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Mingle Monday on Sales Compensation and Activity metrics

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Looking for ways to continuously improve your sales performance raises important questions. How can I overcome the pain or complexity in sales compensation management? How can I ensure my sales focus on the relevant activities? Where does my organization stand versus the best-in-class when it comes to sales compensation?

Get solutions and learn from the most performing organizations in sales compensation at our next Mingle Monday. We will review together:
- The results of the 2015 compensation study
- The compensation plan design objectives
- The management behaviours impacted by sales plan and their ability to perform sales management activities
- The challenges when rolling out compensation plans and how to set individual sales person quota’s

Published in: Sales

Mingle Monday on Sales Compensation and Activity metrics

  1. 1. 1 Mingle Monday Event June 20th, 2016 Sales Activity, Metrics and Compensation
  2. 2. AGENDA 2 • Welcome and introductions • Managing Sales Activities, Metrics, Compensation - Best Practices • Exercise: Barriers & Drivers • Recap
  3. 3. Our Focus is on Driving Your Business Growth 3 MARKETING Define, develop, communicate and deliver offerings that have value for your customers SALES Boosting commercial performance enabling you to find, win and retain customers TRANSFORMATION Building organizational focus, capabilities and the necessary change to win more in the market
  4. 4. We Mind Your Business 4 Build skills and capabilities Find growth opportunities Set 2020 agenda Coach sales team Capture more value Need extra resources for a while Boost performance Need clear plans Improve commercial processes Need more leads Need help on programs or projects Align teams and plans Manage sales funnel betterGet value from Social Optimize profitability Redefine organisation and roles Improve customer management Make customer experience work Adopt CRM
  5. 5. We Mind Your Business 5 INTERIM SERVICES Specialist marketing and sales resources to fill organizational gaps CONSULTING SERVICES Experts to define stragegy or manage projects/programs TRAINING COACHING Trainers or advisors to build capabilities of people and teams EXPERT RESOURCING ACADEMYCONSULTING
  6. 6. Opportunistic • Mission/Vision • Business Strategy • Commercial Planning • Sales & Marketing Alignment • Organisation Design • Change Leadership • Sales Process • Account Management • Sales Management • Social Selling Strategy & Transformation Marketing (7P‘s) Performance Sales Performance EXPERT RESOURCING Through our network of Seasoned Professionals Marketing 7 P’s Project Managers Business Managers Interim Management Search & Recruitment In Company Trajectories Public Trainings ACADEMY Annual Marketing & Sales Performance Summit Periodic Events Lectures & Webinars Flexible Service Solutions To Help Drive Growth 6 • Product/Portfolio Mgmt, NPD, Innovation • Promotion, Marcom, Direct Mktg, GTM • Pricing, value based pricing & profitability • Place, Channel, Indirect, Segments • People, Team, Organisation • Process, Customer Focus & Xp, CRM • Physical Environment, Sales/Staff CONSULTING
  7. 7. Nurture Long Term Client Relationships Household Names… Industry Leaders… as well as SME’s & Entrepreneurs… 7
  8. 8. Minds&More Academy 8 ACADEMY
  9. 9. Minds&More Academy 9 ACADEMY
  10. 10. Minds&More Academy 10 ACADEMY
  11. 11. AGENDA 11 • Welcome and introductions • Managing Sales Activities, Metrics, Compensation - Best Practices • Exercise: Barriers & Drivers • Recap
  12. 12. COMMON SALES PERFORMANCE CHALLENGES WE SEE 1. Sales visits, prospection, opportunity management activities not at target levels i.e. Follow-up to lead activity is weak Not executing the relevant sales activities 2. Lack of differentiation between high & low performers 3. Ineffective KPIs and Weak sales management 4. Sales reps too ‘comfortable’ with their income (incentives) and lack drive to get new business 5. Sales community or sales teamwork that is suffering i.e. Sales people turnover i.e. Not enough sharing, not leveraging power of the team 12 Misalignment or missed opportunities to support the business goals and the business strategy
  13. 13. Revenue Customer Satisfaction Market Share Ramp-Up Time IT Investment Training Type Coaching Account Plan Completion Tool Usage Segment of Customer Call Volume Call Type Up/Cross-Selling Number of AccountsTime Allocation Quota Achievement Share-of-Wallet Process Usage Training Investment Skill LevelTerritory Coverage New/Existing CustomersCall Outcomes Customer Retention Deal Size Prospect Type New/Existing Product Pipeline Size METRICS: 306 PIECES OF CHAOS Can we manage this metric? Source: Vantage Point – Cracking Sales Management Code 13
  14. 14. THE FOG STARTS TO CLEAR Revenue Customer Satisfaction Market Share Ramp-Up Time IT Investment Training Type Coaching Account Plan Completion Tool Usage Segment of Customer Call Volume Call Type Up/Cross-Selling Number of AccountsTime Allocation Quota Achievement Share-of-Wallet ProcessUsage Training Investment Skill LevelTerritory Coverage New/Existing CustomersCall Outcomes Customer Retention Deal Size Prospect Type New/Existing Product Pipeline Size Source: Vantage Point – Cracking Sales Management Code 14
