Question
You are a manager for a local newspaper. Your organization offers a 14 days trial period, which is automatically converted into a monthly subscription with
You are a manager for a local newspaper. Your organization offers a 14 days trial period, which is automatically converted into a monthly subscription with tacit renewal unless the customer objects. You notice that all the trial periods starting either on the 31st and 30th of the month have a considerably lower conversion rate to monthly subscription than trials starting in different dates of the month. Your sellers receive each month a fixed bonus of $1,000 if he/she meets the target of 500 new trials per month. Would you want change the employee's incentive scheme?
Answers:
A- No, the current promotion scheme is working if the sellers are earning their bonuses
B- Yes: the prize to meet the target should be decreased, given that sales people are unable to find interested customers at the end of the month
C-Yes: the prize to meet the target should be increased, given that sales people are unable to find interested customers at the end of the month
D-Yes, because the sellers seem to be manipulating their performance measure (they "dump" subscription trials on uninterested customers just to reach their bonus threshold). A better performance measure would be "converted trials"
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