Sales Compensation Plan Design
Sales compensation Plan drives the sales team’s performance. It includes details about all aspects of a salesperson’s earnings such as their base salary, commission, and any incentives or benefits they may be eligible for.
Our Plan Design Approach
Spectrumtek offers sales compensation plan design services to ensure that sales behavior is well aligned with corporate strategy, drive the growth and minimize the cost of sales. With our deep experience in automating sales compensation programs, we also take into consideration customer’s IT landscape and the strengths and limitations of SPM systems. Conducting industry research, executive interviews, and building exhaustive compensation models is key to our success.
Sales alignment is potentially the largest opportunity for improving business performance today. When sales teams unite around a common corporate goal, they dramatically improve sales productivity, and, most importantly, long term top-line growth.
Transparency and fairness are key to a successful compensation plan. Salespeople are motivated by money. If the plan feels unfair, reps will become demotivated and eventually leave the company
No sales force consists entirely of stars; sales staffs are made up mainly of solid performers, with smaller groups of laggards and rainmakers. The plan design must model the incentive payout for each group as per forecasted performance.
Make the plan a “win-win” for the company and the salesperson. Incent desired salesperson behavior. The plan design has to offer motivational levers that are well aligned with corporate strategy and the specific role.
Easy to Understand
Your sales personnel are not rocket scientists! The most common reason for sales compensation plan to fail is that the sales team does not understand the plan’s complex logic. If the plan has to be complex, it helps to provide a modelling tool with What-If analysis.
Even the best of the compensation plan can be rendered ineffective, if the underlying business processes and IT systems, including the SPM tool in place are unable to support it. Plan design has to be done in conjunction with the IT and Business Processes landscape.
Spectrumtek is a global leader in Corporate and Sales Performance Management (SPM) Services. We strive to become the trusted partner for our customers on all things related to SPM. Our team is composed of a highly skilled team of professionals who are 100% dedicated to SPM. Read More
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Vashi, Navi Mumbai