The situationManagement wanted a way to motivate the sales team to grow and maintain existing customers while providing an incentive to bring in new business. They were meeting their compensation (spend rate) plans but falling short of their revenue goals. Sales people were doing what was most comfortable; they worked existing accounts to maintain and grow these valuable accounts but were not bringing in new accounts. In the normal course of business they were losing some of the existing clients and booking few new accounts and as a result their business was flat.
In summary; the sales people had become comfortable and complacent with their compensation plan and were not aligned with the company’s Strategic Business Plan.
The Process1. The sales people were interviewed to test their understanding of the compensation plan and were given an opportunity to provide candid feedback.
2. Sales management was interviewed to test their knowledge of the compensation plan and to measure their level of motivation.
3. Senior management was challenged to clearly identify corporate goals and direction.
4. Sales people were observed during telephonic sales calls and occasionally in front of current and potential clients to evaluate their sales skills.
5. Attended sales team meetings to understand content (training / motivation / direction).
6. Current compensation plans were reviewed with CFO to evaluate how the sales compensation budget elements (salary / commission / bonus) were divided.
7. Key accounts were interviewed to understand how they felt about their provider; frequency of contact, level of service, skills of the sales person, needs being met etc.
2. Motivated sales team with a clear direction; emphasis on retention and new business
3. Compensation costs in line with sales revenues
4. Everyone benefits when company exceeds targets
5. Reduced turnover
6. New clients to build for the future
Copyright © 2014 Dave Neal
Subscribe To Our Blogs
Our Blogs are Authored by various members of the NEALABC team.