Learn how to best divide sales so you can conquer the market with Xactly expert Erik Charles. Review different roles, when you need them and how to reward them so they are motivated to improve your bottom line.
Incent right. Sell more. That simple principal is at the core of everything we do at Xactly.
Set Territories based on zip codes, area codes, named accounts, vertical markets, company size)Check industry databases to ensure that there are enough opportunities in each territory.Not everyone makes quota, so don’t make the sum of quota your annual goal!If everyone is at quota, how much will the company payout in total commissions?
You can set goals for anything that you measure:Units sold Revenue dollarsNew customersProfits. If you track multiple metrics make one the primary measure.
If the entire team hits quota, what is the Captain’s performance toward goal?If the Captain hits their goal, where is the company against plan?Captains will usually assign higher numbers downstream in case of a rep not performing.Are there open positions in the Captain’s team? How does the Captain’s quota reflect open positions, new reps and experienced reps?
Make sure you know what line items in a transaction reflect the appropriate renewal and up-sell revenue the Farmer owns.Don’t assign quota based on things the Farmer does not control.What periods should you track? If all of your renewals are at year-end, a monthly quota does not make sense. Try annual quotas instead.How much will the Farmer make if the renewal rate stays the same?Is there room for customer abuse?WARNING!Calculate total payouts as a percent of total renewals at different renewal levels, make sure that the payments you will make to the Farmer are worth the revenue and profits you will gain.
Are you measuring lead quality?Is your CRM set-up to handle passing leads to the appropriate reps and tracking what happens?Check:What has lead flow been in the past?Do you have the right environment for aprospector to find new opportunities?How many qualified leads are needed to become a closed opportunity? How long does it take?Do your prospectors develop their own lists or is marketing providing assistance?Is the plan incenting the prospector to deliver the right types of leads?Check the relationships between prospectors and sales reps, and watch to see how many they can support.How much of the closed revenue do you want to pay to ensure that only good leads are passed?
How technical is your product vs. your potential buyer?Is it a difficult demo?Is the concept you are selling a new one to prospective customers?Will the support person need to respond to competitive claims during demos?The complexity of the product will increase a specialist’s percent of salary consisting of variable pay.Quota = combined quotas of supported team membersReward for other specialist’s activity, like fairly supporting sales staff, helping move new products, etc.
Sales Webinar | Hunters, Farmers and Comp Plan Design
Hunters, Farmers andComp Plan DesignErik Charles | Senior Manager, Product MarketingXactly CorporationWill Wiegler | Chief Marketing OfficerThe TAS Group