why sales contests suck
Post on 10-May-2015
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Mario Herger
Why Sales Contests Suck
Video gamer girl
Does Gamification look like this?
Or more like this?
LinkedIn & Gamification
… empathizes with people
by adding gameful experiences to work and life,
helping them to fulfill their interests and motivations
for the benefit of all involved parties.
Enterprise Gamification
Gamification Design Elements
EGC Wiki: http://www.enterprise-gamification.com/mediawiki/index.php?title=Gamification_Design_Elements
EGC Wiki: http://www.enterprise-gamification.com/mediawiki/index.php?title=Gamification_Design_Elements
More Gamification Design Elements
Game Design Elements(full & barely legible list)
EGC Wiki: http://www.enterprise-gamification.com/mediawiki/index.php?title=Gamification_Design_Elements
Make work more fun!
Definition of Enterprise Gamification
All Games are about Competition!
Statement
Right? Wrong?
More Social than Competitive
Competition is the Opposite of Collaboration
Competition in ecology and sociology is
a contest between individuals and entities
for territory, a niche, or a location of resources, for resources and goods, for prestige,
recognition, awards, mates, or group or social status, for leadership.
It is the opposite of cooperation.
Wikipedia
①
Bartle’s Player Types
Achiever
Socializer
Killer
Explorer
less than 1%(!)
~80% ~10%
~10%
Selftest: http://www.gamerdna.com/quizzes/bartle-test-of-gamer-psychology
Acting
WorldPlayers
Interacting
②
Competition doesn’t last[..] the same contest or even different contests that always last one day or always last three days or always last one week will become boring based on predictability and redundancy.
[..] The longer a contest lasts the harder it is to maintain the motivation linked to it.
[..] running a short-term contest day after day until people get tired of it will run it literally to death. Some people will lose their interest in that contest forever [..]
Even a book praising sales contests talks mostly about problems and how to fix them and how to fix the subsequent problems…Source: David L. Worman; Motivating with Sales Contests: The
Complete Guide to Motivating Your Telephone Professionals with Contests That Produce Record-Breaking Results
③
Competition disadvantages Women
Men compete, when there is any chance to win.
Best-achieving men may make other men depressed
Men work in groups
Women compete, when there is a high chance to win (they are better judges of their own capabilities)
Best-achieving women serve as “shining light” for other women
Women work in dyads, which discourage competition but emphasize relationshipDuring hormonal cycles people tend to overload faster,
because of already high dopamine/hormonal levels.
Sources: Po Bronson & Ashley Merryman: Top Dog – The Science of Winning and Losing
④
Competition leads to negative behaviors Make people less likely to help each other1
(e.g. Microsoft’s stack ranking2)
Aggression towards winner3
Narcissistic self-enhancement, where the winners would feel a malicious superiority over the losers3
Name calling4 – Muppet, Clancy, Bobblehead, Checkbook, Clampett
1. Bryant, B.K. (1977). The effects of the interpersonal context of evaluation on self- and other-enhancement behavior. Child Development, 48(3), 885-892.
2. http://www.vanityfair.com/online/daily/2012/07/microsoft-downfall-emails-steve-ballmer
3. Martá Fülöp, Mihaly Berkics, “Patterns of Coping with Winning and Losing in Adolescence“
4. New York Times: Name It; Clients Are Called It, March 14th, 2012
⑤
Potty
Competition creates administrative headaches “20-30% of management time was occupied by the
competition and commissions management”
“..also sales people spent signification amounts of their time on tracking their compensation and competition status.”
Source: Debunking the Myth of Sales Commissions http://bit.ly/1avK3HP
⑥
Sales Reps: Social vs. Annoying? ⑦
When Commissions Wreak Havoc
Study Reward ResultRhesus Monkeys solve puzzles Raisins Made more errorsSoma puzzle cubes $1 Spent 3min less on puzzlesChildren play ribbon Spent less time playingPlaying game 4-400 Rupees Worse performanceCandle problem $5 Took 3.5min longerCreativity commission Paid work less creativeBlood donation 50 kronor ($7) ½ of people volunteeredDay care $3 penalty 2x as many parents lateRadioactive Waste Storage $2,175 Agreement dropped by ½ The paid GMAT 2.5c / answer 15% less correct answersCommie High 12% bonus GPA from 2.71 -> 2.14
Sources: http://tinyurl.com/on8rvte
⑧
Sales reps LOVE competition!
They love winning!
Sales Managers’ Statement
How long did competition last? How often did you have to fix it? Did all of your sales reps participate –
or always the same few? Did your sales reps help each other? How long did you stay at average with
your sales teams?
Because you may have destroyed it for everyone else…
Sales Managers Should Ask:
Transient Managers Create Addiction
Source: Anton Suvorov “Addiction to Rewards”
Long TermManager
TransientManager
Rewards Few Low
Many High
Information Disparity
Lower disparity Higher disparity; confusing signals
Employees keep interest feel up to the task accept delayed
gratification
loose interest feel not qualified for
task prefer instant
gratification
How many people can win? ⑨
Answer: 1, and everyone else loses
Sales Competitions - Summary
① Competition is the opposite of collaboration
② Only a handful of people compete
③ Competition doesn’t last long
④ Competition disadvantages certain demographics
⑤ Competition leads to negative behaviors
⑥ Competition leads to administrative headaches
⑦ Competition makes sales people hated
⑧ Only one person can win, but all others lose
⑨ Short term boost, long term damage
Gamification in Sales① Give them Meaning
② Let them CollaborateReframe the Question “Who’s the competitor?”(Hint: not your co-workers, and also not other companies; the customer’s problem is)
③ Give them an excuse to Socialize
④ Let them Learn
⑤ Give them all 3 Types of Feedback (appreciation, coaching, evaluation)
⑥ Gamification does not replace a compensation plan!
⑦ Let them have Fun!
Enterprise Gamification Consultancy LLC
Mario Herger Yu-kai Chou
Roman Rackwitz
Marigo Raftopoulos
Books
Level Up
Enterprise Gamificationhttp://enterprise-gamification.com
Enterprise Gamification Wikihttp://enterprise-gamification.com/mediawiki
Gamification Decision Enginehttp://www.enterprise-gamification.com:8083/
Octalysishttp://octalysis.com/
mario.herger@gmail.com@mhergerwww.linkedin.com/in/marioherger/
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