3 Ways to Cut Churn and Increase Sales Motivation While You Scale

Hubspot Sales

By paying over time, software companies are incented to keep customers happy, rather than extract as much money upfront as possible. While your second rep’s customers are miserable, complaining and churning out. Churn and retention are the best indicators of customer lifetime, but they take too long to tie to your sales comp. It provides little incentive for your top performers to push harder and doesn’t provide them a clear path to getting to the next level.

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Wells Fargo: The True Cost of “Unchecked Incentives”

OpenSymmetry

Richard Cordray, director of the Consumer Financial Protection Bureau, suggests “unchecked incentives” were the root cause of the fraudulent accounts, further elaborating, “Incentive compensation structures are common in businesses and they can motivate positive behavior. What kind of behavior do current incentive compensation plans promote? How do you monitor churn rate? The post Wells Fargo: The True Cost of “Unchecked Incentives” appeared first on OS Blog.

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5 Tips To Minimize “Churn and Burn” Behavior in Your Sales Team

SaaStr - Sales Strategy

As you scale your salesteam, unless you are very careful whom you hire and how you train them, incentives being what they are in variable compensation, some negative behavior will creep in. Many call it “Churn and Burn” or other variants. Your brand and reputation is damaged at least a tiny bit everytime a paying customer churns out because they were mis-sold a feature set. Clawback sales commission for customers that churn quickly.

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SaaS sales: How to sell annual contracts [phone scripts and email templates]

Close.io

But you as a SaaS business want to sign them up for annual deals when possible since that's going to increase cashflow and predictability and decrease your churn. Because you want to understand churn first and see how long people stick around by choice. In their MRR churn study, Price Intelligently found that SaaS companies. without annual contracts had a 9% churn rate, with up to 25% of customers on an annual plan had a 7.5% churn rate.

Your Quotas are Awful: How to Improve Sales Performance with Comp Plan Design

Xactly

Really, the focus should be on how you can improve sales performance with well-designed incentive plans. ” VP Finance: “Reps want to earn incentives monthly so you need to have monthly quotas which are less accurate. The reality is that sales incentive plan (SIP) design should be a collaborative effort and need to take into account quota setting accuracy. of Target Incentive Paid for Each 1% of Quota Achievement. and 3 times their target incentive.

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Why a Customer-First Approach Is Essential for Company Growth

Velocify

The Sales Incentive for Prioritizing Customer Needs. This strategy may give an illusion of success in the short-term but it’s likely to come back to bite them later as contracts expire and churn rates go up. CRM Sales Sales Automation Technology churn rate customer Customer Success customer-first growth Inside sales sales sales process sales strategy sales success

Guest Blog: The Secret World of Shadow Accounting and How to Eliminate It

OpenSymmetry

Sales people can spend more time on sales, comp plan managers can shift into more strategic roles, and there’s less organizational conflict, which leads to less churn and more dollars in the company coffers. Sales Performance Management CallidusCloud Commission Incentive Compensation Sales Comp Sales Compensation Shadow Accounting spreadsheetsWhen you offer people variable pay – like commissions – you’re engaging in a trust exercise.

Cloning Top Performers

Sales and Marketing Management

Author: Theresa Thomas, VP Strategic Solutions, Hinda Incentives Have you ever daydreamed about cloning your top sales performers? If only you could just start churning out clones of those top performers tomorrow, you’d never worry about making your sales goal again. Visit, www.hinda.com to find out about engaging, inspiring and rewarding incentive programs, and look for upcoming articles on more ways to replicate top-performer behaviors coming soon

How to Find the Right Sales Compensation Plan for Your Sales Team

Chorus.ai

Creating the perfect incentive compensation package for your team is no simple feat. How internally competitive are your incentives (i.e., the difference in incentives offered to the lowest-performing sales rep compared with those offered to the highest)? How competitive is your incentive compensation compared with the norm in your industry? Your incentive plan needs to be effective and inspirational to keep a top-performing sales organization motivated.

