Webinar: Keeping Employees Motivated in 2019
Hoopla and CloudMyBiz present a webinar to help your team stay motivated all year long! We talk through the science of motivation, and give practical tips for financial organizations to keep their organizations motivated throughout the ups and downs of 2019!
Hello everyone and thank you for joining us for the motivation in 2019 motivational webinar. My name is Josh Benedetto I’m the digital marketing manager here at hoopla and honestly when we first decided to do something about motivation we initially thought about doing something in January but everybody’s motivated in January so we wanted to do something in February once people maybe started falling off those New Year’s resolutions a little bit because we want we want you to stay motivated with your goals.
Today we’ve got two great speakers, we’ve got Henry Abenaim from CloudMyBiz – CEO and we also have Mike Smalls, CEO of Hoopla so without further ado I’m gonna go ahead and transfer this over to Mr Mike Smalls and he will take it from here.
The Science of Motivation
Well thanks Josh I appreciate it. You know as Josh mentioned we’re gonna be focused on a lot of the science of motivation and talk about the topic generally there is so much data and information and research to cover here that we’re gonna barely scratch the surface today but our entire business is focused on a sales motivation platform where we deliver the tools to allow companies to communicate, disseminate and create a culture of high performance throughout their companies through large screen TVs, displays of information, real-time metrics, celebration competitions, etc and so we spend a lot of time looking at the science of motivation and understanding what makes it work and why it’s important for organizations. Today I’m just going to talk about a couple of things first you know who cares about motivation why is this even important get into a little bit of the definition and the components and then give you a few key takeaways for your team before passing it off to CloudMyBiz to chat a little bit further about specifically in the financial services arena how you guys can apply that for your businesses.
So first of all who cares about motivation right now work we’re focusing our presentation today really around the the sales organizations because this is an area of most and most companies where motivation is one of the most important aspects for a variety of reasons you know one is the the extremely high rejection rate that sales inherently has right so if you have a a great close rate of 35 or 40 percent that means you’re failing 60 to 65 percent of the time with large blocks of failure in between successes and so motivating a sales team can be one of the most challenging things an organization does.
Sales managers really care and it impacts the entire organization right. There’s a lot of research out there that talks about you know how well a motivated sales team can perform and in fact you can grow profits three times faster. Competitive sales teams that are motivated deliver double the sales, they’re more productive and they have less turnover. Which makes sense when you think about how a salesperson ticks: you know if they’re if they’re getting demotivated they’re gonna start looking around for other jobs and this is one of the most costly areas out of business so getting a team motivated in driving performance is so critical to your success and the customers are greatly impacted. I mean there’s nothing more important than having an engaged and motivated team that’s interfacing with your customers. In fact, the customer service ratings, the perception of the customer, the brand image is so dependent on that interaction between a salesperson and a customer. So getting that team motivated is really critical.
One of the things that’s interesting is when you think about this from a sales managers perspective they’re looking at a typical organization where the stars make up about 15 to 20 percent of the time and they need to be challenged but the way you motivate that group is a lot different than you would say the core of the performance group. How do you get that big middle performing, maybe moving up with just a few percentage points can have the biggest impact on your organization.
So let’s move to sort of a definition of motivation. This is why you get up in the morning the reason you do anything at all is what motivation. I mean everybody has a good sense of motivation and that you know it’s it’s the thing that makes you do anything whether it’s the avoidance of pain or seeking of pleasure or whatever it is. What we don’t know is like why it works and how to take advantage of that.
