Distributors: Align Sales Compensation Programs to Drive Revenue

By: Andrew Horvath Distribution, Revenue Growth Strategy, Sales Compensation Program Management

According to a recent Alexander Group survey, over 40 percent of top distributors feel they are unprepared to successfully recruit and retain new talent. Distributor sales strategies across segments are evolving due to changing customer needs. Job expectations and duties are also changing: sales roles have developed from transactional (income producers, product pushers) to strategic (account managers, solution sellers). With this change in the sales model comes the need to re-evaluate how to compensate these sales roles to ensure alignment with company revenue goals.

Distributors need solutions to safeguard against the downfalls attributed to a misaligned sales compensation program. In response, Alexander Group recently hosted a webinar that discussed the key steps for developing a sales compensation program to improve distributors’ top-line growth and profitability, drive effective cost management and avoid excess risk. Practice leaders from the Alexander Group and distributor attendees examined:

  • How sales strategy directly impacts sales compensation
  • What elements comprise a best-in-class sales compensation program
  • How to diagnose issues with your current sales compensation program
  • A three-pronged approach for effective sales compensation management

To hear the full presentation recording, please download the webinar.

For more information on how the Alexander Group can assist you with redesigning your sales compensation program to drive revenue, please contact our Distribution practice.

Co-author: Igor Uroic is a principal in Alexander Group’s Atlanta office.

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Andrew Horvath

Andrew Horvath is a principal in the Chicago office. He co-leads the Distribution practice, monitoring trends and creating strategies to help growth-focused organizations stay on top of a rapidly changing market. He also supports the firm’s Private Equity practice, working with portfolio companies of growth-focused private equity firms to grow revenue organically. Andrew applies his expertise in customer segmentation and go-to-customer coverage to help clients optimize complex sales models. He also works with Fortune 500 companies across other industries, including manufacturing and high tech.

Prior to joining the Alexander Group, Andrew was a consultant at Stax, Inc., where he managed market due diligence, competitive intelligence, go-to-market strategy, new product testing and marketing strategy engagements for corporate and private equity clients. He designed and executed voice-of-the-customer studies for clients in multiple industries and across several geographies. Andrew has also worked in commercial banking as an internal strategy consultant.

Andrew has an MBA from The University of Chicago Booth School of Business and a B.A. in economics from the College of the Holy Cross.

Igor Uroic

Igor Uroic is a principal in the Atlanta office. He co-leads Alexander Group’s Sales Quotas practice. Igor applies his experience in the areas of sales strategy, sales compensation, and quota setting and allocation design. He works with Fortune 500 companies across various industries, including high tech, software and media/advertising. Igor has managed numerous international sales effectiveness and sales compensation design engagements. He’s worked on the ground with clients in several European countries with a concentration in the U.K., Germany and Belgium.

Prior to joining the Alexander Group, Igor worked as an analyst for The Bedford Group, a marketing consulting firm in Atlanta. He conducted resource allocation and marketing effectiveness analysis for firms spanning a wide range of industries, including telecommunications, pharmaceuticals and consumer packaged goods. Igor has an MBA from the J. Mack Robinson College of Business at Georgia State University and a B.S. in International Affairs from the Georgia Institute of Technology. He is also a Certified Sales Compensation Professional (CSCP), WorldatWork.