Are commissions a thing of the past? Here, two innovative O.D.s share their creative sales compensation strategies.
Just a decade ago, it wasn’t uncommon to pay optical staff on straight commission. For many practices, however, it resulted in some less-than-sterling sales situations. As Diana Canto-Sims, O.D., owner of Buena Vista Optical in Chicago, recalls, “It created a lot of animosity among our stylists. They recognized who the luxury clients were and would get aggressive when dispensing.”
What’s becoming more popular among practices large and small?
According to both Dr. Canto-Sims and David Holler, O.D., owner of Clarity Vision, with seven locations in North Carolina and Virginia, it’s much more equitable to create compensation based on team or group sales.
PLUS & MINUS
Paying on commission can have some benefits to a practice, but less so to individual employees.
According to The Corporate Financial Institute, plusses are that a commission “encourages employees to work harder and helps manage payroll expenses.”
On the downside, the tactic potentially puts “too much focus on earning commission and affects team dynamics.”
Sales Tiers
Here’s how sales-focused compensation works at Buena Vista Optical.
“We have opted to create daily group sales tiers for everyone to reach together,” says Dr. Canto-Sims. “When we reach certain tiers during a month, we buy everyone lunch, which is sponsored by a frame or lens rep.”
One of many benefits? “The staff encourages each other and helps close the sale for their fellow opticians because everyone wants to reach the highest tier goal for that day,” Dr. Canto-Sims notes. “We’ve found it’s a very supportive way to increase revenue.”
It can also be fun. Dr. Canto-Sims occasionally does a quarter-long promo where a rep donates merchandise, like a wallet or purse. “Every stylist optician gets a raffle ticket each time they dispense specific items, like a particular frame, lens, or sunglass,” she shares. “At the end of the promotion, we shuffle everyone’s tickets together and pick a winner.
Team Goals
At Clarity Vision, goals are set by the team (front desk, optometric techs, and opticians). “We don’t incentivize anyone individually,” says Dr. Holler. “Everyone on each team benefits when the team makes their goals. In addition to monthly goals and monetary bonuses, we also have quarterly goals and merchandise or experience bonuses.”
Why both monetary and material? “We realize that some people are incentivized by money,” says Dr. Holler, “while others are motivated by material items they would not normally purchase—like a television, Apple Watch, iPad, etcetera.”
Group Experiences
At Clarity Vision, there are quarterly team experiences as well as monetary and material awards. “Some are team-building experiences, such as a ropes course or escape rooms,” explains Dr. Holler, “while others are just for fun.”
In October, for example, Clarity Vision took about a dozen team members and spouses to Busch Gardens in Williamsburg, VA, for a day of “Howl-O-Scream” fun, recalls Dr. Holler.
According to both O.D.s, an innovative commission structure can make a big difference in both revenue and retention. Plus, it can create some fun.