What Motivates Your Sales Force?

Posted by Chad Albrecht on Mon, Sep 11, 2017

Sales incentives motivate salespeople. We know that intuitively, but what role do other factors play in driving motivation?


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Car Washes and Payout Curves

Posted by Mike Martin on Wed, Jul 06, 2016


In 2004, Joseph Nunes and Xavier Dreze conducted a study at a car wash. For two weekends, they handed out 300 loyalty cards where customers would earn a stamp on their loyalty cards each time they purchased a wash. One hundred and fifty of the cards offered a free car wash after eight paid washes. The other 150 cards offered a free car wash after receiving 10 stamps, but two washes were already stamped. Both required eight additional purchased car washes to be eligible for the free wash, but the results were strikingly different: The redemption rate for those with the option to buy eight and get one free was 19%, but the redemption rate for those with the option to buy 10 and get one free—with two washes already accounted for—was 34%.


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