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Sales Performance Management

The need to incentivize strong customer relationship management

By February 6, 2018January 16th, 2023No Comments

Salespeople understand the need to forge lasting connections with clients, but their incentive plan may not provide the positive feedback necessary to encourage this type of relationship building. That’s particularly valuable in fields that experience extremely long lead times for sales of complex products. A salesperson might spend several months working to make a single deal, and this may not be properly accounted for using some traditional compensation plans.

Companies that sell products on an elongated sales cycle should consider adjusting their compensation program so it includes provisions for work in the organization’s customer relationship management system. This type of work can result in large sales wins down the line because it encourages salespeople’s long-tail sales efforts.

Complete integration
According to research group Aberdeen, best in class sales organizations incorporate a collaborative approach to CRM usage that encourages salespeople to keep detailed records of customer information and rewards collaborative efforts. This is in contrast to the siloed approach that encourages individual salespeople to be fiercely protective of their personal leads.

“A CRM can reward collaborative efforts.”

By placing all of a company’s information about leads and in-process sales within a CRM, the organization can improve efficiency and eliminate time spent creating one-off solutions for specific customers. The entire organization’s knowledge base can be contained in a single space, which makes it easier for people to collaborate and cuts down time spent communicating between departments.

How compensation fits in
With the knowledge of how important CRM solutions are to a company’s overall performance, sales managers need to encourage employee participation. Additionally, a strong compensation management solution can act alongside a CRM and offer immediate feedback on employee’s progress toward specific sales goals. That’s particularly valuable when a project involves sales that have an exceptionally long lead time, because it allows managers to give employees some amount of credit for their efforts before a sale is finalized.

According to research from Tech Target, this type of integration allows companies to identify trends in sales performance more easily, and makes it simple to pick out certain buying patterns from specific types of clients.

Iconixx can work alongside a CRM to give employees in-depth updates regarding their progress through complex compensation plans. That has the potential to improve individual employee motivation and increase a sales team’s ability to hit quota.

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Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

KBH Ventures

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.