That’s the price of the modern, social business. Customers expect to be heard.
Netflix’s decision to increase prices for mail DVD delivery and later move to spin off that service resulted in reams of bad press. By September, Netflix had 600,000 fewer U.S. customers than it had in June 2011.
Yesterday, Netflix recanted its split-up plan, citing member preference as its reason. Stock prices are already on the uptick again. As Guy Kawasaki said he learned from Steve Jobs, changing your mind is a sign of intelligence.
The new interconnectivity allows companies to hear and see – through data on sales and performance – what motivates employees.
Successful businesses use this information to create more effective compensation plans.
New compensation automation and commission tracking applications allow employers to better communicate about performance and expectations to workers through real-time tracking. Sales reps are motivated by access to the same information.
It doesn’t hurt that side benefits can include reducing commission errors by 93% and admin time by 94%.
Targeted motivation and continual feedback encouraged by successful social businesses results in real revenue growth, just as the social connection between customers and businesses can help companies avoid a revolt.
Netflix learned, as can sales managers when they leverage insights into team performance from new applications to find out which compensation plan components are working and which are not.
Today, companies that listen to motivation on both sides – from customers and employees – win.