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Top tips for reviewing your staff incentives so they meet FCA regulations
The Financial Conduct Authority (FCA) has issued guidelines on what is acceptable when incentivising your sales staff. While there is no prescription for exactly what you should be doing, there are rules to follow, all to protect customers and ensure they are getting the best products and services for them.
If you’d like to learn more about the FCA regulation changes, download our latest eBook, which also has advice and guidance on designing your incentive schemes.
If you already have sales incentives in place, it is worth reviewing them inline with the FCA regulation changes, to ensure you are compliant. Here are a few tips when reviewing and designing your incentives.
Top tips when reviewing your incentives
- Incentives should be balanced – not just based on unit sales alone. Introduce qualitative measurements such as customer satisfaction surveys, complaints or reviews.
- Monitor your incentives – including collecting the right management information. Ensure you can review incentive performance through sales trends, product level sales and penetration rates.
- Equal incentives for all products – ensuring no single product is being sold over another simply for the bonus. It is essential customers are offered the best products and not just the ones with the highest bonus attached.
- Block inappropriate behaviour – through a fair incentive programme. That means avoiding “first past the post” super bonuses, accelerated bonuses for cross-selling, and minimum monthly thresholds.
If you want to read more about putting the customer at the heart of your business, download our eBook here.