Incentive Program FAQs

Sales and Marketing Management

For example, what caused pain points at the end of the program: reps changing territories mid-program, sales that were booked but not invoiced, clients who made verbal commitments but didn’t sign contracts, field sales managers that vouched for sales that didn’t get logged into the system on time, etc.? Q: Why not use quota as a bar to require reps to pass before they’re eligible to earn in the incentive program?

The Territory Optimization Revolution

OpenSymmetry

A critical element that is relatively new is territory optimization and we will examine the case for this in this article. 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. The territory optimization and alignment element of salesforce effectiveness is vital for three reasons.

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Old-School Territory Management is Dead: A Q&A with John Stewart, CEO of @MapAnything

Smart Selling Tools

Old-School Territory Management is Dead: A Q&A with John Stewart, CEO of MapAnything. Following the recent acquisition of TerrAlign by MapAnything, I asked MapAnything CEO John Stewart to explain the relationship between map-based geo-productivity and territory optimization. What I got was an insight into modern, data-driven territory planning. Q: Why are “intelligent territories” more productive than territories that are solely geographically built?

Sales Incentive Optimization

OpenSymmetry

The Journey to Sales Incentive Optimization. A familiar scenario that salesforces experience is the excitement and optimism of the new sales incentive launch, followed by the realisation that: New rules have been introduced which limit the kind of high payouts experienced last year which made the plan unaffordable. Be more strategic about incentives design, think more broadly about what will motivate and retain salespeople. Sales Incentive Design.

Sales Planning Fundamentals Part Four: Territory Planning

Xactly

In today’s post, I’ll talk about territory planning. Territory planning represents the foundation of sales performance management (SPM). You must have the right territory design in place to accurately allocate quotas. Accurate quota allocation impacts your team’s ability to achieve their anticipated incentive compensation. Is Your Territory Planning Still Stuck in the Dark Ages? Everything starts with territory planning. Sales Planning Territory Design

Calculating the ‘Just Right’ Value for Incentives

Sales and Marketing Management

Author: Tim Houlihan Most incentives are paid out between 3 and 10 percent of the income earned during the incentive period. Matching Incentive to Your Corporate Culture. Track Incentive Results. Smart sales managers rely on good data to make decisions about successes and failures in their territory. The same rigor must be applied to your incentives. How were the incentive-related communications received?

7 Steps to a Quota-Busting Sales Force

Sales Benchmark Index

Article Sales Strategy allocate territories incentive plan lead nurturing maximize selling time quota busting sales quota talent development

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Calculating the ‘Just Right’ Value for Incentives

Sales and Marketing Management

Author: Tim Houlihan Most incentives are paid out between 3 and 10 percent of the income earned during the incentive period. Matching Incentive to Your Corporate Culture. Track Incentive Results. Smart sales managers rely on good data to make decisions about successes and failures in their territory. The same rigor must be applied to your incentives. How were the incentive-related communications received?

5 Steps to a Competitive Sales Incentive Plan

Xactly

Compensation drives sales behavior, which means your sales incentive plan is a critical factor in sales performance and objective achievement. The incentive compensation planning team faces the challenge of balancing executive priorities and designing incentives that motivate reps. However, a strategic sales incentive plan requires ongoing analysis and adjustments throughout the year. Understand what incentive structures have worked and which haven’t.

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. Creating incentive programs that work require balancing multiple design choices. If there is a balance of individual and team work, these incentives can be weighted in different combinations depending on the situation.

The power of incentive programs lies in their structure

Sales and Marketing Management

Author: Tim Houlihan The best incentives have open budgets, meaning anyone who qualifies can win. Here are a few incentive structures to consider for open budgets : Do This Get That – Rewarding reps on every increment of units, sales dollars or gross margin dollars they write up during the incentive period is a great way to increase sales. Any and all improvements should be recognized as incremental, as long as it’s above your estimated results without the incentive.

You’re Done with the Revenue Plan; What’s Next?

Sales Benchmark Index

Article Sales Strategy 2019 adjusting antoine de saint-exupery APAC August budgets ceo client clients comp compensation coverage dilemma coverage model cro decisions EQ expectations goal growth high growth incenting incentive Jim Collins lucius annaeus seneca luck make your number market meeting meetings opportunity planning preparation Q3 quota representative reps research report resource allocation revenue plan robert arnot routes to market sales sbi talent territory tools

How to Optimize Sale Territories for a Strategic Advantage

Xactly

Effective territory design is the basis of strategic sales planning. Balanced territories allow you to set fair quotas, which have a huge impact on your incentive compensation and success of your salesforce. Ultimately, if your sales territories aren’t optimized, you hinder sales reps’ motivation and performance. The Effect of Bad Territory Planning on Sales Performance. The success of your sales strategy relies heavily on well-planned sales territories.

3 Reasons to Drop Manual Sales Territory Planning for Good

Xactly

Sure, you know you need ICM to handle accurate and timely payments, but do you really need automated sales territory planning as well? Although automating technology for territory design can increase your sales up to 20 percent, territory planning is often categorized as a luxury in SPM—instead of as the necessity it is. Integrating automated sales territory planning into your SPM is absolutely imperative in taking full advantage of your sales landscape and selling potential.

