Establishing the Right Incentive Plan is Key for Sales


sales incentive

In a post for the Sales Force Effectiveness Blog, Ryan Tognazzini delves into the value of role clarity and sales incentive plans in the sales process.

Tognazzini says a key challenge when designing effective sales incentive plans is determining how to pay for the value each individual brings to the sale.

(See Incentivizing Your Incentive Plans)

He highlights five steps of a typical selling process, followed by role types that generally “own” each phase of the sale.

Tognazzini suggests conducting the following exercise:

– Get your leadership team in a room together.

– Draw a matrix similar to the one below on a white board.

– Across the top of the matrix, list out the steps of your sales process.

He says if you don’t have a defined sales process, stop here, because you’ve potentially uncovered a larger issue that sales compensation won’t fix.

“Get your selling methodology formalized before worrying about sales incentive compensation,” he writes.

– List out the various roles involved in your typical sales campaigns down the left hand side.

– Populate the matrix with a “P” for the primary owner of this phase in the sales process, and an “A” for those who assist in the phase of the process compensation sales incentive plans.

(See Is Your Sales Incentive Program Fulfilling Its Purpose)

“When complete, you should have clarity around the sales role each individual plays in the process. 50% of solving a problem is defining it correctly,” he writes.

For more tips on creating incentive plans, read Tognazzini’s full post here.

You might also like ...
Customer Success
Summer Slump Series: Resources to Thrive in Customer Success

Catch up on the latest Summer Slump Series: Customer Success edition. We compiled the top CS content to help you get ahead and make you and your team as successful as possible.

by Bayley Dietz
Customer Success
The Subtle Art of User Onboarding & Adoption

The “traditional” user onboarding flows and walkthroughs are dead. Learn about the next era of user onboarding and how to adapt to the changes in your organization.

by Yazan Sehwail
Customer Success
To Boost Your Customer Lifetime Value, Make This 1 Critical Investment

The importance of customer lifetime value (CLV) can’t be overstated. If you want to increase your CLV, then you should start by investing in customer success.

by Hannah Steiman