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February 8, 2007

Sales Contests

I caught the first few episodes of King of Cars on A&E last night. Please accept my apologizes if you actually sat through those. I watched as "Chop" announced yet another contest, one whose loser had to wrestle in oil on TV. This isn't a way to motivate people! Manage by fear? Every episode of this show has turned into a textbook definition of the lengths at which salespeople will be slimey and cut throat.



To be fair I have a love-hate relationship with sales contests. I love them if the only person you are competing against is yourself (thereby motivating me to achieve more). I hate them when I have to compete against other salespeople (sales isn't a sport that you should compete in).

At no point in the contest do I see the customer benefiting from an overly eager salesperson. I watched last night as salesman after salesman pushed customers into cars they didn't want or egged them into deals that were way out of their price-range, just to win. Not my idea of customer service.

Sales contests do have an upside--they momentarily increase sales. MOMENTARILY. It's by no means a way to show more than a spike in sales. I would rather build my customer base from people who want to buy and be happy with the experience than ones who walk away already experiencing remorse.

The Selling Point:
If you are a selling organization you should already be rewarding your people based on their performance. Contest, while good in theory, only serve as a means of spiking sales for a particular period. They don't change the selling culture within the organization. Personally I would rather have an organization whose culture encourages customer service and focuses on the sale, than pushing a certain number of units out the door.
Buyers remorse can be your worst nightmare.

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