There’s two different types of motivation those types are extrinsic type of motivation that external drive from you know others may be rewards or compensation or praise or you know just pure pure opinions of you. Then there’s the internal or the intrinsic side of motivation, this is driven by what makes someone perform in a vacuum outside of those external influences things like the freedom to do their own thing (autonomy) or having a purpose or be able to master new skills and that sort of thing. There’s a lot of studies around int intrinsic versus extrinsic motivation. The research that’s come out over the last few years has been really important in this category because the old ways of motivating employees generally is kind of a little bit outdated right. We used to think we know salespeople are coin-operated and that’s still true people care about their compensation, they care about making that commission check and so that’s still an important aspect but it cannot be the only thing we think about when it comes to motivation. You got to be careful because too much extrinsic motivation can cheapen the intrinsic so imagine if every time one of your best friend did you favor you had to hand them over some cash, it kind of cheapens why they’re doing it. They’re doing it for more intrinsic means to to be a good friend to you and so what we want to do is make sure that we’re not over weighting the extrinsic motivation and looking across the board about creating an environment that enables motivation and people to become motivated on their own as well.
Let’s look at what makes up motivation. So as I mentioned you there’s been a lot of scientific studies around this topic over the last several years and specifically because of new technologies like MRI machines and scientific studies have gotten more advanced. What they’ve been able to learn that there’s areas in the brain that are very linked to motivation really specifically around dopamine which is a chemical in the brain it’s sort of like this chemical they create that that allows communication within the brain and where that dopamine lies really has an impact on a person’s motivation. They used to think that when someone achieves something dopamine would fire and and become a reward for hitting that goal or winning something but what they’ve learned now is that dopamine actually plays a role in creating motivation. It’s firing off before the actual event to provide that last bit of motivation to get someone across the line.
They did a study with rats where they took rats that had a high level of motivation in they’re sort of responsible for the motivational areas and then other rats whose dopamine was in other parts of the brain and those that were had a high level of dopamine in the motivation center. What they found that the dopamine would fire right before they needed to jump over a wall and get some cheese where the other rats couldn’t even get there their bodies over it because they didn’t have the dopamine in the right spots. The differences between say a go-getter and a slacker is where that dopamine is focused. Everybody has dopamine but where is it focused in their brains and what is incumbent on management to provide is to create a motivational environment that you know helps to fire off that dopamine in the right way and give people the the means to be able to move it.
So let’s take a look at a few of these key components as I mentioned. There’s a lot of components, we’re just gonna focus on a few today so the first is purpose and everything starts with purpose. People need to know why their role is important and why the task that they’re doing matters to the organization how it impacts everything. When you’re asking someone to do a hundred calls a day, they need to understand the why of that how is that going to impact if I actually make these phone calls or if I if I bring in as many opportunities. What’s the impact of the rest of your organization, how does it impact the company, in my team etc. So the why of motivation is critical – a lot of folks focus on the how, and how are the mechanics you know the the elements how you actually make the phone call and and who you’re gonna call etcetera but the why is what drives it and links it to motivation and is a much more powerful element and by linking those two things together you get a huge powerful element here.
This is also linked to a key concept called goal commitment where when you set a goal getting people to actually commit to that goal. They’ve done some studies on the Fitbit, just wearing the Fitbit doesn’t make you more fit surprisingly you actually have to be committed to getting healthier, committed to losing weight and the Fitbit just becomes a mechanism for measuring that and and measuring those 10,000 steps. They found that folks who were committed to the goal of 10,000 steps when they looked at their Fitbit and saw that they were only like 7,000 steps in they got busy and started moving where those people who were just like wearing the Fitbit and just kind of interested actually seeing that they hadn’t hit that goal was demotivating. Goal commitment is critical and the way you do that is by linking that to purpose.
The second area is recognition. This is a huge area and very important especially around the extrinsic motivation and creating that environment so people understand that the work that do is appreciated. It also needs to be a meaningful element so one of the things that is refined is really important that our customers tell us is that celebrating that those wins and that progress publicly is absolutely huge you know those the employees especially sales people when they’re hitting goals or making progress towards their goal you know it’s a really critical for that to be timely and public that they get that that feedback right away. There’s a bunch of studies around the power of these small wins too. So it’s not just about hitting quota or landing the big deal it’s about you know hitting those daily weekly and monthly goals along the way and that power of the small wins keeps people going and has a huge impact on the organization.
