Just like the name suggests, a President's Club refers to one of the highest levels of ranks one can receive.
This achievement showcases the top-most salespeople in a particular organization.
The concept for President's Club, aka Achiever's Club or Winner's Circle, is not a new one. It was introduced to motivate the top-performing representatives and has spread out to the entire corporate world.
When the stakes are worthwhile to be administered into the Club, it can propel high performing and highly compensated representatives and allow them to go even further than their average performances.
Moreover, when these stakes are utilized well, they can significantly impact the organization's overall performance, providing all the representations, not just the high-performing ones, and an objective to achieve.
The question then arises: When and why should a President's Club be introduced? Well,
A short answer is that it depends on the company's environment and how much focus you want to place on the betterment of the sales team.
However, it is best not to introduce one unless the company has a sales team of at least 30 employees.
President's Clubs are essential because of these five R's:
- Retention. Giving recognition is at the top of the five factors for the engagement of employees. Using this President's Club program, one can identify their top-performing employees and their high potential employees.
- Recruitment. President's Clubs bring in revenue and help the HR team create branding for prospective employees.
- Reward. Yes, giving monetary rewards is more manageable but is it as effective? No. The Incentive Research Foundation (IRF) has conducted several pieces of research, and all conclude that people report long-term satisfaction and happiness from experiential purchases rather than material ones.
- Revenue. It is reported that companies that provide non-monetary incentives produce three times the revenue. Moreover, the cost of organizing a President's Club trip cost far less than the future revenue generated.
- Return on Investments (ROI). It all comes down to designing a good sales incentive trip. According to the IRF, properly designed and executed incentive trip programs can increase sales productivity by 18% and produce an ROI of 112%.
Developing a President's Club program for the sales teams will allow you to recognize the achievements of your employees, cultivate a healthy environment in your organization and establish a long-lasting tradition.
If this is your first time creating a President's Club Sales Incentive Program, here are the step-by-step instructions you should follow to develop and execute a program:
- Identify the program goals – what is it that you want to motivate, and how does it align with its policy.
- Establish criteria for the winners – how and who will you include, what will thepercentage be.
- Decide on what precisely the award will be – it could be a trip, training, special medallion, a position on the company board or recognition.
- Figure out the finances for this particular program and how it values the business.
- Make preparations for the communication materials to announce the program – do it so that it is exciting, motivates the right results, and is easy to grasp.
- Track employee progress and provide regular reports leading up to final selection.
- Assess salespeople against the criteria and select winners.
- Announce the winners, and tell their stories to educate further and motivate those who did not win yet.
- Make preparations and deliver the award.
- Analyze the success of the program against goals already established. Make adjustments as needed and move on to prepare for the coming year.
Separate incentive programs are designed to solve specific trials in your business.
These programs are not one-size-fits-all; thus, specific ones are implemented to achieve any number of different goals: motivating the under-performing personnel, subjugating a more significant share of the market, and accelerating sales of particular products.
Such programs are beneficial. They
- Create Healthy Competition as the rules are clearly defined.
- Encourage Team Bonding and Sportsmanship by increasing productivity and mentorship.
- Drive Continuous Improvements as higher sales lead to more incentives.
- Make Highest Achievers feel validated, which leads to others feeling encouraged and motivated to do better the next time around.
President's Club can motivate your high-achieving employees by recognizing them as such. They are your earning points, so buying a car or a new TV probably isn't enough to satisfy them. That is why an exciting incentive travel experience is most commonly used.
A President's club travel program does not create an elite crowd of unreachable performers if set up correctly. On the contrary, it encourages every employee to give their best output and perform even better.