Have you ever considered a staff incentive program to drive desired behaviors? As a follow-up to our recent article on Key Performance Indicators (click here if you missed it!), we’ll review ways you can motivate your team and how to build a goal-oriented workplace that aligns with your KPIs.
3 Common Goals of Incentive Programs:
- Increase Revenue Per Patient: Service add-ons, upgrades, and retail sales add incremental revenue to patient visits. These upgrades have an immediate impact on profitability.
- Standardize Product Offerings: Streamlining your inventory can increase efficiencies for your staff and can improve the overall patient experience. Standardizing the number of products you offer will increase product knowledge confidence amongst your staff and will keep your team focused on driving incremental growth in your practice.
- Increase Profitability: Incentive programs can effectively drive staff behavior and improve practice profitability. For example, instead of discounting the value of state-of-the-art products; compensate your staff to sell bundled treatments to improve both your revenue-per-patient and profitability-per-patient—win, win!
Align your incentive programs to your practice’s profitability and improve your overall patient experience, staff retention, and revenue per patient. Performance-based incentives are a great way to motivate staff and improve employee morale. Effective incentive programs should include both injectors and the front-desk staff to encourage a team approach to patient care.
The positioning of these incentive programs is very important. Your staff should clearly understand your goals and how this will bring value to both patients and themselves. Provide educational opportunities for your staff to ensure optimal performance and adoption.
Ways to Incentivize Your Staff:
There are many ways to structure staff incentive programs. Here are 3 ideas to get you started:
- Use Skincare for Up Selling: Create a team goal for monthly skincare product sales and incentivize the entire team with individual Visa gift cards for achieving the goal. Teach the team how to discuss skincare as an upsell opportunity after every treatment. Focus on a single skincare line for this program to standardize product offerings and staff expertise.
- Leverage Injectable Cross Selling Opportunities: Offer commission or key milestones bonuses for upselling. For example, consider incentivizing staff for adding injectables to device-based treatments.
- Boost Profitability with Bundle Selling: Set a goal for the number of patients you want to receive bundled treatments. For example, combine a device, injectable, and skin care treatment to maximize profitability and expose patients to your entire product portfolio.
Compensation for the Whole Team
There are several ways to establish metrics for your team:
- Revenue per patient: Increase revenue per patient through cross-selling.
- Retail per hour: Establish revenue targets based on hour revenue performance.
- Specific product revenue: If your incentive program is centered around the adoption of a specific product or line of products, you may want to use revenue benchmarks as a metric.
- Non-revenue metrics: Depending on your goals, your metric might be related to culture-improving initiatives such as customer-satisfaction scores or changes in workflow and internal processes. Ideas may include optimized inventory management that will have an indirect impact on profitability.
The Day Spa Association¹ ran a survey on compensation and benefits and identified the following payment commission benchmarks for front desk staff:
- 47% paid 6-10%
- 28% paid 3-5%
- 11% paid 1-2%
- 10% paid 11-15%
- And 4% paid 16-20%
Non-Commission Incentive Programs
Individual sales commissions are not the only way to reward your hard-working staff. Consider setting team metrics where everyone works towards a common goal and receives the same incentive or bonus based on achievement. Over time, this type of team approach can boost morale and increase productivity.
Here are a few non-cash commission ideas that can motivate your staff:
- Rewards such as tickets, gift cards, etc.
- Employee competitions – winner receives a gift, celebratory team lunch, etc.
- Increased employee discounts on products and services you offer
- Increase in the number of vacation or wellness days
- Swag bag or gift basket
Also keep in mind, when trying to motivate staff, public recognition goes a long way.
Our team is available to help you get started with your team incentive program.
At Synergy Aesthetics, we are here to support you. Our team is available to speak with you should you have any questions, contact us today—Your Success is Our Success!