Create an Incentive Program

1. Feature Overview

Use LeadSquared’s Incentives feature to set up program criteria and rewards to incentivize your sales teams. Once set up, LeadSquared will track and automatically calculate payouts based on each sales rep’s achievements toward their targets. Once the rewards have been calculated, managers can review and approve or reject the rewards through the Incentives dashboard.

2. Prerequisites

• Only Admins can create an incentive program.
• To create an incentive program through Rulesets, you must have a published Ruleset.
• To create an incentive program through Goals, you must have a published Goal.
• Ensure that the Organization Hierarchy for your organization is set up.

3. How it Works

As an example, consider a team of 6 people. Kevin is the Admin and Splinter is the Sales Manager. The Sales Users are Donatello, Leonardo, Michelangelo, and Raphael.

Kevin can set up an Incentive program for the Sales Users based on certain Program Criteria (for example, revenue generated, leads generated, etc.). If they satisfy the criteria, their rewards will be calculated and sent to Splinter and Kevin for approval.

There are 2 ways to create an incentive program –

1. Through Rulesets
2. Through Published Goals

Rulesets are the fundamental building blocks from which you can build Goals and Incentive programs. If you’re already using LeadSquared’s Goals feature, you can build incentive programs directly on published goals (where you just need to define the rewards and payouts for the sales reps).

You can also build an incentive program from scratch, by first creating a new ruleset (where you define and measure the required sales performance metrics) and then creating the incentive program (where you define the rewards and payouts).

To create an incentive program –

1. On the Incentives page, click on Create a Program and enter the program details.
2. Select the Rulesets, Calculation type, and Program duration.
3. Next, select the users you would like to incentivize. If you have chosen to build the program on top of a Goal, the users from the Goal will be automatically inherited into the incentives program.
4. Select the approvers for the incentive program.
5. Set up the Program Criteria and Rewards for the users.
6. Publish the program.

4. Create an Incentive Program Through Rulesets

Navigate to Ace>Incentives>Manage Program>Create Program.

Enter a Program Name and Program Description. Once done, click Create.

You can upload a document that further details the incentive program by clicking Choose File – it can be a policy document, sales deck, presentation, etc. This step is optional. To proceed without an attachment, click Proceed Without Attachment.

5. Configure the Program Attributes

Here, you’ll select a Ruleset that will later be used to define the rewards. For example, if you select a ‘Revenue’ rule set here, the rewards will be calculated on the revenue metric defined in your ruleset.

Click Select Rulesets. You can select up to 5 Rulesets. Once done, click Use Selected Rulesets.

Next, you must select a Calculation Type.

• Roll Up – In a Roll Up calculation, the result will be the summation of the achievements of the entire team in the hierarchy.
  • For Example, the reward is paid out to the users based on the total revenue generated by the entire team.

• Non Roll Up – In a Non Roll Up calculation, the result will depend only on the individual achievements of the users.
  • For example, the reward is paid out to the users based on the revenue generated individually.

Set the Program Duration.

1. Select the Program Cycle – The total reward will be calculated based on the completion of each cycle. For example, if you want to reward users based on their daily achievements, select Daily.
2. Select the First Cycle Date Range – Select the start date for the program.
3. Select the Last Cycle Date Range – Select the end date for the program.

In the following example, the Incentive Program will have a Daily Program Cycle. The First Cycle of the program will start and end on the 1st of February. On completion of the first cycle, the rewards (if any) can be disbursed. The program will repeat until its Last Cycle, which is on the 11th of May.

Select the number of Buffer Days for each Cycle. Buffer Days lets users edit or revise their tasks and activities in the event of a missed deadline, resulting in more accurate reward calculations.

Click Save & Next to move to the next stage.

6. Select the Program Users and Approvers

Program users are sales users eligible for the incentives. Approvers are usually team leads and sales managers (or someone higher up in the organization hierarchy) who can edit, reject or approve the incentive.

Select a cycle through the dropdown and add the users who will be part of the program.

You can also copy the users to different cycles –

1. Click Copy Users to Selected Cycles.
2. You can click on the Filter option to select a specific year you want to copy to.
3. Next, select the cycles where the users will be added – you can select individual cycles or all cycles.
4. Once done, click Copy Users to Selected Cycles.

Next, you must select the user(s) who will be responsible for approving the rewards once they are calculated –

1. Click Edit to select the approvers.
2. You can change the Stage 1 approver by clicking the Change button.
3. Enter the name or email address of the approver.
4. Click on Add Stage + if you would like to add an additional approver.
5. Once done, click Save & Next.

7. Set Up the Program Criteria and Rewards

Each cycle can have a different Program Criteria. For example, you can define a 0.5% commission on the first cycle and a 1% commission on the next cycle.

To add a criteria, click + Add Program Criteria. Next, click on Add Condition.

Add a condition –

1. Select a Ruleset for the condition
2. Select the conditional operator.
3. Enter the desired value.
4. Click Add Conditions.
5. To add an additional condition, click on the icon.

In the following example, we have added 2 conditions. To achieve Condition 1, the user must generate revenue between Rs. 1 Lakh and 1.5 Lakhs. And to achieve Condition 2, the user must generate between 5 and 10 leads.

Once you have set up the conditions, you must set a Condition Pattern. It can be either an AND or an OR operator.

In the following example, we have selected an AND operator. Hence, both condition 1 and condition 2 must be met to satisfy Program Criteria A.

Next, you can configure Rewards–

1. Click Add Reward.
2. Select the reward calculation.
3. Enter the reward value.
4. Select a Ruleset if the reward value is dependent on a particular Ruleset.
5. Click Add Reward.
6. To add an additional reward, click on the icon.

In the following example, we have set up 2 rewards. Reward 1 is a percentage slab of 5% and 6% for revenue generated between Rs. 1 Lakh and 1.5 Lakhs. And Reward 2 is a multiplier of Rs. 100 for each lead generated between 5 and 10. Each time a user meets the conditions of Program Criteria A, the rewards are calculated.

If you would like to add additional incentives for the users, you can add an additional program criteria which can be triggered once Progam Criteria A is met. The steps are the same as above.

Click Publish to publish the incentive program.

8. Create an Incentive Program Through Goals

If you have a Goal set up for your organization or team, you can also build an Incentive Program for it –

8.1 Program Attributes

1. In the Attributes section, set up the Rulesets, Calculation Type, and Program Duration (refer to section 5 for a detailed walkthrough of the Attributes setup).
2. Toggle the switch for Do You Want To Add Goals To The Program?
3. Click Select Goals.
4. The Goals matching the program attributes will be shown.
5. Select the Goals for the incentive program.
6. Click Use Selected Goals.
7. Click Proceed.

8.2 Users & Approvers

The users are automatically inherited from the Goal. To make any changes to the user list, you will need to edit the list in your Goal configuration.

Next Steps

The View and Manage Incentives article will show you how to view the Incentive calculations, approve payouts, and manage the progress of the Incentive program.

Any Questions?

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