Sales are the lifeblood of any business. As such, having a sales compensation plan that drives the right behaviors and drives sales performance is critical. Failure to do so could result in a serious disconnect between what the sales team is driving toward, and the company’s objectives. So where should you start? Our Sales Comp Planning webinar on Wednesday, July 27 at 10 am PT can help get you on the road to comp planning success. During the session, Robert Blohm, VP of Strategic Services at Xactly, will share industry best practices and exclusive insights organizations need to start preparing, and get their plans off on the right foot. We hope you will join us on Wednesday. Until then, here are a few steps you should consider as you start your planning checklist:
- Get the right people at the table: As someone in sales comp administration, there is nothing worse than getting into a quarter and having people breathing down your neck because they didn't have a clear picture of the compensation plan from the start. That’s why it’s essential that you get the right people at the table when it comes to compensation planning. As sales compensation touches multiple disciplines – including finance, sales, HR and the C-Suite – it’s important to invite them to the party early and get everyone on board. Not only will it save you headaches later, it will also go a long way in terms of creating a plan that meets the larger objectives of the company.
- Look Back to Go Forward: Did your past compensation plan drive the top- and/or bottom-line growth that management was looking for? Did your reps sell the right mix of products and close the longer-term deals necessary to drive sustainable growth? Before planning for the year or quarters ahead, you should analyze by customer, product and territory to identify the growth levers, where plans lagged and where they are excelled. Armed with this information, you can adjust resources and incentives to maximize the impact of your next plan.
- Ensure Your Plans are not too Complex: Did your sales reps “get” their plans, or did they misinterpret what you wanted them to do? Did you spend way to much time explaining plan ins and outs and handling compensation disputes (we can hear your SIGH from here)? If so, find out why and use this information to tweak plans accordingly. Perhaps your plan was too complex and had too many measures (on Wednesday’s Webinar, we will give you key insights on the optimal amount elements that should be in your plan!)
These are just a few of the considerations you should keep in mind heading into comp planning season. Be sure to tune in Wednesday to hear more about what data and other factors should be top of mind to ensure a successful plan design development process. Sign up for our webinar here and happy comp planning!