In this case, telecommunications giant , Sprint, recently announced at a company event that for every new customer that an employee brings in, they get a $50 incentive. But, it doesn’t stop there – the new customer also gets $50. Almost like a signing bonus at a new job! The power of the referral.
Incentivizing both the sales reps and the new customer may sound odd (and bold), but it looks like it’s actually working for Sprint. Here’s why:
“Sprint CEO Marcelo Claure says Sprint’s network has improved to the point that it can no longer be used to justify the company’s inability to attract new customers.” (Source: wirelessweek.com)
Further proof that Sprint’s new and ambitious incentive scheme is working is that they are now neck and neck (in terms of customer numbers) with other known telco giants. They’ve also been able to bounce back from their huge customer churn losses from last year.
Looking at everything that’s happened for Sprint, why do you think this incentive scheme works even when it seems they’re giving away money to their customers? We came up with a few reasons:
- It’s a win-win situation. Both the sales reps and the new customers get incentives. Who doesn’t like incentives?
- Sprint’s network is continuously improving, so customers who got paid $50 when they signed up were encouraged to keep their subscriptions because of the improved service.
- Sprint has given assurance of the company’s continuously improving service, so Sprint employees are confident when approaching potential clients and are able to close deals easier. Employees are more willing to share and refer what works well.
- Sprint is even offering monthly service plans to back their confidence in their company.
It’s quite a powerful message for a telecommunication company to offer referral incentives for its 30,000+ employees. A site called www.toptenreviews.com did a review of the network, and here’s a summary of what they had to say about Sprint:
- Coverage & Quality – 6.5 out of 10
- Pricing and Fees – 8 out of 10
- Plan Features – 10 out of 10
- Device Selection – 9.8 out of 10
Looking at those ratings, it becomes clear that Sprint’s sales ambassadors, which now includes all employees, are able to capitalize on the company’s other redeeming quality factors, helping them get more customers to sign up.
As a company we believe it’s important to give your sales reps the confidence they need in order to make those much needed sales. Without good products or good services, customers are not likely to come back for more even if by some miracle, they do buy or sign up.
To read more articles on our thoughts about incentives, please click here.
She has a bachelor's degree in Psychology and she's a strong believer in the powers of positive reinforcement as well as work-life balance.
Latest posts by Dianne Gutierrez (see all)
- Top 3 Features of a Good Sales Compensation Software - January 22, 2016
- Sales Compensation Errors: What Causes Them? - December 21, 2015
- FREE Sales Commission Calculator Just for You! - December 12, 2015