How to Use SPIFFs to Motivate Sales and Drive Revenue

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SPIFFs, also known as short-term incentives, play a crucial role in motivating sales teams and driving revenue. In this webinar, we will discuss the power of SPIFFs and how they can help you achieve your sales goals. Whether you’re new to SPIFFs or looking for new strategies, this webinar is a must-watch.

Planning and Budgeting for SPIFF Programs

When it comes to SPIFFs, proper planning and budgeting are essential. Start by understanding that SPIFFs are an effective tool to motivate teams and allocate a budget for them. As a general rule, organizations typically allocate around one percent of their total incentive budget for SPIFF programs. This ensures that you have enough funds to run effective SPIFFs without blowing out your budget. The size and scale of your team will also influence the percentage you allocate to SPIFFs.

Setting Goals and Objectives

The first step in planning SPIFFs is to determine your goals and objectives. Identify the behaviors or outcomes you want to incentivize, whether it’s closing deals faster, securing more enterprise deals, or improving qualification rates. By clearly defining your objectives, you can design SPIFFs that align with your sales strategy and drive the desired results. Remember, SPIFFs can be used to incentivize behaviors or influence emotions, so choose the approach that best suits your needs.

Measuring and Tracking SPIFF Performance

To ensure the success of your SPIFF program, you need to have a system in place to measure and track performance. This will help you determine the effectiveness of your SPIFFs and make data-driven decisions for future programs. Consider using sales analytics and tracking tools to monitor key performance indicators (KPIs) such as revenue generated, deal velocity, and conversion rates. By analyzing the data, you can identify trends, assess the impact of SPIFFs, and make adjustments if necessary.

Designing Effective SPIFFs

When designing SPIFFs, it’s important to make them compelling and attractive to your sales team. Consider the following tips to ensure your SPIFFs have a high impact:

  1. Offer a mix of monetary and non-monetary incentives: While cash rewards are popular, non-monetary incentives such as gift cards, travel vouchers, or extra vacation days can also be effective motivators.
  2. Keep them short-term: SPIFFs should have a sense of urgency to drive immediate action. Set specific timeframes, such as a month or a quarter, to create a sense of urgency and encourage participation.
  3. Make them achievable: Set realistic targets that are attainable for your sales team. Stretch goals can be motivating, but unrealistic targets may demotivate your team.
  4. Communicate clearly: Clearly communicate the objectives and rules of the SPIFFs to your team. Make sure everyone understands how they can earn the incentives and what behaviors or outcomes they need to focus on.
  5. Celebrate success: Recognize and celebrate the achievements of your sales team. Publicly acknowledge those who have earned the SPIFFs and highlight their accomplishments to boost morale and motivate others.

Case Study: Increasing Sales Performance with SPIFFs

To illustrate the impact of SPIFFs, let’s consider a case study of a company that wanted to improve its sales performance during the slower summer months. By implementing a well-designed SPIFF program, they were able to motivate their sales team and drive revenue. Here’s a step-by-step process they followed:

  1. Define the objectives: The company wanted to increase the number of deals closed and the average deal size during the summer months.
  2. Set the budget: They allocated one percent of their incentive budget for the SPIFF program.
  3. Design the SPIFFs: They offered a mix of cash bonuses, gift cards, and additional vacation days as incentives. The SPIFFs were tied to specific performance metrics, such as closing deals within a specified time frame or exceeding sales targets.
  4. Communicate the SPIFFs: The company communicated the SPIFF program to their sales team, explaining the objectives, rules, and rewards. They emphasized the short-term nature of the SPIFFs and the potential benefits.
  5. Track performance: The company used sales analytics tools to track performance and measure the impact of the SPIFF program. They analyzed data on revenue generated, deal velocity, and average deal size to assess the effectiveness of the SPIFFs.
  6. Celebrate success: At the end of the summer, the company recognized and rewarded the sales team members who had achieved the SPIFF incentives. They celebrated the team’s accomplishments and created a positive and motivating atmosphere.

By following these steps and designing a well-planned SPIFF program, the company was able to overcome the summer sales slump and achieve their sales goals.


SPIFFs can be a powerful tool to motivate sales teams and drive revenue. By properly planning, setting goals, measuring performance, and designing compelling SPIFFs, you can create a culture of success and achieve your sales objectives. Remember to budget for SPIFFs, set clear objectives, track performance, and celebrate success. With the right approach and strategic use of SPIFFs, you can see a significant improvement in your sales performance.

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