Is margin still a cornerstone of your sales incentive strategy? Here’s why you need to replace it with target price achievement as soon as possible.
Read the full article here: https://thekinigroup.com/sales-incentive-strategy/
Are you rewarding your sales team for their deal margins? You’re making a big mistake.
The first incentive element: volume
Incentivizing on volume makes sense. Reps who sell more should be rewarded.
But if you stick with this single-angle incentive strategy, your margins will quickly go off the rails.
Sales reps will do whatever it takes to sell more, and they will get reckless.
Sales Incentive Element #2: Target Price Achievement
Margins hold your reps responsible for uncontrollable variables.
Incentives based on target price achievement, however, keeps reps from relying on discounts to close deals.
How to Incentivize on Price
Build an incentive formula that takes into account how close to target price the sales rep closes their deals.
Empower sales reps to see their impact on margins with a pricing analytics application.
Leverage your most profitable sales strategies by reviewing your highest-margin customers and how reps close deals for them.
Point Your Sales Reps in the Right Direction
Make sure every sales rep can easily determine the true impactof their pricing decisions with deal analytics.
KiniMetrix can improve your sales incentive strategy and execution. See it in action by viewing a video demo.