Sales Compensation: Buyer Behaviour and Decision-Making

The procurement function has professionalized more rapidly than the sales profession: They have become the “guardian of the cash” for companies. Sales deals with their client, but must contract with procurement. Pushed into the “price” vice… single sourcing. Terms……45 days    60 days         90 days Penalties for non-performance How do organizations deal with this situation? Does it affect the way that salespeople are selling? How should it affect the compensation of

What Goes into a Sales Comp Strategic Initiative?

Strategic Initiatives are a valuable management tool to initiate and reinforce desired behaviors in sales execution. They are initially administratively burdensome and require some time to polish and refine to ensure that they focus on the correct situations and behaviors. The sales organization will undergo some angst and disharmony until they become accustomed to creating and executing against them. Management will need to communicate clearly the intent and the expectations

paradigm shift

The Impact on Sales Compensation In Sales, Performance & Pay: Sales Compensation for the Future we discussed the changes to the existing sales paradigm. In this follow-up article we’ll consider how these changes have affected sales compensation initiatives. This shift in the sales paradigm has rendered many of the traditional “one-size-fits-all” sales compensation plans useless in the achievement of current and future sales and business goals. In fact, organizations that have plans in

Sales, Performance & Pay: Sales Compensation Trends

Sales Compensation Past, Present and Future Anyone who has “carried a bag” in a sales role over the past several decades will tell you that the world has changed. Selling in the past required an intimate knowledge of the company’s products and services and how to apply them, prospecting and closing skills, personal initiative and good verbal communications. In addition, to be successful, you needed to be able to get

Outsourced Sales Compensation

Outsourcing Your Sales Compensation Part 2: Identifying the “Right” Partner to Implement an Outsourced Sales Compensation Program   In part one of Outsourced Sales Compensation, we discussed the strategic nature of outsourcing the sales compensation program. The “right” sales compensation plan not only initiates and reinforces desired sales behaviour, but is integral in allowing the organization to reach or exceed annual sales goals. Further, when the sales organization maintains an inspirational

Top Salespeople and Creating the Right Environment

Creating the “Right” Environment In an effort to “align” salespeople to the goals and strategies of the company, many companies are developing sales compensation plans that are specific to the sales role and customer/territory situation that the individual is working in. This customized approach works particularly well within a framework that applies a common and consistent mix, target total compensation and measurement criteria relative to each role. In the framework

Sales Comp Strategy Pros and Cons

Strategic Initiatives are not for every organization or for every sales role. They work most effectively when used to ensure that not only do the sales get made, but also they are executed in a particular manner or focused on the appropriate customer. What are the pros for using Strategic Initiatives? Some of the positives for the use of Strategic Initiatives in a sales compensation plan are: Behavioral They support

Strategic Initiatives in Sales Compensation: Factors to Consider

Objectives-based or strategic performance measures in sales compensation attempt to balance the short-term delivery of financial results with longer-term sales growth and increased customer value. Strategic Initiatives (or M.B.O.’s as they were once known), if used properly, have both qualitative and quantitative expectations and outcomes. To determine whether they make sense for your sales organization requires an assessment of their rationale and the pros, cons and requirements necessary to implement

outsourcing sales compensation help

Outsourcing Your Sales Compensation Part 1: Outsourcing as a Cost Cutting Measure or Strategic Initiative? In recent years the practice of outsourcing administrative functions has become increasingly prevalent. In particular, transactional activities that do not add value to the core functions and critical competencies of the enterprise have been targeted for contracting out. Payroll, benefits administration, inventory management, freight and logistics are all tasks often done outside, rather than monopolizing the

Sales Resource Group President Featured in The HR Gazette

The Sales Resource Group’s President, David Johnston, was published this week in Toronto-based HR publication, The HR Gazette. David Johnston’s latest article on sales compensation strategies is called Who Owns the Incentive Compensation Plan? and considers why so many incentive programs have failed to meet expectations, what are the root causes of lack of commitment and ownership by the executives, and how to create sales comp plans that will actually work. Here’s an