Rethinking Sales Incentives

The Pipeline

As part of a series of posts dealing with areas you should consider, better yet reconsider, going in to the New Year, today we look at incentive. No doubt everyone should be thinking about commissions, after all is in effect the cost of revenue.

“Incentives Drive Behavior” Cracking the Code with Predictive Analytics #CALDC3

Smart Selling Tools

Additional revenue can be generated without the participation of a salesperson. CallidusCloud held their Connections conference last week at the Wynn in Las Vegas.

Trending Sources

Does Your Sales Incentive Plan Drive Customers Away?

Sales Benchmark Index

The purpose of every incentive compensation plan is to influence the actions of sales reps. Sales incentives can be like square pegs. Incentive compensation is intended to reward specific behaviors of the sales force. Here are some real-life examples of poorly designed incentives. If asked, the customer would not pay for any of these activities: Margin Incentive. Product Launch Incentive. Customer Satisfaction Incentive.

Cart Abandonment: A Three-Pronged Approach to Recapturing Revenue

Software Business Blog

trillion (US) in combined B2B and B2C online revenue , they also left more than $4 trillion on the table , or, to be exact, in the shopping cart. Mathematician or not, businesses are starting to take advantage of recapturing revenue from abandoned carts.

[Webinar Wrap-Up] Incentive Compensation in Retail: 5 Bottom-Line Benefits


Improving the customer experience by just 10% can yield more than $1 billion in additional revenue. Your organization cannot let a record-breaking retail holiday season go by without maximizing the benefits of incentive compensation to: Motivate sales teams.

How To Boost Revenue by Cross Selling in Your Shopping Cart

Software Business Blog

In the rush to generate revenues and build a customer base, high churn rates and an inability to scale can quickly derail even the best-laid profitability plan. How SaaS companies typically generate new revenue from existing customers is through up- and cross-selling.

Smart Selling Visions: Up-Close with Top Revenue Leader K.V. Rao, CEO of @AvisoInc

Smart Selling Tools

Aviso provides the leading predictive insights software designed to help sales teams optimize their performance and exceed their revenue goals. The customer/revenue lifecycle spans marketing, sales, and customer success.

How to Run a Killer Sales Incentive Contest

Understanding the Sales Force

Also yesterday, in my article on the importance of rallying cries , I promised to discuss incentive programs. Incentive programs are still very powerful as long as you make sure they don''t last for more than 90 days. Just don''t base your contest on revenue.

How To Write Strong Renewal Emails That Boost Revenue

Software Business Blog

According to a 2015 Marketing Cloud’s latest State Of Marketing Report, 20 percent of primary business revenue stem directly from email marketing. Try to narrow down what messaging works best, what time of day yields the most click-throughs, or what incentive was the best motivator.

Smart Selling Visions: Up-Close with Top Revenue Leader Adam Hollander, CEO of @FST_Games

Smart Selling Tools

So by the end of the contest, there’s only a small handful of reps even focused on the incentive (and of course a large portion of your team no longer motivated by it at all). Your top reps are self-motivated and don’t usually need an extra incentive to perform.

Capturing the Yeti: Calculating and Optimizing the ROI of Your Sales Incentive Plan


Much like the elusive yeti, the identification of Return On Investment (ROI) for a sales incentive plan is believed to exist by enthusiasts from the sales compensation design team, but met with much skepticism by others, namely the Finance department. So how do you prove the existence of ROI in your sales incentive plan proposal? So how do you measure the mysterious ROI of a sales incentive plan? Incentive design clearly has a major influence.

Should Marketing Be Compensated On Revenue?


Some have heard me say in interviews and on SLMA Radio that, pound for pound, marketers produce more revenue than anyone in their company. If this is true, and no one has refuted me yet, why isn’t marketing management (and everyone in the marketing department) compensated in some manner on revenue the same way sales people and sales management are paid? Total Revenue. Revenue just from sales leads generated by marketing. We kept coming back to total revenue.

