Eguide-Incentive-Compensation-Plan-Design.pdf - 7 STEPS to Designing an Incentive Compensation Plan that Drives Sales Per formance S ales organizations

Eguide-Incentive-Compensation-Plan-Design.pdf - 7 STEPS to...

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7 STEPS - to - Designing an Incentive Compensation Plan that Drives Sales Per formance
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7 Steps to Designing an Incentive Compensation Plan that Drives Sales Performance 2 74% of companies surveyed were not completely satisfied with their compensation plans. S ales organizations focus intensely on improving sales plan compensation, and for good reason: 74% of companies surveyed by CSO Insights in 2014 said they were not completely satisfied with the plans they had in place. According to the same study, insufficient staffing and a lack of expertise prevents these organizations from introducing more effective compensation programs. This guide introduces you to the critical aspects of successful compensation plan design, from establishing sales strategy as the backbone of the plan to treating plan design as an ongoing process. Based on Optymyze’s extensive experience in the field, we recommend the steps described in the following pages to create a compensation plan that drives results. This information equips you to improve incentive compensation and, by extension, increase sales force performance - leading to business growth. Sales Behaviors Impacted by Compensation Plans: Selling to new accounts Retaining existing business Cross-selling/upselling Selling new products Avoiding excessive discounting Using a CRM system consistently Team selling Selling higher-margin products Motivating and retaining sales reps Source: CSO Insights, 2014
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7 Steps to Designing an Incentive Compensation Plan that Drives Sales Performance 3 What is an INCENTIVE COMPENSATION PLAN? An incentive compensation plan rewards salespeople based on performance. Designing such a plan is a complex process because it must account for different payment structures, as well as for historical data and market insights. The challenge is to design a compensation plan that maximizes motivation and enables salespeople to achieve goals despite complex selling environments.
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7 Steps to Designing an Incentive Compensation Plan that Drives Sales Performance 4 Pay for performance Align corporate goals with sales force targets Encourage strategic selling behaviors Keep sales force motivated Attract and retain top talent WHAT IS AN INCENTIVE COMPENSATION PLAN? The Role of an Incentive Compensation Plan
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7 Steps to Designing an Incentive Compensation Plan that Drives Sales Performance 5 How to Design an Effective INCENTIVE COMPENSATION PLAN Over years of working with companies to create effective sales compensation programs, Optymyze has distilled the process into seven major steps that any organization can follow. Articulate the sales strategy 1. Strategy is the backbone of the incentive compensation plan. A successful plan is rooted in sales strategy and aligned with corporate goals, such as increasing revenue or market share or successfully launching a new product. Starting from your specific sales strategy, design an incentive compensation plan that encourages the sales force to behave in ways that lead to the achievement of these goals. For example, if
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  • Spring '17
  • Sales, CSO Insights

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