There’s a whole bunch of studies around: how do you actually recognize people and and if you’re gonna do it through reward mechanism was making sure people have a the opportunity to be part of that and participate in the process so that they actually have more power over choosing what they’re going to be rewarded with.
Then there’s the area of competition and this is a you know a huge area that we leverage a lot in sales right. First of all we’re competing with our competitors all the time but also we’d like to create friendly competition within the teams now this is an area that is not going to be motivational for everyone the good news with sales teams is it tends to be very powerful.Only about 50% of the population are positively impacted by competition: the introduction of competition in achieving a goal it will actually motivate them higher. 25% are kind of neutral about it doesn’t matter either way and then there’s actually 25% of population that that’s negatively impacted.l Like I said, the good news for sales is that competition is generally a very powerful motivator.
But there’s a couple things you got to keep in mind when creating friendly competition within your organization. It can actually boost performance in productivity it quite a bit but it’s got to be a fair playing field so looking at team size can be a large issue right. You want to kind of group people within similar skill sets and in smaller groups.They actually have done studies where teenagers taking SATs tests perform better in smaller towns where the number of the test-takers are smaller than in big cities where the crowd is huge where they’re all taking the test because those smaller groups look like less competition. I can actually achieve more and people perform better – so dividing those contests into small groups can be really important and in like skill sets and then keeping those contests short and sweet so that people can actually achieve those results quickly and again measuring those small wins, the activity not just the results.
Finally there’s an area that’s really important and that is teamwork: tying the performance in the motivation to team can be really powerful. They’ve done a bunch of again, scientific studies about how even sharing a birthday knowing that you’re sharing a birthday with somebody actually makes you work better together with them and so tying the team together and showing that we’re all on the same team or going after the same goals can be a real powerful motivator.
Getting people to work better together and perform better nobody wants to let each other their teammates down. It allows them to be part of something greater than themselves right and you know if you can create and foster those healthy relationships you’re going to get better performance. Similarly they found that the same part of the brain triggers when you see somebody yawning and it makes you yawn that same part of the brain is triggered when we watch our favorite sports team play and we feel a you sort of a connection to that sports team as if it’s like we’re actually on the field playing the game with our with our team.
By fostering that teamwork you can get that same side of thing where people are literally feeling like they’re performing even when their teammates are doing it. So set team goals as well as individual goals to make sure that you can tie that to the team so again we there’s a lots of cover here I want to give the CloudMyBiz and Henry a chance to talk about their perspective on this.
A couple key takeaways for us is that we want to make sure that you start with purpose and show your your team the why of what they need to do. Make sure you’re tying with their their goals to that team and set those clear and achievable goals with achievable milestones along the way. Then supplement that with consistent timely praise and recognition in real time you know personalized you know very public. Then use competition carefully it’s very important and it can add a huge amount of performance enhancement to the team but do it carefully in the right kinds of you know groupings etc. And don’t forget to to foster that teamwork among your team and you’ll get a huge impact.
With with our platform we kind of look at these areas and we can see different parts of the application and different ways that our customers are using that you know when they’re looking at trying to create purpose and meaning we have the ability to sort of let them showcase their goals and progress and company-wide metrics and tie together with with what the company is trying to accomplish. We have the ability to give them instant recognition public personalized news flashes with walk-up songs and all kinds of fun things create contests and competitions etc. Finally just really fostering that teamwork so there’s a lot of things that are inherent in this that are important we’d love to you know we can certainly share that with you at a different time maybe walk you through a demo of the product and give you that give you a chance to see that so with that I’m going to pass this the baton over to Henry let him share it the next piece for you.
Motivation for Financial Organizations
Thank you all right thank you all this is Henry from CloudMyBiz. Thank you Mike that was really interesting information for everyone hopefully on the call found it helpful in understanding the concept of motivation of why it’s so important what I’m gonna focus on is taking this down to the lending space and really giving a perspective on how this could be utilized for lenders or finance companies and which is where CloudMyBiz specializes in.
