5 Tips for Designing Successful Sales Incentive Compensation Plans

Xactly

Few leading indicators are more predictive of a company’s future sales performance than its incentive compensation plans. While multiple factors influence the effectiveness of your sales incentive compensation plans, 5 tips stand out: 1. Incentive Compensation Sales Planning

How to Design a Sales Manager Compensation Plan (With Examples)

Xactly

In fact, the best way to ensure sales managers do their job well is by creating an incentive plan that drives the right behaviors. Download our "Ultimate Guide to Sales Compensation Planning" for incentive best practices and everything you need for a sales comp plan design project.

MBO Examples to Kickstart Your Sales Team Engagement

Xactly

To help, we’ve created MBO examples to get you going in the right direction and help you visualize how goals and objectives might differ by industry and role (Note: the same should apply for compensation and commission plans ), whether it’s in sales, marketing, or manufacturing.

10 Ways To Boost Your Sales Incentive Strategy

Sales and Marketing Management

Author: George Kriza, CEO, MTCPerformance Your organization wants to drive sales with an incentive program. Here are 10 of the most important elements in designing and deploying your next incentive campaign. Are they already in other incentive programs, or is yours the only one they’ll see? Target the right market segments: Decide which sales organizations, geographies and channels will deliver maximum performance for your incentive budget.

Designing Sales Compensation Plans for Sales Managers (With Examples)

Xactly

For reference, here is a sample compensation plan of a Sales Manager role typically used for a Software as a Service company (learn more about the software sales commission plan, here ). Annual Target Incentive.

Optimize Incentive Compensation With Integrated Sales Performance Data

Xactly

Incentive Compensation Management (ICM) solutions help companies manage their sales compensation plans and calculate commission payments. Lack of visibility from siloed software applications ultimately hurt employee productivity, waste IT efforts, and hinder business agility.

Optimal Incentive Compensation Plan Design for Successful Implementation

OpenSymmetry

In the first scenario, the eager software sales rep wants to expedite the project start and does not want to introduce any delays in their sales pipeline. Finally, 70-80% of companies will have no or at best inflexible technology to support incentives.

X-Factor Compensation Leaders: How to Be Incredible at Incentive Planning (Allergan)

Xactly

Those who work to create a plan for their company must develop a compensation process and incentive plan that will motivate the right sales behaviors to achieve goals, all while driving growth. At Xactly, we want to provide an integrated incentive compensation planning process.

End of Year Software Discounts: Savvy Cost Saving or Short-Sighted Business Move?

Sales Hacker

For example, in the reference above, Apple doesn’t technically discount their technology on Cyber Monday. This is an example of a nice incentive to shop that is attractive to a buyer and provides a little extra perk. Beware the bait and switch software”.

Configure Price Quote Software Prevents Order Prevention

Cincom Smart Selling

Configure price quote software makes approving complex sales orders easy and fast. Trust Your Configure Price Quote Software. Are your reps pushing solutions based on incentives and perceived priorities based on inventory or sales performance goals? It Starts with Guided Selling Backed Up by Configure Price Quote Software. For example, you’re not just selling shoes, you are helping people find the shoe that best works for them.

9 Sales Dashboard Examples That'll Help You Set Up Your Own

Hubspot Sales

And sales leaders use these metrics to track progress toward goals, make decisions and plans, adjust compensation, award bonuses and incentives, and identify issues before they become large problems. Sales Dashboard Software Providers. Sales Dashboard Examples.

X-Factor Compensation Leaders: How to Be Incredible at Incentive Planning (Allergen)

Xactly

Those who work to create a plan for their company must develop a compensation process and incentive plan that will motivate the right sales behaviors to achieve goals, all while driving growth. At Xactly, we want to provide an integrated incentive compensation planning process.

Are You Really Asking For The Order?

MTD Sales Training

Sales Person: “Finally, Sarah, we will deliver, install and test the software. The Incentive Close. Another way that sales people can ask for the sale without clearly asking for the sale is to use some incentive in an effort to stimulate the prospect to action. “So

SPM Transforms the Career Path from Admin to Analyst

OpenSymmetry

In this fourth post, we discuss how sales compensation administrators can streamline the incentives management process using SPM technology and in doing that transform their role from an administrative function to a business and analytical function. A key benefit of SPM software is freeing up the time of Sales Compensation Administrators from manually calculating commissions, troubleshooting issues, responding to payment queries and disputes to focusing on higher value activities.