Improving the Post-Sale B2B SaaS Customer Experience

Sales and Marketing Management

Let’s take a closer look at the challenges in the B2B SaaS customer experience and how to tackle these potential barriers upfront rather than trying to do damage control months into the implementation, when the customer is annoyed, disappointed and on the path to churn.

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How to Build Effective Sales Compensation Plans for Any Customer Facing Role

Sales Hacker

Know what to Include in a Sales Incentive Plan. This is what the person would be paid annually and it has two elements; a base salary and a sales incentive held against sales, also known as variable pay. NOTE: We recommend refraining from calling any sales incentives a bonus. A compensation plan (or incentive plan) is just that: a plan. Clawbacks can also be used against deals that churn within three months of purchase when the commission was already paid.

7 People In 10 Years!

Partners in Excellence

This amount of churn over this period of time (whether the churn was voluntary or involuntary) is an indication that management doesn’t know what they are doing. Management has to create the right culture, set the right example, put the right incentives in place. Maybe management doesn’t respect their people, they create a “churn and burn” environment. Churn, voluntary or involuntary, is a critical measurement for management.

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Why Sales Leaders Need to Focus on Double Click Metrics (DCMs) to Measure and Improve Performance

Cience

This metric is also used to pay out incentives to sales reps based on their individual or team quota achievement. <double If you have fewer clients, the risk is higher with churn than having a larger client base.

Urban Legends Debunked: Perfect Business Partners Do Exist.

Allbound

If the partners you do recruit aren’t the ideal fit, they are likely to churn. In fact, partners churn about 10% of their vendors per year. In addition to referral commission, helping your partners feel well educated and prepared to have conversations with your customers is a huge incentive. For many, it seems that finding your perfect partner can be a real challenge.

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Improving the Post-Sale B2B SaaS Customer Experience

Sales and Marketing Management

In this article, I will discuss the challenges in the B2B SaaS customer experience and how to tackle these potential barriers upfront – rather than trying to do damage control months into the implementation when the customer is annoyed, disappointed, and on the path to churn. Create programs that are a win-win for your company and customers through incentives for active participation, such as early access to beta programs or invitations to customer advisory boards. .

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How to Get Your Sales Team to Actually Use CRM Software

Hubspot Sales

So you need to sell CRM software to your team — otherwise, they’ll behave like customers who churn. Offer an incentive for CRM usage. You’ve decided you need customer relationship management (CRM) software.

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8 Steps to Setting Smarter Sales Goals

Hubspot Sales

The incentive for your reps to meet their quota? So what’s the incentive for meeting these smaller goals? Don’t have the budget to offer monetary incentive? Provide an incentive that’s only awarded when everyone meets the goal. If your reps are easily closing new business, but that business churns three months in, that’s not good. Sales Goals. Monthly sales goals. Waterfall goals. Sequence goals. Activity goals. Incentivized goals. Goal progression.

5 Things Your Sales Reps Are Complaining About

Sales and Marketing Management

That, in turn, leads to greater sales rep churn. Sales has a lot of incentive to bring in revenue, but they need the right tools to do it efficiently and effectively. Author: Giles House Whether it be too many emails or not enough snacks in the kitchen, everyone has a set of pet peeves in the workplace. Salespeople, as a profession, are certainly not immune.

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SaaS Sales 101: Your Guide to The Perfect SaaS Sales Strategy

Sales Hacker

I like to use Intercom to send an automatic email series over the course of a couple of weeks to everyone who has signed up for a free trial, educating them on ways to use EmailAnalytics and offering them incentives to upgrade to a paid account. Churn. Churn is the rate at which you lose subscribers. If your churn rate is too high , it could be a sign that your product isn’t a good fit, or that your customer retention strategy (or customer service quality) needs improvement.

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Commission Plan Explosions: How to Avoid High Payouts With Collective Underperformance

Xactly

Every leader within an organization has heard of the sales ops and finance nightmare–you’re making high sales incentive compensation payouts, but as a whole, the company misses its sales targets and goals. So what happens if the sales incentive plans blow up? Surprisingly, the most common way for a sales incentive plan to “blow-up” is a slow process that occurs over a long period of time. Lumpy sales infamously make incentive plan payments unpredictable.

