Companies fiddle constantly with their incentive plans and sales executives are always looking for ingenious ways to motivate their teams. If sales targets are missed, they blame the sales compensation plan and start over. Meanwhile, The finance organization views the comp plan as an expense to manage. That’s not
surprising: Sales force compensation represents the single largest marketing
investment for most B2B companies. So naturally finance tries to ensure that comp
plans have cost-control measures designed into them. Additionally, many companies
respond to cost-cutting pressure from the finance department with incentives that
backfire. More often than not, controls encourage salespeople to spend time with
customers according to the company’s internal needs, rather than when the customer
is ready to buy.
Companies have become savvy customers; they have often determined the solution and the supplier they need, and the price they are willing to pay, before the salesperson enters the scene. In this competitive environment, the premium on finding, training, motivating and retaining star performers has never been higher.
Because firms only measure past sales performance, they have limited insight into how a salesperson will do going forward and what types of training and incentives
will be most effective. Failing to forecast a salesperson’s future value can lead to costly misallocation of training and incentive dollars. Many firms overvalue their poor performers and undervalue their stars, which might lead to undervalued top salespeople to slip trough their fingers and into competitors’ arms. This article illustrates a novel method for measuring a salesperson’s future profitability to the firm. Future performance is linked to specific types of training and incentives and show how those investments can dramatically boost revenue.
This is the world of the sales machine, built to outsell less focused, less disciplined competitors through brute efficiency and world-class tools and training. Recently
sales has been caught off guard by dramatic changes in customers’ buying behavior and sales performance has grown increasingly erratic. The very approaches that made the sales machine so effective now make selling harder. The sales machine is stalling. Leaders must abandon their fixation on process compliance and embrace a flexible approach to selling driven by sales reps’ reliance on insight and judgment.
Companies fiddle constantly with their incentive plans and sales executives are always looking for ingenious ways to motivate their teams. If sales targets are missed, they blame the sales compensation plan and start over. Meanwhile, The finance organization views the comp plan as an expense to manage. That’s not
surprising: Sales force compensation represents the single largest marketing
investment for most B2B companies. So naturally finance tries to ensure that comp
plans have cost-control measures designed into them. Additionally, many companies
respond to cost-cutting pressure from the finance department with incentives that
backfire. More often than not, controls encourage salespeople to spend time with
customers according to the company’s internal needs, rather than when the customer
is ready to buy.
Companies have become savvy customers; they have often determined the solution and the supplier they need, and the price they are willing to pay, before the salesperson enters the scene. In this competitive environment, the premium on finding, training, motivating and retaining star performers has never been higher.
Because firms only measure past sales performance, they have limited insight into how a salesperson will do going forward and what types of training and incentives
will be most effective. Failing to forecast a salesperson’s future value can lead to costly misallocation of training and incentive dollars. Many firms overvalue their poor performers and undervalue their stars, which might lead to undervalued top salespeople to slip trough their fingers and into competitors’ arms. This article illustrates a novel method for measuring a salesperson’s future profitability to the firm. Future performance is linked to specific types of training and incentives and show how those investments can dramatically boost revenue.
This is the world of the sales machine, built to outsell less focused, less disciplined competitors through brute efficiency and world-class tools and training. Recently
sales has been caught off guard by dramatic changes in customers’ buying behavior and sales performance has grown increasingly erratic. The very approaches that made the sales machine so effective now make selling harder. The sales machine is stalling. Leaders must abandon their fixation on process compliance and embrace a flexible approach to selling driven by sales reps’ reliance on insight and judgment.