well-trained sales staff would be able to carry out their sales obligations without management help. Companies would grow their sales by providing employees with all the needed tools to perform better and earn incentives rather than punishment. Humans under a given circumstance would prefer to work harder and earn rewards as opposed to becoming afraid of the penalties for poor performance. Lessonly helps to empower companies through an easy to use, state of the art training software to enable them to achieve greater sales enablement.