We are looking for examples of luxury Beauty Retail team-based performance incentives linked to sales staff behavioral outcomes, such as high sales performance, high quality of customer experience, and effective teamwork.

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We are looking for examples of luxury Beauty Retail team-based performance incentives linked to sales staff behavioral outcomes, such as high sales performance, high quality of customer experience, and effective teamwork.

Hi! Thanks for your request for examples of luxury beauty retail team-based performance incentives. The short answer is that retail and service based contest for employees, leads generation, education perks and employee commendation are examples of  the incentives that can be linked to staff behavioural outcome.
Below you will find a deep dive of my findings.


According to the director of spa operations at Preston Wynne Spa in California, the spa usually holds a retail contest in particular periods of the year. Nail tech teams are encouraged to sell the retail products as many times as possible. At the end of the month, they are entered into a raffle draw for a chance to win $150 in retail products. The director further stated that the retail promotion had been a huge motivator to the employees. Staff tend to sell more items knowing fully well they stand a greater chance of being selected from the draw. For the employer, it is a win-win situation. Aside from increased sales, before the start of the promotion, the Preston Wynne Spa reaches out to their regular brand for sponsorship for the contest giveaways. The vendor sponsors the promotion, “so no money comes out of the spa’s pocket”.


This method of incentive is useful for driving a particular set of product or items. At Preston Wynne Spa, the plan was to push series of services at a discounted rate to clients for purchase. “Series are beneficial for the spa because it keeps clients loyal and coming back,” says the director of spa operations. To drive the sales, employee gets a raffle ticket for each series of services sold. Team selected will receive a gift card or a free spa treatment worth $150.

Reward for contest winners can also be varied. According to Bonnie Conte of the Chicago based Avalon Salon and Day Spa, she gives incentives based on what the employee likes or enjoys. More often, she gives the winners “two hours of paid time off”.

3. New Clients/Leads Generation

Incentives based on new customers can assist to build businesses. The co-owner of Velvet Nail Lounge in Michigan offers 10% off the first service for new customers especially during the winter months when sales are slower. Nail tech with the highest number of leads that come in for services wins a gift card to a local restaurant or retail apparel.
According to Somer Jutras, the owner of LaBella Salon in Connecticut, cash bonuses are given to employees who bring in new clients. The incentive motivates staff has they generate leads through contacts with potential customers at several places they go.


Velvet Lounge Brown provides incentives by offering high performing staff with education perks. Employees can participate in continuing education courses or programs which are paid by the employer. Nick Brown in his words said, “I like giving that person a paid day where they go to the training, we buy her lunch, and they go with my wife (co-owner and nail tech)—it makes them feel special and endears them to our salon.”

At LaBella Salon, tickets are given for education class to the most outstanding employee with the most number of new clients. The employee can learn new techniques through the training and can then add fresh energy and enthusiasm to her work including transferring new skills to her co-worker.


Aside the cash based rewards, a simple appreciation of a job well-done can go far in boosting employee morale. When staff is happy, it increases their increased productivity, enhances customer experience and leads to high staff retention. Work commendations and praises for a job well carried out make people feel appreciated and valued.

An employee moral conducts can be noticed and acknowledged. Recognitions such as staff punctuality, dedication to work, staff that bring in new clients or generate more retail sales among other things can be appreciated openly, and that can go a long way to keeping employees happy and motivated at work. The team at Velvet usually go for outings especially when staff morale is down. “I take all of our staff out for sushi and cocktails, and it helps bond us together.” According to Nick Brown, he also said: “We like to commend employees who are doing an exceptional job because it keeps them going”.

Useful Insights

Creating an avenue for a healthy competition among the team is very important. An employee contest not managed properly can hurt the morale of staffs. According to a report by HBR, complex reward system could have their downside. Quarterly performance and overachievement bonuses need to be included in the compensation scheme to keep teams of high performers, low performers and average performers engaged all through the year.

The research also suggests that it’s important to pay attention to the timing of bonuses: A reward given at the end of a period is more motivating than one given at the beginning.

A field experiment conducted to test the effectiveness of team incentives in a selected retail chain reveals that team bonuses increase sales and customer patronage by around 3%. The report further stated that the complimentary offered within the team improved the operational efficiency of the business.

CONCLUSION

To wrap it up, retail and service based contest for employees, leads generation, education perks and employee commendation are example of luxury Beauty Retail team-based performance incentives that can be linked to staff behavioural outcome.

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