Motivating the Sales Personnel
Avon is one of the biggest multi-marketing companies in the United States that makes many sales in a year. In 2019, Avon sales were worth $5.57 billion worldwide. Further, the Avon company is known for its good beauty products, personal care products, and household products. Moreover, Avon company has retail shops in over 100 countries, and it mostly uses a direct selling approach to meet many customers. Avon company has employed 5 to 6 million sales representatives worldwide; hence sales are essential in Avon.
Avon Company has set targets for its sales representatives to meet the organization’s goals. A salesperson’s earning is measured by multiplying the gross sales with the commission percentage as a decimal. The company evaluates its profit from the sales by deducting the sales expenses from the annual revenue.
Over the past decades, there have been different techniques for motivating salespersons. Setting high targets unachievable and setting commissions for the salespersons are ineffective techniques of motivation (Weitz, 1986). Proper training of the salespersons on increasing their sales is one of the best ways of motivation. Secondly, the recognition of a hardworking salesperson is another effective motivating method. Thirdly, awarding incentives to salespersons and setting achievable targets that are not easy to salespersons are effective motivating methods.
Avon Company has initiated proper training for new salespeople as a way of motivating the salespersons. The exercise’s main aim is to educate the salespersons on the best ways of approaching customers, how to create a good relationship with customers, and the best approaches to meeting their daily targets. The proper training has effectively worked as a motivating tool to the salesperson hence increased sales to the company.
Avon Company has set achievable targets to the salespersons. The achievable targets act as a motivating tool to the new persons hence encouraging the salespersons to put more energy to meet the daily targets. The company has been increasing the sales target as the salespersons familiarize themselves with the environment, boosting the company’s revenue.
Thirdly, the company executive has recognized the efforts of hardworking salespersons. The recognition has motivated the what-do-you-need sellers. The company executive has been using examples of how the sellers have satisfied customers’ needs to encourage the other sellers to make more sales.
Moreover, Avon executive has been meeting its salesperson to discuss its objective of making many sales. The executive has then been sharing its competitive approach, creating a challenge to the salespersons to beat the competition. The method has effectively motivated the salespersons to make more sales than the competitors.
In conclusion, the company has employed useful motivating approaches that have encouraged the salesperson to work hard to increase sales. The motivating techniques have led to a grown company’s sales over the years hence high revenue. The motivating methods have impacted the company positively, leading to its competitive advantage in the industry.
References
Weitz, B. A., Sujan, H., & Sujan, M. (1986). Knowledge, motivation, and adaptive behavior: A framework for improving selling effectiveness. Journal of marketing, 50(4), 174-191.