Establishing the Right Incentive Plan is Key for Sales
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.
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.
“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.
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