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Address
304 North Cardinal St.
Dorchester Center, MA 02124
Work Hours
Monday to Friday: 7AM - 7PM
Weekend: 10AM - 5PM
Every year CSO Insights publishes the largest study of sales compensation and trends in the US. The report is 37 pages long. We can learn a lot from it. Below are some of the key points on firms under $50 million:
Wow what a dismal number: a little bit more than half of the Sales Force makes their quota. And that is despite quotas not being increased.
CSO Insights points out that a great deal has changed in sales. Everything from CRM, IT, management, Gamification, etc. and while…
No matter because the report also tells us that BEHAVIORS HAVEN’T CHANGED.
Yeah I guess I could have figured that out since only 56% of people are hitting their number
Hitting the number remains the top priority of all compensation plan. That’s a good thing. That is the reason a Sales Force Exists. However other metrics are used to judge the effectiveness of a compensation plan. Below they are listed in order.
How is it possible that Market Share and Account Penetration rank near the bottom? That means not only are they a low business priority but salespeople are not rewarded for performance in those critical areas!
The same is true for the success of new product introductions. That ranks at the very bottom. So after spending tons of money and resources the majority of Sales Managers don’t care if those new products sell?
Crazy huh!
There are some good ideas on how to improve quota attainment from its failure level of 56%. I’ll blog about that in a later post. However let me SHOUT the starting place:
Align them with business goals. If you’re more concerned with your culture or turn over rate than how effectively you’re selling into your market and your accounts you’ve seriously got you head up your ass. Sorry, but can I be real with you?
Look at the Top Two Priorities:
How would you accomplish either without the very things least important in the majority of Sales Compensation Plans, namely
You simply CAN’T. Fix this. Later we’ll discuss some other findings in this report and implement them.