The MBO Bonus – Definition, Tips, and Considerations

Xactly

These bonuses pay employees based on individual tasks and thus, are highly motivating incentives. Download our "Ultimate Guide to Sales Compensation Planning" for incentive best practices and everything you need for a sales comp plan design project. More on MBO examples.

Sales Performance Management 101 for Finance: Know the Cost of Your Investment in Sales

OpenSymmetry

The sales team produces a large body of disparate information which needs to be collected, converted into a suitable format and analysed to build out forecasts and leverage incentive compensation for peak sales performance. Lack of visibility not only leads to poor results from incentive compensation initiatives, but it could cause future financial and legal issues if payments are inaccurate.

How Do You Incentivise SaaS Sales?

OpenSymmetry

Software-as-a-Service (SaaS) is generally thought to be a challenge for incentive plan designers – but is this true – why is it important and what are some of the key considerations in getting the design right? For example, payment up front is more valuable than ‘pay as you go’.

Quota 71

The Relationship between Mixology and Sales Performance Management

OpenSymmetry

The Right Execution – Software Selection, Implementation Planning, Software Deployment, and Change Management. The second aspect is ensuring the right incentive plans and processes are in place. Software won’t solve a poor plan design or set of processes.

3 Key IT Considerations for Sales Performance Management (SPM) Solutions

Xactly

New SPM solutions encompass much more than just incentive compensation management (ICM). For example, sales can benefit from real-time data and mobility, while sales operations benefits from integrated data for benchmarking and intelligent planning.

Data 59

3 Ways Technology Can Streamline Your Sales Performance Management Strategy

Sales and Marketing Management

Instead of spending weeks attempting to understand how many more sales an associate needs to meet his or her quota, advanced technology can deconstruct the process to deliver clear goals and real-time updates, as well as implement incentive programs.

How Can IT Managers Champion Sales Technology?

Cincom Smart Selling

New software changes the way people work, and some will resist that change. As with any proposal, the IT manager will need to choose the software wisely. For instance, if you’re looking for the best CRM software , check to see what your sales team is currently using and what features are lacking. After you have chosen your software, it is time to state your case. This will require communicating what the software does and how it will improve outcomes for users.

Are You Using Your Sales Performance Data Effectively?

Xactly

For example, if you notice that rep performance tends to drop off after they meet quota, you may need to examine if your incentives are truly motivating reps to meet and exceed their targets. Incentives drive behavior.

Data 108

Are Your Prospects Reverse-Sandbagging?

Smart Selling Tools

Financial incentives and personal pleas are two options for changing a buyer’s behavior. I’ll use Echosign as an example. Here are a few examples of how Echosign can help change a buyer’s behavior and help your Reps book business quicker. Product Reviews Sales Effectiveness Sales Management echosign esignatures sales software sales tools sandbaggingSandbagging is when a Rep holds onto signed orders until the last minute.

Selling, CPQ and the Connected Vehicle – “Calling All Cars!”

Cincom Smart Selling

Aviation and space exploration have provided the incentive to develop this technology to ever higher levels of sophistication. The loss of Malaysian Air flight 370 is an example. Smart Selling Configure Price Quote Internet of Things manufacturing software manufacturing technology

Interview with the founder of SellingPower Magazine

Smart Selling Tools

solutions for lead management, proposal and quote management, sales enablement, marketing management, analytics and incentive compensation management. For example, last year we had a number of companies that talked about using five or six different applications in addition to their CRM system. Events Sales Effectiveness Sales Management sales & marketing alignment sales events sales software sales2.0

How to Prevent Turnover on Your Sales Team

Sales and Marketing Management

Software collaboration company Wrike found that American teams pay $160 billion each year to handle employee turnover. Make sure you’re setting a good example. A lot of sales teams have clear-cut incentives: The trick is to put out carrots that somebody — but not everybody — gets.

