As a new fiscal year approaches, sales compensation is a critical piece of the pie

Did you know…

  • 72% of tech companies are aligning talent profiles and incentive compensation with XaaS selling
  • 95% of XaaS companies have adopted ACV as the dominant crediting practice

 

The technology industry continues to push aggressively into a XaaS world. Defining priorities, revenue mix and go-to-market strategy for your annual plan are imperative. Tech firms regularly evaluate how to drive and measure new business, multiyear contracts, customer success, subscription and consumption.

These dynamics all create a major impact on sales compensation and incentives.

Alexander Group’s latest research includes actionable insights and benchmarks on topics you can use in your FY planning efforts. And it has a significant emphasis on incentive compensation with XaaS selling. Benchmarks include:

  • Bookings and sales costs per seller
  • Coverage models and headcount ratios
  • Salesforce turnover and seller ramp times
  • Sales compensation design and pay levels
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