Case Study

Redesigned Global Sales Compensation for Expanding Ad-Tech Firm

The current sales compensation program at a top ad-tech company had been in place for about three years. The company’s rapid growth, product expansions and recent acquisitions meant the plans were no longer consistent or aligned with the evolving business strategy. The worn-out plans were causing strain on the sales force. Morale was suffering, and the sales force turnover rate reached 25%. Most painfully, top performers were walking out the door.

The sales compensation program needed updating to match market competitive practices. Plans also needed to address new roles across markets and segments, while simultaneously adhering to a globally consistent philosophy, guidelines and platform jobs. Sales and specialist roles required some defining based on new rules of engagement focused on land, adopt, expand and renew activities. In addition, new roles must be created to drive global and strategic account management. The chief revenue officer knew this was a problem and convinced the CEO it was time to design and build a new, best-in-class sales compensation program to launch in the next fiscal year.

Alexander Group conducted more than 30 field interviews, analyzed pay and performance, and surveyed all ~1800 sales employees globally to determine the perception of the sales compensation plans. Alexander Group then conducted a series of in-person and virtual project team, design team and steering committee meetings in the U.S. and Europe to create global sales compensation plan designs and policies for 90 unique platform jobs. The work also produced a sales compensation program design governance model with clearly defined roles and responsibilities across all functions.

The new program created a much needed “buzz” across the sales force. The client’s sales compensation plans now align with the market and the company has turned things around, from losing top performers to attracting top talent. The new sales compensation program and governance model provide much needed structure and teamwork. The company is also now poised to handle future changes to the sales compensation program following a streamlined, effective process.

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