MANAGEMENT & OPERATIONS: Incentive Plans for Driving 2016 Sales Performance
The most under-utilized tool in the Chief Revenue Officer’s survival kit is incentive plans. Many sales commission plans today are still the simple ‘one size fits all’ platforms with some even having an earnings cap for ‘rewarding’ high level numbers. If you want to motivate sales performance, consider separate incentives for new vs. current customer business, margin performance thresholds, discount buckets to eliminate discounting, progressive (increasing) payout thresholds, forecast accuracy, quarterly consistency, etc. Behaviors (and skills) improve with better plans.