We’ll go through an introduction of who we are and what we do in the lending space we’ll talk through the unique challenges for the alternative lenders and how a motivation tool like Hoopla can really help with those areas and from sales origination, which is what Mike was focusing on but also in underwriting which is a big part of a company is a group up our deals that go through underwriting and having that efficiency and we’ll talk soon about how that why that’s so important in the servicing portfolio management and overall company culture and how it boosts user adoption.
So, Henry here, I’m CEO and principal consultant here at CloudMyBiz I’ve been in the lending space using Hoopla as soon as it came out back in 2008 and over the last six seven years been implementing Salesforce and tools like Hoopla to help lending companies grow and thrive and have the technology they need to expand. One thing that is interesting to point out is that we’re a certified Salesforce implementation company focusing on the lending space we see ourselves as a thought leader and it’s thought leader with being able to bring the right solution to the right innovative technology to help shape the lending industry and help our lending clients. And that’s what we found that a tool like Hoopla or the motivation element that you bring to the office can really make a big difference.
Let’s talk about the alternative lending space and the FinTech industry so we everyone on the call I’m sure knows plenty then that we don’t need to go into too much but what’s important to mention is that this is a significant large rapidly growing space as you can see here on the screen that just the actual percentage of loans from alternative lenders is just growing tremendously 36% compared to 1 percent in 2010 come from alternative lenders now so it’s a very important space and one thing that really drives the space is innovation.
Innovation is really what makes a difference between a lender that can grow thrive and compete with its competition versus one that is falling behind and innovation comes by being able to make decisions faster and be able to deliver capital quicker and then will that all fold down it all comes back to the team that’s behind the scenes and making it all happen.
So let’s talk about some of the unique concerns and we’ll start with you know the unique challenges that the FinTech space experiences.
Here are the unique challenges that we’re going to cover today: being able to have a quick turnaround time on deals being able to address the high cost of acquisition in this space minimizing risk and the challenges on managing your portfolio under servicing loans.
So let’s talk about how motivation helps in these areas and some examples that we’ve seen in sales origination, underwriting servicing that will help deliver that productivity. Here is starting with sales and origination what’s the motivation for salespeople as we mentioned and how motivation to like Hoopla can really help is thriving competition and I’ve personally you know seen with our customers as well as in my experience of lending space that when there is a visual motivator it’s a game changer. Being able to have a sales team feel that their work is being valued instantly and recognized immediately in a visual manner in the office where it matters most drives you know incredible increase in productivity and in conversions.
When I was in the lending space I remember the minute dashboards went up on the screen showing call metrics who’s making calls who’s closing deals our conversion leaderboards it just changed the entire energy around in what people are focusing on having when deals closed one thing that’s really neat, I know most people on this call are using Salesforce as a CRM and when you market opportunity as close to have a celebration sound in the office which is what the Hoopla tool can do or any you know would change the excitement of closing a big or small deal and have that immediate gratification talking about incentives and pipeline.
So of course if you’re running different goals or different bonuses different tiers whoever cover you know reaches a certain number of deals close being able to show that thermometer so to speak on the screen and everybody is really aligned towards that goal the same is with pipeline tracking. What’s key in the sales organization is to be able to really monetize the pipeline, understand what’s there and make sure you’re maximizing the close percentage and being there being able to keep everybody up to date and creating conversation in the office around key deals really turns things around. Having a motivation tool like a flat-screen TV I’ve seen firsthand that happening.
Enough said about sales let’s talk about underwriting and what’s unique about underwriting is it’s a real it’s a real important part of every business every lender any finance company in being able to review deals and make credit decisions in a timely fashion. So everything from tracking to how many deals we have in each state, are there bottlenecks, it’s very different.Have it on a report that you review that night or what’s a week but having those up on the screens and making sure each team understands what they have really helps drives moving deals through quickly.
