Last week, you did the hard work of figuring out what works in your incentive compensation plans. You also decided what’s not working. Today, I’ll discuss how to optimize the elements of your incentive compensation strategy that aren’t working, or change them so they work.
Pull up Your Incentive Dashboards
It will instantly show you which sales reps most need your help, and which are the outliers. Then, compare your team’s quota attainment with its incentive plan attainment. If, for example, your team averages at 60% quota attainment and 150% target incentive payout, then you need to rethink your commission plan.
Are you using only metrics that matter?
Some of the most popular sales metrics aren’t actually meaningful or truly actionable. Make sure yours are working by listening to our webinar with Sibson Consulting—Test Your Sales Comp—Is This Thing Working?
Immediately Correct What Needs to be Corrected
Cancel or rewrite what’s not working. Nothing says you can’t make sales compensation plan adjustments throughout year. Don’t wait until it is too late. If you don’t fix what you can now, you may not be at the table when your team writes incentive plans for next year.
The key here is good, clean data. For many, post-sales information is scattered across a variety of systems, including ERP, HR and payroll. But with a single sales compensation management system, you can centralize all of your pre-sales and post-sales data into one place. Many of Xactly’s customers pull this information from as many as 30 places, and everything is still seamless. I look forward to next week, when I’ll discuss how much incentive is too much incentive.