Sales Compensation
Sales compensation is at the heart of a successful sales organization. Yet it is astounding how many companies lack a coherent, fair and widely accepted compensation approach for their sales personnel. A plan with continuity, predictability, simplicity of administration, and effectiveness as a motivating tool is key to sales success.
There are many things that sales incentive plans can and must do. The most important is to complement, support and further the company's long and short term goals. With this in mind, a thorough review and evaluation of the manner in which you approach sales compensation can be invaluable. sales consultant's five step approach can quickly and efficiently give you the plan effectiveness you need.
Sales Compensation and Sales consulting's Guiding Principles
Sales compensation plans vary by company, industry and even the type or stage of your sales process. Nevertheless, there are fundamental principals that enlightened sales organization follow to ensure that their plan is a positive motivating force within the company. Sales consultants believes that sales compensation plans should:
Focus on: motivating salespeople to meet both tactical and strategic company goals (profit, growth, market share, revenue, etc.) Exceed or equal the attractiveness of your competitors' plans. Have measurable criteria that are timely, objective and concrete. Be simple enough to administer and understand yet flexible enough to accurate reflect the realities of your business. Be openly communicated to all employees. Be tied to performance evaluation, not just sales results. Value the salespersons' efforts according to their worth to the company. Motivate all salespeople, ranging from "stars" to "poor" performers. Distinguish between performing tasks and achieving results.
What Does Sales Consulting Do?
Following a proven, five step approach, we meet with senior management and proceed to:
Sales compensation is at the heart of a successful sales organization. Yet it is astounding how many companies lack a coherent, fair and widely accepted compensation approach for their sales personnel. A plan with continuity, predictability, simplicity of administration, and effectiveness as a motivating tool is key to sales success.
There are many things that sales incentive plans can and must do. The most important is to complement, support and further the company's long and short term goals. With this in mind, a thorough review and evaluation of the manner in which you approach sales compensation can be invaluable. sales consultant's five step approach can quickly and efficiently give you the plan effectiveness you need.
Sales Compensation and Sales consulting's Guiding Principles
Sales compensation plans vary by company, industry and even the type or stage of your sales process. Nevertheless, there are fundamental principals that enlightened sales organization follow to ensure that their plan is a positive motivating force within the company. Sales consultants believes that sales compensation plans should:
Focus on: motivating salespeople to meet both tactical and strategic company goals (profit, growth, market share, revenue, etc.) Exceed or equal the attractiveness of your competitors' plans. Have measurable criteria that are timely, objective and concrete. Be simple enough to administer and understand yet flexible enough to accurate reflect the realities of your business. Be openly communicated to all employees. Be tied to performance evaluation, not just sales results. Value the salespersons' efforts according to their worth to the company. Motivate all salespeople, ranging from "stars" to "poor" performers. Distinguish between performing tasks and achieving results.
What Does Sales Consulting Do?
Following a proven, five step approach, we meet with senior management and proceed to:
- Form a team of individuals, representing different departments and/or views, to give input to the draft plan.
- Assess the plan(s) currently in effect
- Formulate a new plan for consideration
- Assist in implementing the plan
- Help evaluate the plan
Recent studies indicate that compensation and incentive plans are some of the most disruptive and counterproductive issues in a sales group. Additionally, hiring and then training quality salespeople will only help your organization if you can make sure that you retain them. When a company focuses on sales compensation and takes steps to "do it right", it can serve to:
- Ensure that your corporate goals and objectives are given their proper priority.
- Eliminate internal sales force confusion and frustration.
- Foster sales teamwork throughout your company.
- Prioritize and focus your entire sales effort.
- Increase morale.
- Attract better, more qualified sales candidates.