Optimal Incentive Compensation Plan Design for Successful Implementation

OpenSymmetry

In the second scenario, the organisation has a strong HR or Sales leader driving the project who wants to look at a simplified process or wants a simplified incentives landscape before they start automating. The organisation may have been through plan redesign already or might have a simple incentives landscape which might just need minor surgery. Finally, 70-80% of companies will have no or at best inflexible technology to support incentives.

Sales Incentives Aren't the Only Motivator. How One Company Got Rid of Them

Hubspot Sales

If set correctly, incentives can have a positive effect on your team's behavior. The commission, bonuses, and sales performance incentive funds (SPIFs) you thought were inspiring your team can become more harmful than helpful if reps put their numbers ahead of their customers, who can feel pressured to buy. The reality is that most companies offer sales incentives — we at HubSpot do, too. Sometimes, no commission or incentive is the best motivator.

When Is a 100 Day Plan Not the Right Next Step After the Deal Closes?

Sales Benchmark Index

Article Corporate Strategy Marketing Strategy Sales Strategy 100 day plan companies doomed from the start due diligence execution fail fast fail slowly failure functional strategies growth ideal make your number Marc Odenweller marketing strategy methodology org design packaging plan pricing Product Strategy purchasing revenue growth sales incentives sales strategy sbi spend time assessing talent territory design timeline

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

Xactly

From territory planning to sales team organization, to sales coaching and leadership strategies to sales compensation planning, each element helps to create a strong sales plan. 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. Customer Stories Incentive CompensationSales planning entails many important factors.

[Webinar Recap] Enhance Your Workforce Culture and Sales Performance through Incentive Compensation

Xactly

In the recent 2018 mid-market sales incentive study, CFO Alliance reviewed the relationship between Sales and Finance departments—and how this partnership can positively impact a company’s revenue potential. Watch the webinar, "How to Enhance Workforce Culture, Employee Retention and Customer Relationships through Incentive Compensation," to see exclusive findings from the CFO Alliance study. Incentive Compensation. Territories must be set intelligently.”

Sales Reps Love Their CRM!

Smart Selling Tools

Look at all of your sales processes: Territory & quota planning. Incentive compensation management. Transform your lead to cash process and accelerate sales performance with incentive optimization, sales coaching, and learning recommendations. Sales reps love their CRM. They love spending hours entering information about the email activity they’ve had with customers, meetings held, proposals delivered, and especially updating their forecast.

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The Criticality of SPM Technology

OpenSymmetry

While, incentive compensation administration is still a main piece, the broader SPM technology concept is expanding more holistically to include other key aspects which directly impacts how a sales team might perform, including talent development, sales enablement, and territory and quota management. In terms of usage, Gartner specifically identify a growth in the use of SPM technology for gamification and territory management, but a big reduction on the use of appraisal solutions.

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Sales Compensation Planning: Everything to Consider in 2019

Xactly

The start of a new year comes with a new sales plan—and that means you must reassess your sales capacity needs , align and balance sales territories , and create a sales incentive plan that drives sales performance. Your sales compensation planning (and resulting sales incentive plan) should consider the different parts of your compensation plan (e.g., How to Develop a Sales Incentive Compensation Plan (with Templates). Incentive Compensation

Guest blog: 10 Success Factors for Quotas Part 2

OpenSymmetry

More specifically, territory opportunity will give you a good indication of what portion of the total goal should be allocated to each territory. If a sales position remains unfilled for a period of time with no one to cover that territory, the over-allocation makes up for some of that loss. Incentive Compensation Sales Performance Management ICM Incentive Comp Incentive Compensation Management quota sales Sales Comp Sales Compensation sales performance management SPM

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How to Setup a Commission Plan in Six Steps

Xactly

Download our "Ultimate Guide to Sales Compensation Planning" for incentive best practices and everything you need for a sales comp plan design project. Formulate your new plan around the successful elements and structure incentives for new goals similarly. Ideally you need a sales incentive planning team of six people. It identifies your capacity needs, quota allocations, and sales territory design. Follow the ABCs of Incentive Planning. Incentive Compensation

Guest blog: 10 Success Factors For Quotas Part 1

OpenSymmetry

One of the easiest ways to set quotas is to divide the big corporate number and allocate it down to the organization in some pro-rata fashion like size of territory or portion of total sales. Incentive Compensation Sales Performance Management ICM Incentive Comp Incentive Compensation Management quota sales Sales Comp Sales Compensation sales performance management SPMSo what makes good quota-setting so challenging?

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Improving the Sales Organization’s Change Readiness

OpenSymmetry

Many companies underestimate the change challenge and respond only tactically with the emphasis being on a quick response to a challenge often seen through rushed amendments to the incentive plan or hiring new people. Required level of change – Understanding the degree of internal change required including sales organization, incentives design, business process change, and some most significantly technology change. Meeting the Change Readiness Challenge.

