The Ethics Of Salesperson Incentives

I saw an article the other day on Current.com.au  that got me thinking about the ethics of salesperson incentives and customer service.

When you’re hired by a company as a salesperson, it’s your role to sell the products that you’re hired to sell.  No argument there….and while there are still some potential ethical issues if a company hired salesperson is selling a product to a customer that they know isn’t really going to meet that client’s needs and expectations….that’s not the ethical situation that I want to focus on here.

The Current.com.au article discussed how Panasonic Australia recently launched a major trade promotion, ‘LUMIX – Shoot for New Zealand’, where the top performing salespeople from around Australia will win a great photographic opportunity in New Zealand.

Now, this has nothing to do with Panasonic, Lumix or cameras.  We could be talking about wine, other electical goods, hardware tools, and the list can go on and on…..even into discussions on the ethics of on and off line affiliate programs and partnerships.

This opens up the question of when salespeople have the opportunity to sell a number of different brands from different companies – and that the incentives the suppliers are offering to the salespeople can potentially sway their advice when making buying recommendations to their potential clients.

If you’re a camera salesperson, what a great opportunity…..but what if that opportunity, if not handled well when you’re talking to potential customers, could cause buyer apprehension, leading to no sale as the result?  What if not handled appropriately, could do serious damage to your own reputation and that of the store where you’re working (or own)?

Here are two scenarios – which would you be more comfortable and confident with if you were selling cameras?

Scenario One:  A potential buyer enters your store and has no knowledge about Panasonics trade promotion that incentivises camera salespeople to sell their Lumix cameras.  You’re keen to win one of the top 100 spots for a trip to NZ, and you make sure that you sell the benefits of the Lumix camera over and above any of the others.

Scenario Two:  A potential buyer enters your store and has no knowledge about Panasonics trade promotion that incentivises camera salespeople to sell their Lumix cameras.  You’re keen to win one of the top 100 spots for a trip to NZ, but your approach doesn’t change.  You ask the questions you need to discover which camera will be right for this particular customer’s specific situation, and based on what you learn, you make  a recommendation – if it’s the Lumix camera that’s what you recommend…if it’s another brand, you recommend it.

What if anything would change if you knew that the customer was aware of the Panasonic promotion?

I personally do not have any issues with incentives for internal company salespeople.  I also do not have any issue when suppliers of different brands offer incentives for retail salespeople to sell their products.

Where ethics comes into it, is when the recommendations and advice are solely based on the incentives, and not meeting the customers’ needs, wants or expectations.

If you have an ethical selling situation that you’d like to share (your anonymity is assured), please email me at info@salescoachcentral.com