Service portfolio extensions and sales incentives: an examination of financial value-added services provided by logistics service providers

Abstract

Logistics service providers (LSPs) can add value to their clients by providing financial value-added services (FVAS). However, LSPs might encounter challenges when offering such FVAS, as the latter demand a different set of competencies that affect sales teams' qualifications and motivation. Against this background, we explore how LSPs' sales teams can be incentivised to support service portfolio extensions in the form of FVAS. The research methodology applied in this study follows a qualitative approach and includes 34 expert interviews. We find that most LSPs address incentive problems by adjusting sales teams' qualifications. Expert support, training and tools are common methods to incentivise sales teams that lack specific expertise. For stimulating motivation, awareness creation through data or personal engagement and monetary incentives are most relevant. LSPs can use the insights from this paper to identify the impact of portfolio extensions on the motivation and qualification of their sales personnel and implement adequate incentive systems.