Low MQLs? 7 Digital Marketing Tricks to Keep Leads Coming Back for More

DiscoverOrg Sales

For those prospects who do show interest – for example, open an email or read a blog post – offer low-commitment CTAs. That’s a powerful way to add incentive to your remarketing campaigns. The first person is probably looking for software to use.

7 ways to create a successful sales team

Nutshell

New techniques are constantly being worked on and optimized; think ringless voicemails, location-based text marketing, and advanced CRM software that automates data entry and time-wasting tasks. Provide Incentives.

A Sales Leader’s Blueprint for 2014

Sales Benchmark Index

An Example— The visual is an example of the Sales Strategy Blueprint. An Example. Steve is a VP of The Americas of a large enterprise software company. Change the compensation plan to incent new logo growth by adding an accelerator. Review it with this example.

Low MQLs? 7 Digital Marketing Tricks to Keep Leads Coming Back for More

DiscoverOrg Sales

For those prospects who do show interest – for example, open an email or read a blog post – offer low-commitment CTAs. That’s a powerful way to add incentive to your remarketing campaigns. The first person is probably looking for software to use.

Sales Planning Fundamentals Part Three: Quota Planning

Xactly

A quota that is 10% too high might translate into no incentive pay at all. Using advanced planning software, such as Xactly Sales Planning, organizations can apply historical performance and product data to simplify quota allocation.

Quota 100

How to Avoid Wasting Money on a Compensation Assessment

Sales Benchmark Index

Here are a few real-life examples of situations where the VP of Sales asked for help from HR: Heavy Equipment Company: The top sales rep earned more than the CEO for 2 of the past 3 years. Software Firm: The annual Employee survey is overflowing with negative comments about the incentive plan. Software Firm: The sales force suffered from role-corruption and weak on-boarding. Incentive compensation is specialized enough that it requires help from a third party expert.

Sales Planning Fundamentals Part Four: Territory Planning

Xactly

Accurate quota allocation impacts your team’s ability to achieve their anticipated incentive compensation. This is a classic example of not leaving money on the table through effective territory design.

Agreeing To Disagree May Work at the Thanksgiving Table, But Not in Business

Sales and Marketing Management

For example, in the classic marketing organization structure, many different people own many different pieces, such as demand programs, PR, content or digital channels or what have you. Match up incentives. So while it’s fair to have some incentive tied to key metrics that marketing people are focused on, in order to support and build alignment, it’s important that the majority of the incentives for marketing be based on revenue. .

Where You Should Invest in Sales to Make the #

Sales Benchmark Index

Perhaps you raised quotas and incentives to get more rep productivity. In the below example, you have sample benchmark numbers indicated in dark blue. A “Mid-Cap” software company’s numbers are in light blue. In this example, the comparison is for a $2.3B

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

Hubspot Sales

This was an epidemic in pre-SaaS software (and still happens, even in SaaS). It reduced the friction to implement software or move to a different vendor if one overpromised.

Churn 80

Commission Accounting: Estimating Amortization with ASC 606

Xactly

Take car sales, for example. Sales incentive strategy isn’t an area of expertise for most accountants, but to comply with the new standard, accounting needs to understand why base and variable pay vary across compensation plans.

New Leads Not Calling You Back?

EyesOnSales

“We follow up on new leads that register for a free trial of our SaaS and I’m having a hard time getting them to call or email me back. I would expect that if the leads were cold but these are warm leads (hand raisers). Are we just getting bad leads?” ” This is a common problem. A lot of sales people think that just because it’s a “warm lead” that its OK to handle the call a little differently (read: SKIP SALES STEPS).

How to Create a Sales Plan: The Ultimate Guide

Hubspot Sales

For example, HubSpot salespeople might primarily sell marketing software to CMOs and sales software to sales directors. For example, you might set a total target of $10 million in annual recurring revenue (ARR). For example, maybe Rep Carol’s January quota is $5,000.

Accounting for Sales Commissions: What You Need to Know

Xactly

In order to view your data in detail, you need automated sales performance management (SPM) software. To do this, be sure that your incentive compensation management (ICM) solution can integrate with any ERP systems or other tools you are using to track sales performance and compensation.