Leadership at a Latin American media company questioned the current sales organization’s position amid profound industry changes. They have been unable to deliver the expected results across multiple brands in both legacy and new platforms, and suffered from an overreliance on a small amount of core products. An added concern was the non-standard sales compensation plans paying two distinct groups of sellers–tenured reps on a 100% commission plan and newer sellers on a quota-based bonus plan plus base salary.
The client looked for a complete redesign of their coverage model with revised roles, responsibilities and rules of engagement. They also wanted to deploy new sales compensation plans aligned to the revised role expectations using proven design principles. The tenured reps on a 100% commission plan posed a particular challenge due to the direct linkage between their income and existing territories.
The Alexander Group began with a comprehensive assessment, which highlighted an inefficient market coverage due to poorly defined segments. This led to role confusion, lack of tailored value propositions and a gap to effectively sell across the portfolio.
Alexander Group helped design a coverage model with more focused and clearly defined roles, as well as new sales compensation plans that aligned to the revised roles’ expectations. Alexander Group also devised a transition strategy to shift tenured reps on a 100% commission plan to a more flexible quota-based bonus plan; and highlighted the need to expand the existing marketing function, historically focused on B2C, to also support advertisers.
After a six-month preparation to complete the overhaul of their sales model, the client implemented the new go-to-market model and already credits some early wins to a clearer, more streamlined approach. They also recognize that new plans are more properly rewarding expected sales execution for each unique role.