research reveals: how to effectively manage sales compensation

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© Copyright 2016 The Sales Management Association. Sales Management Association Webcast 01 September 2016 Presented by Research Update: Managing Sales Compensation

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Page 1: Research reveals: How to effectively manage sales compensation

© Copyright 2016 The Sales Management Association.

Sales Management Association Webcast

01 September 2016

Presented by

Research Update: Managing Sales Compensation

Page 2: Research reveals: How to effectively manage sales compensation

About The Sales Management Association

Slide 2© 2016 The Sales Management Association. All rights reserved.

A global, cross-industry professional association for sales operations and sales management.Focused in providing research, case studies, training, peer networking, and professional development to our membership.

Fostering a community of thought-leaders, service providers, academics, and practitioners.

Learn More: www.salesmanagement.org

Page 4: Research reveals: How to effectively manage sales compensation

© Copyright 2016 The Sales Management Association.

Sales Management Association Webcast

01 September 2016

Presented by

Research Update: Managing Sales Compensation

Page 5: Research reveals: How to effectively manage sales compensation

RESPONDENT DEMOGRAPHICS

Page 6: Research reveals: How to effectively manage sales compensation

Company Size and Role

Slide 6© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

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Salespeople At Target

Slide 7© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

Page 8: Research reveals: How to effectively manage sales compensation

Questions and Discussion

Slide 8© 2016 The Sales Management Association. All rights reserved.

What is the “right” percentage of the salesforce that should achieve quota or target pay?

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SALES COMP PROGRAM ATTRIBUTES

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Rating the Firm’s Sales Comp Program

Slide 10© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

Page 11: Research reveals: How to effectively manage sales compensation

How Many Get it Right?

Slide 11© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

Page 12: Research reveals: How to effectively manage sales compensation

Questions and Discussion

Slide 12© 2016 The Sales Management Association. All rights reserved.

Seems like sales compensation programs are not retaining talent or generating ROI. Why might this be true?

Page 13: Research reveals: How to effectively manage sales compensation

COMMUNICATING THE PLAN

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Too Late, Too Often

Slide 14© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

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Questions and Discussion

Slide 15© 2016 The Sales Management Association. All rights reserved.

How can firms communicate sales compensation plans and quotas earlier?

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ESTIMATING PROGRAM VALUE

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How Sales Comp Creates Value

Slide 17© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

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Questions and Discussion

Slide 18© 2016 The Sales Management Association. All rights reserved.

Performance management efforts seem to bog down around processes like quota setting and territory assignments. How are these issues best addressed?

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WHAT GOES WRONG

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Handling Disputes

Slide 20© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

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Changing Things Mid Stream

Slide 21© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

Page 22: Research reveals: How to effectively manage sales compensation

Questions and Discussion

Slide 22© 2016 The Sales Management Association. All rights reserved.

Respondents are surprisingly poor at mid-year changes. Why are they so difficult and what can be done?

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TECHNOLOGY

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Apps on Apps On Apps

Slide 24© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

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F9, F9, F9, F9, F9, F9, F9…

Slide 25© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

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Technology’s Meager Dividend

Slide 26© 2016 The Sales Management Association. All rights reserved.

N= 78 firms

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IMPROVEMENT PRIORITIES MAYBE WONT USE THESE

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Program Attribute Importance

Slide 29© 2016 The Sales Management Association. All rights reserved.

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Firm Effectiveness

Slide 30© 2016 The Sales Management Association. All rights reserved.