Anatomy of a Price Increase: A Nutshell Oral History

Nutshell

KATHERINE MAYS, HEAD OF CUSTOMER EXPERIENCE “I was focused on keeping customer churn to a minimum, which meant preparing the CX team to have conversations with potentially frustrated customers, and identifying which of our Classic customers would benefit from some one-on-one outreach in advance.”. JOE: Realistically, the worst-case scenario in my head for the price increase was major, major churn from Classic customers, like a number that we couldn’t have predicted.

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Free Trials Are Nice, But You’ll Be Broke Without Customers – Here’s 8 Ways To Convert Them.

Sales Hacker

You need to consider everything holistically: website to trial user, trial user to paid plan, active trial users, short-term churn, long-term churn, and more. A high visitor-to-trial CVR ultimately doesn’t mean a thing if you’re not vigorously working to increase the other metrics and decrease churn. You could also try offering a time-sensitive incentive to upgrade before the free trial ends. Free trials are a great marketing tactic. Everyone loves free.

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6 Sales Promotion Ideas to Leverage or Leave

Hubspot Sales

Instead, leverage a healthy incentive focused on time savings or additional services. Because no one wants to land a client by giving a 15% discount, only to have them churn after six months. Sales Promotion Ideas. Leverage Inexpensive Swag at Conferences. Avoid Discounts of More Than 50%. Leverage Time Savings and Additional Services. Avoid Discounting Outside Traditional Guidelines. Leverage Customers Who Are a Good Fit for Your Product/Service.

How Much Should You Invest in Sales and Marketing as a Percentage of Revenue?

Tony Hughes

99% of their revenue is 'recurring' (SaaS) and with less than 1% customer churn. The other point is that we've designed our incentive (commission) plan for our salespeople in a way that creates alignment with the customer and our company. Add to this the fact that they have cured 'the cancer of customer churn' and it's a very impressive operation. Warren Buffett (main picture) is investor extraordinaire and focusses on key metrics that drive profitable growth.

The Beginner’s Guide to Referral Marketing

Zoominfo

Choose the right incentives. Plus, incentives motivate customers, as 50% of people say they’re likely to give a referral if offered a reward ( source ). But, we recommend you give more thought to your referral incentives. Here are some tips to consider: Provide two-sided incentives: While your goal is to motivate customers to provide referrals, you should also incentivize the referred customer to buy your product. Incentives were broken up into tiers.

[Webinar Preview] My Journey From Sales Rep to Compensation Manager

Xactly

As a result, sales activities are misaligned with executive and corporate objectives, distrust brews between sales and finance, productive employees churn, and revenue targets are missed. Looker started out as an Xactly Express customer in 2015, later migrating to Incent in order to keep up with accelerated growth. Compensation is one of the most strategic functions of any sales organization.

Sales Velocity: What It Is & How to Measure It

Hubspot Sales

Never force a product or service on a buyer who doesn’t need it -- that’s a recipe for losing prospects and churning new customers. Discounts aren’t always the answer to increasing revenue, but by offering your prospects incentives to close earlier, you might decrease the length of your sales cycle which can positively affect your sales velocity. Have you been in an interview and asked your prospective employer which sales metrics they value most? That answer is probably, " Yes.

3 Reasons Why Retail Businesses Are Losing Customers

Pipeliner

This means that whether you’re aware of it or not, your retail business is likely experiencing some degree of churn. You must keep introducing fresh solutions and incentives to win over your customers again and again. Customers are one of the base pillars that hold any retail business together. Without them, it crumbles, which is why you must keep them from leaving.

The Secret Tool You Can Use to Close Way More Deals

Hubspot Sales

Once the prospect has invested time in creating a deal plan, they have more incentive to move forward so their work doesn’t go to waste. Your job as a sales rep is to find great prospects who will become great clients, which will reduce churn. I’m a big believer in preparation, so whenever I can, I create a deal plan with my prospect.

