Remove gross-margin
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What Value Are Your Customers Creating For You?

Partners in Excellence

Sometimes we think of retention/renewal revenues, LTV, expansion revenues. And sometimes, in addition to revenue, we may look at gross margins generated by the customer. But we need to look at value creation–and the value we receive from our customers as more than revenue or gross margin.

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The Pros and Cons of Different Sales Compensation Plans

Janek Performance Group

Gross-Margin or Profit-Based Commission A slightly more complicated plan that considers the true profitability of an organization. Salespeople may adopt a more strategic approach to selling, focusing on value propositions, upselling, and cross-selling strategies that enhance profit margins.

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My Fight With ChatGPT, Coaching ChatGPT

Partners in Excellence

I expressed my surprise, I said, as a leader, people management issues, such as performance, development, retention, are critical, why haven’t you identified any people management/leadership metrics? Ever polite, ChatGPT apologized and responded with 15 people management based metrics.

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Sales Compensation: The Ultimate Guide

Hubspot Sales

Increase retention rate. According to RepHunter , 20% to 40% of gross margin (sales minus direct expenses) is standard. That usually boosts retention. Many subscription companies use clawbacks to keep customer retention high. Paying on gross margin. Increase cash flow. Increase average deal size.

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Customer Lifetime Value and Why it Matters

Smooth Sale

Customer Retention Rate. Average Profit Margins per customer. You have to account for all the past transactions that have occurred concerning this customer when calculating this metric: CLV=LT(Customer Lifespan in months)*T(Average Number of Transactions per month)*AOV (Average Order Value)*AGM(Average Gross Margin). .

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Compensation Transformation: 7 Tips for 2024 Sales Comp Planning

The Spiff Blog

Many companies are zeroing in on gross profit margin and other efficiency indicators as they seek to offset previous slowdowns in revenue growth. Recommended reading: 23 Quotes to Guide Your Sales Compensation Planning Process Compensation Transformation Tip #2: Emphasize customer retention and other expansion metrics.

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Stopping Our Metrics Obsession!

Partners in Excellence

Another suggested: Monthly sales growth, Average profit margin, Monthly sales bookings, Sales opportunities, Sales target, Quote to close ratio, Average purchase value, Monthly calls per person, Monthly emails per person, Sales per rep, Product performance, Sales by contact method, Average new deal size, Average new deal sales cycle, Lead to sale (..)