Study Shows Dramatic Growth In Use of Incentives for Employees and Customers

Sales and Marketing

Teaser: A new study conducted by the Incentive Federation confirms that the non-cash incentives market is thriving with 74 percent of U.S. billion annually on incentive travel, merchandise and gift cards. billion annually on incentive travel, merchandise and gift cards.

Game the Plan – With Chris Cabrera

The Pipeline

Almost everyone in sales will tell you that incentives drive behaviour, but beyond that there is often little agreement among the pundits as to what the right incentive plan is. He also discussed that managing activity is the role of management not the incentive plan.

Sales 27

10 Incentive Travel Facts You Can Put To Good Use

Sales and Marketing

The Incentive Research Foundation (IRF), a private not-for-profit foundation that focuses its initiatives on pragmatic research highlighting the premise and the power of incentive and motivational programs, issued a list of 10 incentive travel facts to commemorate Global Meetings Industry Day. firms over $1MM in revenue use incentive travel to motivate their people and partners. firms spend over $14B annually on incentive travel. 

The Strategic Account Manager – How do you Compensate This Critical Role?


We also took a look at pay mix, which splits TTCC into two components: base salary and target incentive amount. Pay mix is expressed as a percentage split, with the first number representing the base salary and second number representing target incentive amount.

The Territory Optimization Revolution


In the same way, salesforce effectiveness is made up of different elements – the right go-to-market strategy, salesforce organisation design, role definition and candidate selection, the right incentive design, and the right sales processes. New Concepts Driving Greater Performance .

Why Is My Sales Team Losing Momentum?


Your sales team is performing well, you are reaching out to new prospects, turning them into new customers and revenue figures are looking healthy. Your Are Offering the Wrong Incentives. Finally, there is the possibility that you are offering the wrong incentives.

The Achilles Heel of CRM Adoption (and 2 Ways to Overcome it)

Smart Selling Tools

The first revenue-numbing fact is that 65% of a sales rep’s time is spent NOT doing what they are ultimately paid for—selling [1]. The more revenue you generate, the more commission dollars you’ll earn.

Five Keys to Accelerated Lead to Money


A Lead to Money process also removes the barriers between Sales and Finance because Finance then has a clear roadmap/understanding into who is being targeted and how sales should be compensated as it relates to meeting revenue goals. Incentive Compensation Management.

Xactly News, 100 Express Customers, Incent 7.1 and Conversation with Xactly’s CEO


However, what I’m the most excited about are the enhancements to Xactly Incent Version 7 which launched a few months ago. Quota and Rate Table Effective Dating: This enables companies to manage incentive program changes at the time and point of need. Xactly Incent 7.1:

Crush Your Number with the Right Compensation Plan

Sales Benchmark Index

Joining us for today’s show is Eric Schwab, a Chief Revenue Officer who knows a thing or two about revenue growth. Today’s topic is incentive compensation planning to hit your revenue goal.

Social Selling and Big Data at the Upcoming Sales & Marketing 2.0 Conference #S20C

Smart Selling Tools

Delivering a Buying Experience That Increases Revenue and Customer Loyalty. Your Crystal Ball: What This Year’s Sales Incentives Tell You about 2013. Delivering a Buying Experience That Increases Revenue and Customer Loyalty.

The Evolution of Commerce Automation in B2BNation Interview

Software Business Blog

In this episode he shares his thoughts on the past, present, and future of commerce automation as well as revenue leakage and how to turn that into revenue uplift. If you talk to the marketing guys they will overemphasize the customer experience part versus the revenues.

Sales Leaders – You Get What You Ask For – Sales eXchange 237

The Pipeline

I think one reason is the message many sales leaders send their teams, and their peers in the revenue generation process. One obvious factor and lever is incentive. Sales Incentives Sales Process Sales Success Selling to Executives Tibor Shanto

Do “Refer a Friend” Programs Actually Work? Absolutely! Sometimes.

No More Cold Calling

B2C incentives work like magic. But in the B2B world, incenting people to provide referrals isn’t the no-brainer sales strategy that it is for consumer-facing companies. Should You Give Incentives for Customer Referrals? What About Incenting Salespeople? Incent or not.

