Incentives
Goals in Vymo are designed to track sales targets and achievements. They play a crucial role in motivating sales personnel through incentives.
- Achievement-Based: Sales personnel receive incentives when they achieve a specified percentage of their sales targets.
- Incentive Plans: The specifics of the incentives, including the percentage of achievement required and the corresponding reward, are determined by the incentive plan adopted by your organization.
Note
Vymo manages incentives through a partnership with Kennect.
Kennect calculates the incentives, based on the configured slabs, and sends the data to Vymo. The incentive numbers are displayed on the goals cards together with the target and achievement numbers.
Use case
Incentive feature is result of integration with Kennect. Vymo doesn't provide a standard incentive structure. Incentives are customized according to organization's requirement.
Here is an example of incentive slabs for different roles in an organization:
Master Slabs
| WFYP | Payout |
|---|---|
| <80% | 0 |
| 80% to 100% | 0.30% |
| 100% to 125% | 0.40% |
| 125% to 150% | 0.50% |
| 150% to 200% | 0.60% |
| Above 200% | 0.75% |
Performannce spread multiplier
| > 60% | Factor |
|---|---|
| Below 60% | -25% |
| 60% to 80% | 0 |
| Above 80% | +20% |
SP Activation Booster
| SP Active | Factor |
|---|---|
| < 18% | 0% |
| 18% - 25% | +10% |
| > 25% | +15% |
Mindshare Booster
| Mindshare | Factor |
|---|---|
| Below 20% | 0% |
| 20% - 30% | +10% |
| Above 30% | +25% |
Persistency Multiplier
| Persistency Kicker | Factor |
|---|---|
| Below 75% | -100% |
| 75% - 80% | -50% |
| 80% - 85% | -10% |
| 85% - 90% | 10% |
| 90% - 100% | 15% |
Quaterly incentive calculation
| Particulars | Amount |
|---|---|
| WFYP Target | ₹21,00,000 |
| Achievement | ₹30,00,000 |
| Master Slab Pay | ₹15,000 |
| Performance Spread (20%) | ₹18,000 |
| SP activation (20%) | ₹19,800 |
| Mindshare (25%) | ₹23,760 |
| Persistency (88%) | ₹26,136 |
| Final Amount | ₹26,136 |
How to calculate incentive
If a cluster manager with quarterly target of ₹21 lakh (total insurance generated from closed leads) exceeds to ₹30 lakh, they are eligible for ₹15,000 incentive on master slab. If their performance spread is 80%, there will be a 20% incentive increase and the total incentive becomes ₹18,000. With 20% SP activation, the incentive increases by 10% which results in ₹19,800 as total incentive.
If the mindshare is 25%, additional 20% will be added to ₹19,800 so total becomes ₹23,760.
If the persistency is 88%, additional booster of 10% will be applicable. The total becomes ₹26,316.
Master Slabs
| WFYP | Incentive |
|---|---|
| Below 80% | 0 |
| 80% - 100% | ₹50,000 |
| 100% - 125% | ₹75,000 |
| 125% - 150% | ₹1,00,000 |
| 150% - 200% | ₹1,25,000 |
| 200% and above | ₹2,00,000 |
Performannce spread multiplier
| >75% | Factor |
|---|---|
| Below 60% | -25% |
| 60% - 80% | 0 |
| Above 80% | +20% |
Persistency Multiplier
| Persistency Kicker | Factor |
|---|---|
| Below 75% | -100% |
| 75% - 80% | -50% |
| 80% - 85% | -10% |
| 85% - 90% | 10% |
| 90% - 100% | 15% |
SP Activation Booster
| SP Active | Factor |
|---|---|
| < 18% | 0% |
| 18% - 25% | +10% |
| > 25% | +20% |
Quaterly incentive calculation
| Particulars | Amount |
|---|---|
| WFYP Target | ₹50,00,000 |
| Achievement | ₹60,00,000 |
| Master Slab Pay (120%) | ₹75,000 |
| Performance Spread (20%) | ₹90,000 |
| SP activation (20%) | ₹99,000 |
| Persistency (88%) | ₹1,08,900 |
| Final Amount | ₹1,08,900 |
How to calculate incentive
If a circle manager with the quarterly target of ₹50 lakh (total insurance generated from closed leads) exceeds ₹60 lakh, they are eligible for ₹75000 incentive on master slab. If their performance spread is 80%, there will be 20% incentive increase and the total incentive becomes ₹90,000. With 20% SP activation the incentive increases by 10% which results in ₹99,000 as total incentive.
If the persistency is 88%, additional booster of 10% will be applicable. The total becomes ₹108,900.
Master Slabs
| WFYP | Payout |
|---|---|
| Below 80% | 0 |
| 80% - 100% | ₹2,000 |
| 100% - 125% | ₹3,500 |
| 125% - 150% | ₹5,500 |
| 150% - 175% | ₹7,500 |
| 175% - 200% | ₹9,500 |
| Above 200% | ₹10,000 |
SP Activation Booster
| SP Active | Factor |
|---|---|
| < 15% | -50% |
| 15% - 20% | 0% |
| > 20% | +10% |
Persistency Multiplier
| Persistency Kicker | Factor |
|---|---|
| Below 75% | -100% |
| 75% - 80% | -50% |
| 80% - 85% | -10% |
| 85% - 90% | 10% |
| 90% - 100% | 15% |
Quaterly incentive calculation
| Particulars | Amount |
|---|---|
| WFYP Target | ₹15,00,000 |
| WFYP Achievement | ₹15,00,000 |
| Slabs | 100 - 125% |
| Normal Payout on Achievement | ₹7,000 |
| Under quarterly Catch-up | ₹9,500 |
| Additional Payout | ₹2,500 |
How to calculate incentive
If an agent exceeds ₹6 lakh (total insurance generated from closed leads) with the target of ₹3 lakh, they are eligible for ₹5,500 on master slab. If the SP activation of the agent is 20%, there will be 10% incentive increase on base slab. The incentive will be 20% on ₹5,500 which sums up to ₹6,600.
With 88% persistency, their incentive is increased by 10% and the total becomes ₹7,260.
Note
The use case provided is a quarterly based incentive plan. It spans from July to September.
About Kennect
Kennect is an incentive management system that offers incentive solutions to their partnered organizations and customers. For the integration to work, the following steps must be done on the Kennect interface:
- Creating a Kennect instance for the company
- Defining the incentive plans