Case Studies:

Redesigning European Sales Compensation Plans to Drive Growth

Situation:
Revenue growth had become slow to flat for the Dutch division of a global online advertiser. Leadership believed this was due in part to the lack of sales focus and performance. The current sales compensation plan wasn’t helping matters, as it did not drive over achievement or strategic behaviors that the company desired. Buyer behaviors were changing and the current transactional sales focus wasn’t keeping up with an evolving marketplace, with buyers seeking longer-term contracts.

Challenge:
The client needed to create focus on more strategic selling and foster a stronger pay for performance sales culture. They decided it was time to update the sales compensation plans to align to best practices, company principles and market realities. A new plan would help motivate and drive the desired behaviors and, as a result, the growth needed.

Solution:
The Alexander Group, Inc. (AGI) completed an assessment of the sales strategy realities in the local market and their impact on sales compensation design. AGI then provided sales compensation best practices in conjunction with global client requirements as inputs into the design process to create and cost new plans. Working closely with sales leadership, sales operations, HR and finance, AGI drove a collaborative design process for the new program. AGI then facilitated approval of the new plans including local and corporate leadership. AGI provided guidance and expertise to support works council review and approval of the new program.

Benefit:
The company’s sales compensation plans align to new market and competitive realities. The newly designed plans were approved by all parties including work council. The client launched these new sales compensation plans in the subsequent quarter and is beginning to realize the growth desired.

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