A large distributor of MRO (maintenance, replacement, operational) products and renovation supplies was falling short of sales targets. The company was executing a transformation across its business to drive growth. Leadership believed that sales compensation plans did not drive the behaviors required for consistent profitable growth.

The company desired to understand the root causes of underperformance across sales teams and identify the highest priority areas for future investment. The leadership team wanted to ensure sales compensation plans focused on driving profitable growth and motivating desired selling behaviors.

To assist the client, the Alexander Group (AGI) executed a comprehensive assessment informed by analytics, qualitative insights and benchmarks to prioritize recommendations. The assessment focused on four key topics:

• Identify key factors limiting sales growth
• Compare sales investments to industry benchmarks
• Evaluate the current sales compensation practices
• Identify opportunities for change

The assessment uncovered elements hindering growth outside of sales compensation, including:

• Lack of a consistent segmentation model to identify which accounts, markets and verticals warrant effort and yield value
• Inward-out approach to value propositions did not focus on solving customer needs
• Undefined sales motions drove account maintenance and limited growth
• Resource deployment between outside and inside sales drove ineffective coverage and increased the number of customers in decline

AGI designed new sales compensation plans and a roadmap for change that outlined and prioritized six key workstreams to effectively transform the sales organization.

The company used AGI assessment findings to create a transitional execution plan for change. They evaluated the current sales compensation practices and made design changes based on the AGI recommendations.

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Learn more about AGI’s Distribution practice.


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