It’s mid-year and very few things look the same as they did at the beginning of the year.
When we surveyed sales leaders in April, 83% said that they would be resetting comp due to the current environment's impact on business. But most didn't know where to start, so we created this guide on how to reset comp plans to drive performance.
Here are six tips to help you adjust your sales compensation strategy, motivate your salespeople, increase their earnings, and drive company growth. And the best part is, this is all based on plans that actually work- companies with many of these elements in place, reported 30% higher performance!
Don’t wait until the end of the month or quarter to give reps their statements. Faster feedback improves performance.
Even companies with six-figure average sales prices had higher performance scores with shorter quota periods.
If the rep isn’t responsible for following up with customers to collect the payment, don’t pay on cash collection. Pay on the activity that earned the commission.
Low, core, and star performers all do better with targets that break down big goals.
Give a flat-rate incentive for negotiated terms such as upfront billing, multi-year term, or new product attachment.
Pay on Process
Pay on behavior metrics such as pipeline generation, outbound activities, customer interactions, etc.
If you’re reading this and wondering how you will make all of those changes, the good news is that even one or two of these changes will significantly move the needle. Connect with us for a free demo to get tips on how to implement these tactics.