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2 essential sales compensation program tips to live by

By April 12, 2013June 11th, 2024No Comments

When faced with dipping sales numbers and unproductive and unmotivated employees, businesses aren’t to blame when they don’t know where to turn to right the ship. In fact, a recent survey by Salesforce found 55 percent of responding organizations say sales team members don’t reach their quota and 65 percent stop trying after hearing a “no” for a second time. However, firms in such a state of sales team disarray can take a page from other businesses’ books and implement a sales compensation program that can provide just the incentive sales pros need to hit the pavement running. Just remember there two cardinal rules to a successful performance-based bonus structure: Always align incentives with business goals Incentives with no direction or relevancy to what the business is attempting to accomplish are a disservice to both the employee and the employer by becoming too cost-inefficient and not providing enough guidance for team members. As such, businesses should keep in mind that it’s critical to sync their incentives with stated goals and objectives. For example, a new service launch can be accompanied by a contest to reward the individual for pushing the most sales through on a desired offering. There are options outside monetary compensation Companies that can’t afford to constantly dish out cash payments through their sales compensation software should investigate incorporating other classes of incentives into their program. For instance, experience-based incentives can accomplish the same things as monetary bonuses, like improving employee engagement. Through offering a vacation getaway or tickets to a sporting event, firms can forge personable relationships with reps while still providing a valuable incentive to generate better performance. Regardless of whatever strategy organizations choose to power their performance programs, they can save money and streamline operations by investing in sales compensation software.

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