Competition, you know, people are driven by competition it just is how it works and when one team’s turnaround time is 25% quicker than another team and that’s showing up on a leaderboard. I mean that speaks for itself and then driving speed, productivity, efficiency, you know we we all a lot of law driven by being able to get back to a borrower quickly and offering a turnaround time of hours is very common today and even less than that is what companies are driving for so being able to not only promise it to your customers and have your team be committed to it but being able to have a visual driver in the in the office that gets the team to follow that and show metrics around turnaround times and real time really is a game changer. Showing top deals for the company just helping everyone focus around important deals and often times there’ll be a subject matter expert that can help another another person take a deal across the finish line because they know something or have worked with a similar file in the past and that happens when you bring that visibility.
Finally the loan servicing and portfolio tracking, this is definitely relevant to a lot of you who have joined today’s meeting and thank you for joining. When we’re looking at managing the portfolio the difference between maximizing renewals and having the repeat business upsell cross-sell opportunities is huge and being able to have those drivers in motivating upsell conversion percentages and showing the the upsell or renewal pipeline is one very easy step which really crosses over into sales collections.
We all have a loss mitigation department and any good in any lending company to ensure that the default ratio is low that and whenever a deal seems to be going south it’s brought right back on track and having a collections team that are motivated and there’s some type of gamification around how many calls you make how many follow ups how much money did you collect on your on your assigned deals that are loss mitigation. What is your percentage of recovery and having that in a fun way just turns and spices up and otherwise unglamorous job to some and and in that department a 2 or 4 percent increase could mean millions of dollars so imagine if you have a sales collection team working in a dark room or collections team working where there’s you know clear metrics on driving excitement in the office and what that changes it could be huge.
Then just looking at the portfolio why keep the data siloed being able to take what would otherwise be on a spreadsheet and put metrics around the portfolio up on a flat screen in the office has proven to be really really helpful and let the metrics you know do the talking and and say it all.
Finally something that is really interesting that you know became a huge benefit in with our customers who are using a hoopla are my experience as well in the lending space is that when you have a CRM your serum is only good as the data that’s entered. We all know that if a salesperson does not enter their notes or does not log their calls or does not move the statuses forward same with an underwriting team. If they’re using Salesforce to originate on the right loans, if the data is not being entered properly you run reports and you’re scratching your head and realizing you have a user adoption problem. But the minute you put a leaderboard up and you put the metrics in a fun visual way in the office you see a immediate change in the data entry and in the user adoption of the system.
Companies will often see that there’s a policy that the companies implement and we promote and that is if it’s not in Salesforce it doesn’t exist and certainly that is something that is going to be driven by having these metrics up on the screen and people knowing that if they don’t enter it in Salesforce they will it will not be there and it will not show and that helps drive user adoption. The next thing is keeping workers plugged in and up to date just internal company announcements we’ve used it for promotions if you’re running a new product or a new bonus for your team or your outside channel partners how do you keep everybody aligned?
Being able to have this you know ESPN type of channel running in the office with with this information really really keeps everybody on the same page focusing on big deals coming through, focusing on incentives and even remote workers can log into a channel outside of the office and partake in this.
Finally when you’re talking about attracting good talent in the office and when they come in for interview and they get a view of the screens of the office it just changed the entire feeling for the culture of the company. It promotes good culture, transparency and gives a feeling for ‘hey this is a place that we need that we’d love to work’.
To to wrap this up if you know what we will be discussed today really driving user adoption from everything from the way people enter data being able to keep everyone plugged in up-to-date. Drive speed around the sales underwriting side, really is the game changer when you have a tool that motivates everybody in a visual manner.
I’ll turn it back to Mike and Josh so we can go into any questions that we have from the audience and again thank you everyone for joining and hope you all found it helpful and beneficial to your own each and your own businesses.