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The Importance Of Setbacks

Partners in Excellence

Have you tried to do anything about them……Increasing the pressure, increasing the activities, churning through people… But you’re doing the same things you always have, more intensely………Now that I think about it, Yes…… Will that solve your problem……… Clearly it isn’t… (another moment of honesty). Too often, we get caught up in the rush of everyday life.

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3 Kickass Live Chat Campaigns You Can Create to Drive More Sales

Sales Hacker

Industries with high customer churn can benefit immensely from this collaboration: When customers initiate a chat about canceling their free trial or subscription, you can automate targeted emails (with incentives) to convince them to stay with you. I’m always impressed by the degree of ingenuity that leading sales teams put into their selling strategy.

Building the New Millennial Financial Advisor with Sales Readiness

Mindtickle

To be successful with the next generation, the secret sauce for senior managers like Eric, is finding the right technology and incentives to recruit, train, and nurture current and new financial advisors into exceptional, client-trusted advisors. High failure rates to be sure, churn is common in the classic wealth-management industry.

From SMB to Enterprise: A 2-Step Strategy to Boost Adoption & Growth

Sales Hacker

And those that do often struggle through the transition, leaving behind a churn of leadership and sales resources after every funding milestone. Make sure you align your sales team’s incentives to deliver on that vision. In June, CNBC reported that recently listed cloud software companies were getting crushed for poor sales execution. That’s not hard to believe. Enterprise sales is hard, which is why most businesses start as an SMB org and grow into an enterprise org.

Do you know your employee’s lifetime value?

OpenSymmetry

This means the operator has pricing packages and incentives made available to try to keep you. There would be no steer on whether they are spectacular and need to be offered greater incentives to stay or unspectacular and wouldn’t really be missed if they left. The real reason marketing directors can report customer churn and secure the investment they need to build their CRM systems is because they’ve long built the case for why this information is so critical.

Evaluating sales compensation processes to avoid automated chaos

OpenSymmetry

Considering industries with high churn rates as well, the framework of the comp plan should be flexible enough for new hires to understand and begin operating right out of the gate. In the past, this was built into their spreadsheet system in a very complicated formula and tracked manually, but it was not a necessary piece of the incentive compensation process.

The only kick-ass guide to sales operations you'll ever need

Close.io

This includes generating leads, outlining sales territories, setting up incentive programs, managing sales analytics, and more. Average revenue per user divided by customer churn. And reducing churn makes a big difference. That might mean you need to decrease churn to keep more customers paying you, increase LTV to get more out of each sale, or shorten the sales cycle. Your sales team isn't meeting its potential. It's a hard truth.

Managing and scaling an outbound sales team

PandaDoc

Do they have any long-term incentives that would keep them at their current job? You’re likely on a tight timeline, so it’s important to know if there are bonuses, equity vesting, or other long-term incentives that would keep them from joining until a certain time. There are some red flags to be careful of with outbound sales reps: Lack of respect for the customer: Many outbound sales organizations are high pressure, churn and burn operations – especially in the SMB space.

Holistic revenue performance series IV: Sales operations

Mereo

Honestly, with a solid sales operations foundation in place — along with the other key Blueprint pieces churning in sync with it — there is little stopping your sales teams from achieving their goals and then some. Incentives Salespeople Are Willing to Leave Behind. While incentives are not everything in ensuring your talented salesforce remains with your selling organization, they are, arguably, the major factor.

The difference between a product-led, sales-led & marketing-led approach

Close.io

Give them the right incentives to keep using your product. The name of that problem is churn. According to ProfitWell, “churn strongly correlates with company age.” Statistically, 70% of online businesses fail due to a less than optimal usability. Users expect meaningful experiences that “show and don’t tell,” with the products that they are going to buy. In the last few years, there has been a radical shift in the way people use and buy software.

PODCAST 111: Prospecting and Researching in Today?s Brave New World with Peter Wooster

Sales Hacker

You’re VP of sales now but if this turns out to be what we’re hoping, I’d like you to own all revenue, we’re going to have a big international component of our business, you’re going to own churn and retention for the first time.” But as soon as you have big enough clients, that a churned client would be close to the amount of MRR or ARR that the sales team would bring in in a month, it’s really time to start thinking about a CS leader.