Five Keys to Accelerated Lead to Money

OpenSymmetry

Territory and Quota Solutions. Incentive Compensation Management. Sales Performance Management Alignment CallidusCloud Configure Price Quota CPQ Forrester Research ICM Incentive Compensation Management L2M L2M Webinar L2RM Laura Roach Lead to Money Lead to Money Webinar Lead to Revenue Lead to Revenue Webinar Marketing Marketing Automation Systems OpenSymmetry Peter O'Neill sales Sales Enablement Territory and Quota Solutions Webinar

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Sales Performance Management 101 for Sales Leaders: Maximising Performance of Your Sales Team Using the Right Technology

OpenSymmetry

These activities include territory and target setting, forecasting, approving commissions and bonuses and query management. SPM technologies like IBM Incentive Compensation Management empower Sales Leaders by providing real time pay for performance information. Sales Leaders have the information to ensure that incentive design rewards the top performers effectively leading to higher retention.

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. Annual Target Incentive. Also, you should consider including a revenue-based bonus structure (read more on the commission vs. bonus debate here ), improved staffing, or well-designed territories.

What is Draw Against Commission in Sales?

Xactly

Depending on your sales force structure and size, there are different sales commission structures that can be used in your incentive plan. It is generally used to get sales reps through times of sales uncertainty, where they may experience decreased cash flow due to inexperience within a particular territory or product as they ramp up. It can also aid in continuous monitoring of current plans to ensure the right sales behaviors are being driven through the incentive plan.

The 12 Step Compensation Plan Design Process

Xactly

You need to start pulling together internal data from your incentive compensation management system, data from your CRM, and finally, information from financial teams on profitability and product revenues. Are you an Xactly Insights customer using empirical data to benchmark your incentive compensation? Looking back at #4, what worked in the incentive plan to drive sales behavior towards the set goals? New territories , quotas, and measures have to be sold TO the reps.

A Forthcoming Shift of Pharmaceutical Sales Compensation Plans?

OpenSymmetry

Tactics may have changed, but for the most part these sales teams still run on a commission or quota based metric determined by well-planned territories. In some cases, incentive compensation (IC) methods have evolved to align with new regulations regarding specific sales metrics. Christopher Bowe, a CEO healthcare industry adviser, suggests the opioid overdose crisis that has impacted prescribers since the 90s may have been the result of a fractured incentive compensation system.

A Forthcoming Shift of Pharmaceutical Sales Compensation Plans?

OpenSymmetry

Tactics may have changed, but for the most part these sales teams still run on a commission or quota based metric determined by well-planned territories. In some cases, incentive compensation (IC) methods have evolved to align with new regulations regarding specific sales metrics. Christopher Bowe, a CEO healthcare industry adviser, suggests the opioid overdose crisis that has impacted prescribers since the 90s may have been the result of a fractured incentive compensation system.

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

OpenSymmetry

Each salesperson is assigned a territory, a quota, and they “go forth and sell”, right? 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. For example, a 90/10 pay mix reflects a base salary equal to 90% of TTCC and a target incentive amount equal to 10% of TTCC.

Sales Compensation Plans Explained: The Ultimate Cheat Sheet (with Videos)

Xactly

Download our "Ultimate Guide to Sales Compensation Planning" for incentive best practices and everything you need for a sales comp plan design project. First and foremost, accurate planning of any kind (territories, compensation, etc.) Download our "Ultimate Guide to Sales Compensation Planning" for incentive best practices and everything you need for a sales comp plan design project. Most companies start off their incentive compensation plans with a single measure: revenue.

Sales Performance Management: Not Your Parent’s Compensation Calculator

OpenSymmetry

We have been ushered through the age of Incentive Compensation Management (ICM) being the buzzword 4 to 5 years ago into an age of where the focus is now on the performance. There are a number of key aspects that are evolving in the SPM world, making operations and processes more efficient: Stand-alone Territory & Quota Management Modules are now being incorporated into systems.

CIOReview Selects OpenSymmetry for 100 Most Promising IBM Solution Providers

OpenSymmetry

OpenSymmetry achieves CIOReview’s top Solution Providers list for its expertise in Incentive Compensation and Sales Compensation Management. The positioning is based on evaluation of OpenSymmetry’s capabilities in Incentive Compensation Management and enabling organizations to make the shift from uncertainty to opportunity as it relates to sales performance results.

Why Automate Sales Compensation Management

OpenSymmetry

Gartner broadened the scope of the definition 3 years ago to encompass all those capabilities relevant to delivering sales strategy including sales talent acquisition and onboarding, sales talent development, sales process, territory and quota management (TQM) and incentive design and administration (ICM). The need to automate territory and quota management will be driven by the dependency of the incentive plan on more complex quota setting and territory alignment challenges.

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

OpenSymmetry

Establish Quotas and Territories to Measure Performance: By defining a territory as a set of accounts within a certain industry and size, you establish which products are sold and how to set quota. 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.

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