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Misaligned incentives
As a small business owner, I’m often looking for ways to better incentivize our staff to work hard and for our clients to stick with us. For our clients it’s not about “incentives”, but rather providing the right products, data and outcomes to satisfy their needs, so it’s not all that different from what an incentive might look like.
The problem is that not all incentives are good.
For example, stores that pay employees by commission are encouraging those employees to push for sales even if it’s a bad fit. If a store employee encourages me not to make a purchase, that will create a better bond and likely lead to more sales in the long run.
PGA Superstore
A few months ago, I went into the PGA Superstore with the hopes of getting a new driver. I made it clear that I was ready to spend money right then, but after some discussion and hitting a few balls with some of their new drivers, the employee suggested that I not purchase anything that day. Instead, they suggested that I first get some lessons to improve my swing, and then we’d be able to find a proper driver for my needs.
I was surprised that they turned down the sale, but they earned huge credibility in my eyes and I’ll certainly go back there when the time is right.
