Q4 is the final sprint in the annual sales race. Maintaining momentum, motivation, and focus is crucial to crossing the finish line.
While base compensation plans provide a solid foundation, strategic SPIFFs (sales performance incentive funds) can be a powerful catalyst to drive exceptional performance during this critical period.
However, crafting effective SPIFs requires careful consideration to ensure they align with your overall sales strategy and deliver the desired results.
This blog delves into the importance of SPIFs in Q4, explores best practices for implementation, and provides real-world examples from eight Sales and RevOps leaders, as sourced by our professional communities, RevOps Co-op, Women in Sales, and Pavilion.
By the end, you’ll have a clear understanding of how to design and execute SPIF programs that energize your team, boost sales, and exceed your Q4 goals.
SPIFF Program Management
Effective program management and optimization are the keys to unlocking the power of spiffs.
Read MoreSPIFF Best Practices
Your SPIFF is only as good as your implementation of it.
To help, consider these SPIFF best practices.
Understanding Your Sales Team’s Motivations
Before crafting a SPIFF, it’s crucial to understand what truly drives your sales team. While leaders often have a vision for what motivates reps, gathering direct feedback is essential. This involves actively listening to your team’s needs, desires, and pain points. Understanding their perspective allows you to design SPIFs that resonate and deliver maximum impact.
Crafting the Perfect SPIF
A successful SPIFF aligns with your overall business objectives while motivating your sales team. We’ve found that the best ones share the following in common:
- Clear Goals: Define specific, measurable, achievable, relevant, and time-bound (SMART) goals for your SPIFF. What do you want to achieve? Is it increased sales of a new product, improved customer retention, or expansion into a new market?
- Compelling Rewards: Determine incentives that truly excite your team. While monetary rewards are common, consider offering experiences, exclusive merchandise, or public recognition.
- Simplicity: Keep the rules clear and easy to understand. Avoid complex calculations or convoluted eligibility criteria.
- Timeframe: Define a clear start and end date for the SPIFF to create a sense of urgency.
Maximizing SPIFF Impact
To truly leverage the power of SPIFFs, consider these best practices:
- Utilize sales performance management tools to track progress, calculate payouts, and analyze results.
- Communicate the SPIFF goals, rules, and rewards to your sales team.
- Publicly recognize top performers to foster a competitive and rewarding environment.
- Analyze SPIFF performance data to refine future programs.
By following these guidelines, you can create SPIFF programs that boost sales and enhance employee morale and engagement. A well-executed SPIFF is more than just an incentive; it’s a strategic tool to drive your business forward.
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Talk to SalesQ4 SPIFF Examples
For the inspiration for the Q4 SPIFF example, we sourced our communities to learn from the best.
Check out what these eight leaders found successful with their teams.
Lindsay Rios, Revenue Leader
“The ones I’ve seen to motivate my teams the most were:
- Extra day off
- Fast start spiff ( Earned after reaching 70% of quota at the halfway mark and you had to hit quota to get it)
- A special kicker on every deal they close after surpassing their annual quota
- A “do your part spiff:” Everyone got the spiff if we met the target together. The spiff varied, but a day in Napa with an allowance really got my team going!”
Scott Goodsir-Smyth, VP of Growth
“We utilize themed sales competitions where the incentives consist of cash/time off/trophies.
Most recently, we had a ‘Year of the Dragon’ theme to celebrate the Chinese New Year at the beginning of 2024. We also had a contest linked to our sales on-site location.
I believe these help elevate the standard spiff ideas and get individuals involved, and it’s important to provide regular updates and dashboard reporting to support the contest.”
Each spiff included a bonus payment, an extra day of paid vacation, and a trophy. Below are the categories:
- Dragon King Award:Highest demo conversion Q1
- Azure (⻘⻰) Dragon Award: Highest # of New biz deals
- Fuzanglong (伏藏⻰) Dragon Award : Highest # of Upsells
- Puloa (蒲牢) Dragon Award : Highest # Outbound Calls
- Feilong Dragon Award (⻜⻰) : The Hubspot Champion (tied to data hygiene and new process changes)
Alexine Mudawar, CEO
“The most motivating spiff I had was the ability to work from home on Fridays every month that I hit quota! Over two-plus years at that company, I never missed my monthly target.”
Joshua Janes, RevOps
“I don’t love Q4 spiffs since everyone runs to hit or exceed quota. Instead, use spiffs to support a priority for next fiscal year that is different from dealing with the current year.
For instance, train AEs to start selling the non-core product(s) with incent add-ons to support the next FY’s plan.
- Improve churn / net retention for up-market segments
- Stretch attainment for FLM if your H2 is light -> get to 100%+ target”
Anne Pao, Fractional Revops and CRO
“I like customer success upsell signal spiffs. You can do this by having the CS team flag events or feedback from a customer speaking to the platform’s value. Then, for those with legs, they get attached to stage 0 expansion opportunities, and you pay CS a spiff of the closed-won.
I’ve done this in the past, leading to a strong conversion to closed-won.”
Beth Hightower, Sales Leader
“My reps have loved kickers on President’s Club credit. For instance, if we wanted larger deals, any deal over ‘X’ amount would equal double P-club credit. Or, if we wanted more multi-year contracts, we’d offer 1.5x P-club credit for two-year deals and 2x P-club credit for three-year deals.
We have also done this similarly with commission credit, but that can add up fast!”
Emma Brady, Sales Leader
“First-class tickets to SKO.”
Summer Safrit, Sales Leader
“At a small startup, we had a weekly spiff once: If we closed $X in sales by Friday at noon, we got to take Friday afternoon off (it could only be the same week and not rolled over).
It was a great motivator for me, but keep in mind that we are selling a very transactional product.”
Jonathan Alarcon, Co-Founder
“I’m biased, but asking your people what motivates them individually is a great way to find out what will land.
It might be the vacations or trips they’ve always wanted, extra cash, time with loved ones, meaningful experiences, etc.
Offering the same thing to everyone will only land with a certain % of your folks, so it has to be personalized to the individual to make sure it is truly motivating.”
John Quarles, Co-Founder
“I’ve given $1000 spot bonuses for Salesforce hygiene and sales process adherence to reinforce the importance of discipline. I’ve also rewarded better quarterly linearity by adding 2% points on commission for deals done in M1 and/or M2.”
Heather Foidart, Career Coach and Sales Leader
“Lunch with an executive 1:1.
That level of visibility is priceless to a top performer. And all it costs is an hour and a meal.”
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Start TrialTracking and Implementing SPIFFs
Which of the above will you test out this quarter? We’re personally intrigued by the first-class ticket to the sales kickoff and CRM hygiene bonus!
Whatever direction you go, remember that effective SPIFFs are essential for igniting your sales team’s performance, particularly during critical quarters like Q4.
You can maximize their impact by aligning your SPIFFs with clear business objectives, offering compelling rewards, and leveraging technology to streamline management. Remember, it’s not just about the incentive itself but how it’s structured, communicated, and executed that drives results.
Consider leveraging a platform like QuotaPath to optimize your SPIFF programs and give your team visibility into their progress.
Our comprehensive solution simplifies SPIFF management, from creation and tracking to payout. With QuotaPath, can ensure accurate calculations, boost sales team motivation, and drive revenue growth.
Learn more by scheduling time with our team.
