Two days ago, we pinpointed the five major problems in sales compensation. Now we’re here to tell you how to unlock the sales process and accelerate performance in five simple ways.
Step 1: Re-define the sales process
For too long, we’ve relied on traditional sales processes: contact > lead > opportunity > qualified > negotiations. Today, there’s a better way to go about this. This is because we’ve figured out a way to automate most sales processes with the use of metrics and data analysis. When we look at the sales process through the eyes of our clients, we re-define the sales process for the better. Then, we can easily:
- Recognize need and evaluate options
- Validate solutions
- Grow users and use-cases
The results of re-defining this step are happy clients and warm leads.
Step 2: Reposition role of ‘Sales’
Sales reps need to stop thinking only about making quota. By focusing on the client, you’re on the road to creating a success team responsible for that client’s journey. And that journey includes these 6 elements for customer success-oriented sales organizations:
- Social sales
- Insight sales
- Sales ops
- Success management
- Customer service
Step 3: Compensate on the right ‘Actions’
Many organizations compensate against outdated metrics—like rewarding A, B, and C players unfair amounts—and don’t even know it. Instead of focusing on these, measure the quality of results and actions from your team, such as their ability to recognize clients’ needs, and how successful they are at validating solutions.
Step 4: Compensate on the right ‘Actions’ in a timely manner
Automation virtually eliminates pay errors and speeds up payments from days to weeks or hours. Acme Packet reduced errors by 93% and admin time by 94%.
When you automate your sales compensation, you eliminate all lag time. Sale reps instantly see their potential pay.
More of the sales performance you want
Step 5: Use a variety of ‘Compensation’
Back in November we talked about a psychological experiment called The Candle Problem. The experiment highlighted a mismatch between what science knows and what business does: when cash incentives are offered, it may dull the brain and blocks creativity.
The takeaway here is: you can’t just offer 100% financial compensation. It also has to come with an intrinsic component, like the freedom to work anywhere and pursuit of reps’ own ideas. There’s no such thing as “coin operated sales.” Using a variety of incentives, compensate based on a client’s buying process and reward the team involved the moment they perform with actions that lead to client success.
Want to learn more? Join the conversation @XactlyCorp.