  15. 15. THREE TYPES OF METRICS Business Result: A measure of the health (or success) of an organization. Sales Objective: A measure of sales force performance. Sales Activities: A measure of seller action or behavior. Cannot be “managed” Can only be influenced Can be directly managed ALIGN A R O Source: Vantage Point – Cracking Sales Management Code 15
  16. 16. PREVALENCE OF SALES METRICS BY CATEGORY 28% 55% 17% 0% 10% 20% 30% 40% 50% 60% Business Results Sales Objectives Sales Activities Directly Manageable R O A Source: Vantage Point – Cracking Sales Management Code 16
  17. 17. AGENDA 17 • Welcome and introductions • Managing Sales Activities, Metrics, Compensation - Best Practices • Exercise: Barriers & Drivers • Recap
  18. 18. QUESTION FOR YOU 18 For those who changed their sales compensation in recent years - What were the drivers for change? What were the factors you considered when designing a new/different sales compensation? 2 3 Do you have clear metrics per sales activities in your organization? Which ones? 1
  19. 19. QUESTION FOR YOU 19 Do you have clear metrics per sales activities in your organization? Which ones? 1
  20. 20. ENSURE LINK ACTIVITIES TO SUPPORT OBJECTIVES AND RESULTS 20 IT Investment TrainingType Coaching Account Plan Completion Tool Usage Call Volume Number of Accounts CallTypeTime Allocation Process Usage TrainingInvestment Prospect Type Ramp-Up Time Segment of Customer New/ExistingCustomers Share-of-Wallet Skill Level Up/Cross-SellingCallOutcomes Customer Retention Deal Size New/ExistingProduct Revenue Customer Satisfaction Market Share Quota Achievement Pipeline SizeVolume Business Results: Multi-dimensional outcomes that cannot be managed Territory Coverage Sales Objectives: Require consent and can be influenced Sales Activities: Individual decisions that are highly manageable 1
  21. 21. PREVALENCE – METRICS ACTIVITIES 21 8% 6% 13% 23% 51% 0% 10% 20% 30% 40% 50% 60% Making Sales Calls Winning Deals Growing Accounts Mining Territories Enabling Sellers 1
  22. 22. COACHING MODEL 22 E X E C U T E ALIGN Execute the Activities in a management Rhythm, with structured Conversations E X E C U T E A R C Align Results, Objectives, and Activities ALIGN A R O Continually assess performance against the expected Results 1
  23. 23. QUESTION FOR YOU 23 For those who changed their sales compensation in recent years - What were the drivers for change? What were the factors you considered when designing a new/different sales compensation? 2 3 Do you have clear metrics per sales activities in your organization? Which ones? 1
  24. 24. SALES COMPENSATION 24 2
  25. 25. 25Source: 2015 CSO Insights
  26. 26. COMPENSATION • Compensation needs to be designed to drive desired behaviors and aligned with the stage your business is in at the time 1. The customer acquisition plan 2. The customer success and retention plan 3. The sustainable growth plan. 26 2
  27. 27. RESULTS FROM CSO STUDY 27Source: 2015 CSO Insights 2
  28. 28. DRIVERS FOR COMPENSATION / INCENTIVE 28 Company Sales Force Customer When selecting a new incentive compensation plan, review for the impact on each: Source: MHI Group 3
  29. 29. EACH ARE IMPORTANT 29 • Reward • Recognition • Sales • Job Satisfaction • Product satisfaction • Satisfied with salesperson • Future sales • Sales Volume • Profits • Retention of top salespeople Purchasing PowerChooses Activity Establishes Incentive Plan(s) “We made our financial goals” “This company met our needs”, we will buy again! “We made a good income” Company Sales Force Customer Results Source: MHI Group 3
  30. 30. IS THE PROBLEM ALWAYS THE COMPENSATION PLAN? “NO!” 30 3
  31. 31. THE SALES MANAGEMENT SYSTEM Environmental Competitors • Take a close look at your sales force effectiveness drivers before assuming the issue is a compensation issue Sales force effectiveness drivers Salespeople Sales force activities Customer Results Company Results Source: MHI Group 31 3
  32. 32. DIAGNOSING SALES FORCE ISSUES Sales force effectiveness drivers Shapers • Recruiting / Training • Coaching • Culture • Compensation Enlighteners • Customer Research • Target • Data & Tools / CRM System Energizers • Leadership • Compensation • Motivation • Meaningful Work Controllers • Performance Management • Communications – Vertical & Horizontal • Compensation Definers: • Sales Strategy • Go-To-Market Strategy • Sales Force Design Sales Job Drivers Salesperson Drivers Source: MHI Group 32 3
  33. 33. THE “3 C’S” 33 Consistency Carefully evaluate potential incentive plans for the following “before” selecting the best plan Consequences Compatibility Source: MHI Group 3
  34. 34. AGENDA 34 • Welcome and introductions • Managing Sales Activities, Metrics, Compensation - Best Practices • Exercise: Barriers & Drivers • Recap
  35. 35. RECAP 35
  36. 36. MINDS&MORE ACADEMY 36

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