OpenSymmetry Named in the First-Ever Inc. Best Workplaces Awards


The minimum revenue required for 2015 is $2 million, in business at least three years, with full time employees count ranging between 5 and 500. Magazine Incentive Compensation Management sales performance management SPMMagazine Introduces the Inc. Best Workplaces Awards.

5 Key Issues with Sales Force Engagement & Motivation – It’s more than a Plan Design Issue


The sales incentive program ownership can reside with HR, Sales, Finance or a combination of these groups. We also see many organizations instituting a ‘one company’ culture change project as a way of driving revenue growth or profitability.

The Best Sales Tools to Skyrocket Your Revenue


Improving revenue growth is an important part of the job for everyone in business. This is especially true for small businesses where having the best sales tools can help skyrocket your revenue. As you can see, there are several areas to consider when boosting your company’s revenue.

How Do You Incentivise SaaS Sales?


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? Actual billed revenue is the most common approach.

Quota 28

The Relationship between Mixology and Sales Performance Management


The second aspect is ensuring the right incentive plans and processes are in place. This aspect includes making sure incentive plan design effectively aligns business strategy and seller motivation, optimizing processes and workflows.

3 Steps and 7 Tips to Turn Your Software Products into Subscriptions

Software Business Blog

Basically, the company saw a decrease in revenues in the short term, but current signs lead to a good prognosis on medium and long-term revenues. More predictable source of revenue for owners. So how can you take advantage of a subscription revenue model for your company? How have subscriptions affected their revenues (very easy to discover if they’re public companies)? I recently read an article on how shifting to subscriptions has affected Adobe products.

The Art Of Cross-Selling: What You Need To Know To Grow Your Online Business

Software Business Blog

A strategic approach to cross-selling can add significantly to each sale value and sustain increased revenue generation over time. Offer an incentive for customers to add complementary products by offering a discount.

[Webinar wrap-up] 5 Keys to Accelerated Lead to Money


Incentive Comp: Develop incentive programs that drive behaviors and revenue that lead to more closed deals while reducing errors in payouts. All of this needs to be linked by a targeted incentive regime that drives it all together.

B2B 9

Percent of Revenue Spent on Sales Incentives?


I recently wrote about a Callidus press release claiming that Telcos in EMEA typically spent 10% of their revenue on incentive compensation. Keep in mind that this survey was for small businesses, but the majority of respondents spend 5-10% of their revenues on sales incentives.

Conversion Contest – Announce the Winner

Software Business Blog

We enjoy learning about our journey towards maximizing revenue and customer lifetime value. We viewed recurring billing as a means to increase our customers’ lifespan and in turn this would net more revenue.

Sales Alignment with Company Strategy Part-1


Among other things, they do this through two core performance management practices: sales compensation incentives and performance reviews. Notice the message here: “go forth and multiply” because any customer is a good customer with this incentive plan.

ASC 606: The Impact on Sales Commission Part 2 of 2


In my previous blog on the ASC 606: Revenue Recognition topic from the Financial Accounting Standards Board (FASB), I provided some background to the new regulation and covered some potential impacts to those in sales comp and sales ops-related roles. We’ll examine the action items to consider to ensure you aren’t caught off guard if your internal accounting teams require more detailed compensation-related data from your team to remain compliant to these new revenue recognition rules.

Is Your Compensation Plan Driving Sales to the Wrong Finish Line?


Companies must make these types of Sales Enablement investments to remain competitive and meet revenue expectations. Uncategorized Commission ICM Incentive Compensation Incentive Compensation Management Plan Design sales performance management“Moving the needle” in terms of overall sales force performance is no mean feat.

Lead Generation: How Do You Balance Quantity with Quality?

Modern B2B Sales

It fills your pipeline, creating a steady revenue stream. In the end that will waste sales executives’ time, force the company to pay out when it isn’t receiving revenue and drag down the sales process.