Mike and Henry if you guys wouldn’t mind sticking around for a little bit here we have a couple of questions that have come in and i’m just gonna go ahead and pick one and filled it whoever would like to take it can take it so the first question:
If i want to give rewards to my sales team for doing well do you have any suggestions on types of prizes or rewards? or i’m guessing like incentives or those kind of things?
I can take that Josh this is Mike Smalls you know I think this this is an area where you know companies can can look at it this from a bunch of different angles so we’ve seen a really cool reward job there there’s the classic you know here’s an ipad or you know the new the latest you know Amazon Alexa kind of toy there’s always the trips and what-have-you but one of the things that we have used at our company that’s been very successful is thing called blue board it’s like these experiences that you could hand out a certain number or sort of levels of experiences and the reps can go up and sort of choose their own whether it’s learning how to make sushi or how to you know practice a circus act or jump out of an airplane or whatever it is that’s very an interesting and memorable for people which i think has been pretty powerful for us.
Next question: Is it challenging or time-consuming to integrate hoopla to Salesforce and and in addition to that what I would a consultant be helpful in installing and configuring hoopla or can a team do it internally?
Well I’ll tell you what I’ll take the first part and then Henry if you want to talk about the may be the consultant side so we have designed Hoopla to be very straight forward with integration essentially we take advantage of reports that you’ve already built and we can grab data from those reports and and automatically refresh the information as it comes in additionally we can automatically respond to changes in objects or closing a deal etc and have that trigger an event within our system the integration is straightforward and you know anybody with the the correct API can do that I think where the where it can be helpful is if you’re trying to think creatively about the the kinds of metrics you want to set up and how you want to you know organize that it can be really helpful to have an outsider give you some advice on that front but terms of the technical integration it shouldn’t be require there’s no coding involved etc.
Yeah and I’ll add to that a lot of our clients appreciate it that they can really manage it handle it themselves for the most part that’s that’s typically how we’ve seen it and it does not require a partner.
Ok this is a bit of an interesting question here: How do I know when my team is more motivated? I’m guessing this has something to do with once I’ve you know once they’ve implemented some of these techniques how can how can you tell?
I think there’s metrics that you’re already driving your business around right so the first placeI would look is you know are you seeing better performance I think if we if you break down the performance like we talked about on this on this webinar with smaller incremental steps and small wins along the way it’s a lot easier to know whether you know things are happening and going the right direction rather than waiting until the end of the quarter of the year to see what the results were then it’s too late. But what you want to do is you want to put those measurements in place and and track that and it does two things one: is it creates more motivational environment because people can start to feel that win and happening but it also gives you a chance to measure it much quicker and that in the process.
One more question here: Will any sensitive data be sent to Hoopla I’m guessing once it’s been set up and everything’s going to Hoopla get any sensitive data?
We just simply get an aggregate value that’s determined by the customer so if you set up a report that might track revenue and your the the reports gonna feed us a number that’s used to display so anything is to being displayed is what you’re looking at we then look at at the data and the changes and provide insights on changes but we’re not actually delving into the actual confidential records of the information in sales. We’re not copying those records over per se we’re just looking at simply aggregate summary level metric values and if you want to share like the who and the what right so if you want to when you want to celebrate a win and say you know John just closed a deal with ABC company for twenty five thousand dollars that’s the data that’s gonna be passed over just that information.
I’ll go ahead and make this our final question for today: Can I have different screens show different metrics for different teams in Hoopla if they were looking to do something across multiple offices and different teams?
Yeah as a matter of fact that the whole design of this system is it’s kind of the TV channel model right so each office or location can have a local channel and there can be also shared national or you know company-wide content that is published on all screens. But the channels that are very flexible you can switch channels on any device has many channels as you want and a lot of companies will personalize that by local market or by local team and becomes really powerful.
We’ll go ahead and wrap it up there I want to take this time to thank both Henry and Mike for their presentations they were excellent and I want to thank everybody for being here and we’ll see you next time.