Compensation Planning
Create Compensation Plans That Drive Sales and Strategic Goals
Planning
Immediate Benefits
In complex businesses with multiple customer-facing roles, your sales compensation management system must blend a range of quantitative and qualitative incentives.
You’ve set target compensation for your key sales roles and decided the mix between base and variable compensation. Now it’s time to determine the variable pay incentives that will motivate your sales professionals to excel again the company’s most important goals.
In addition to revenue, you may way to reward accomplishments such as new product sales or new customers acquired in a key market segment. And you may opt to add accelerators or multipliers for outstanding performance.
Many Sales and Finance leaders first become interested in sales compensation management (SCM) software because of the striking gains in efficiency and accuracy it brings to the calculation, distribution, and reporting of commissions. Beyond these very real operational benefits, SCM software contributes powerful strategic value to organizations.
Planning
Component of a Sales Representative’s
Sales volume is almost always a major component of a sales representative’s variable compensation. Even so, companies have multiple goals that are vital to their success.
Higher Rate on Services Sales
If the company has invested in professional services talent, the plan may pay a higher rate on services sales.
New product Rollout
For a new product rollout, an additional fixed amount may be paid for each sale that includes the new product, helping to quickly build a reference base.
Sales Development
A Sales Development Rep may receive a monthly bonus for converting a specified number of leads into qualified opportunities.
Flexibility
Limitless Flexibility
Compensation Software
It’s critical that your sales compensation software can handle the myriad types of compensation that you want to incorporate in your plan – to focus your sales team on the company’s marketing and business priorities.
Company’s Business
From the beginning, Iconixx designed its sales compensation software to support any combination of pay components, rules, calculations, aggregations, and sequencing that might be required to align sales with your company’s business strategy and customer engagement model.
Sales Compensation
Iconixx is flexible enough to automate even the most complex and varied sales compensation plans. If you can conceive a plan, Iconixx can automate it — the software is that dynamic.
Common Scenarios
Customize Plans for New Sales Roles
For a new business field rep, the optimal plan might be a 30/70 salary/commission mix, with 75% of commission based on revenue and 25% based on the number of new accounts. For a sales engineer, it may be a 60/40 mix with a commission determination of 50% revenue, 25% demos, and 25% evaluation by sales managers. Iconixx Sales lets you design plans to precisely match the way you want to motivate each role.
Accelerate Compensation to Maximize Results
Establish a tiered rate structure in which commission rate increases after specified quota or sales thresholds are achieved. Tiers can be based on a commission rate metric or a separate metric. Multipliers (e.g. 1.10x) can be used instead of or in combination with tiers.
Balance Sales Priorities with Bonuse
To smooth revenue over the year, add quarterly or monthly attainment bonuses to motivate reps to book business without delay. To advance against qualitative measures, implement MBO or other goal-based bonus. To promote collaboration, introduce a team-based bonus.
Bound Territories to Fit your Sales & Engagement Models
Define sales territories easily and with complete flexibility by any imaginable set of characteristics: geography, named account, and product. Iconixx lets you track whatever your organization demands, whatever matters to you.
“We are pleased to be leveraging the benefits of Iconixx. The Iconixx team has earned our confidence by presenting us with a quality tool to manage our incentive compensation strategy.”
TIM VUOLOVP OF HUMAN RESOURCES, SCHOLASTIC BOOK FAIRS
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