The short answer is no! You should also consider other roles for sales compensation eligibility.
Research indicates that “selling” is moving beyond the traditional sales jobs. Roles, such as pre-sales, sales development representatives and post-sales customer success managers, have elements of selling making them eligible for incentive compensation. Do you reward these jobs for sales success?
Sales compensation pays for “persuasion” success. Helping buyers make informed commitments is the basis of a selling role.
By replacing the word “selling” with “persuasion,” the lens of eligible jobs expands. Selling is the act of informing customers of solution offerings, helping with decision making, securing purchase commitment and ensuring customer satisfaction. A closer look at jobs along the sales path/buyer journey reveals that a number of roles help with some or all of these efforts. Should you reward for these successful persuasion outcomes?
Here is the challenge. Traditional sales compensation practices link incentive pay to revenue outcomes. Not all of these roles produce booked revenue. While some are responsible for securing revenue such as renewals, others contribute to the sales progression, such as securing qualified leads. Do these successful persuasion events warrant sales compensation eligibility even if revenue has yet to be booked?
Digitally enabled selling systems now provide the platform for multiple parties to guide the buyer through the purchase process. What were once silo organizations, such as marketing, sales and service, are now becoming connected, integrated functions with the seamless hand-off of responsibilities from one sales progression task to the next.
In Chart I, some companies are paying for persuasion prior to booked revenue for select jobs such as lead generation representative, business development managers and even territory sales.
And, the types of measures being rewarded include the following as displayed in Chart II. The top three persuasion activities include number of new opportunities, number of leads and number of meetings.
While the trend for rewarding “non-sales” jobs is emerging, many still do not provide incentive payments. However, here are the jobs for incentive participation consideration outside traditional sales roles.
Sales compensation is no longer just for sellers. Others who are influencing (persuading) the customer to meet with a salesperson, help configure their purchase requirements, ensure customer satisfaction and ensure solution adoption are all candidates for sales compensation eligibility.
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©2021 The Alexander Group – All Rights Reserved – Issue No. 200121
READ ALL ISSUES:
Solving Today’s Market Disruptors
Global Sales Comp Practices
Sentinel Charts to Monitor Programs
Sales Comp: Linked Formula Design
Sales Quotas: Friend or Foe?
Sales Comp: Breaking the Rules
New Fiscal Year Sales Comp Plan
Sales Force Trends
Test Your Knowledge
You Can’t Hide From It
Getting the Mix and Leverage Right
2021 Sales Comp Hot Topic Findings
Should Reps Be Paid on Profits?
Sales Comp Starts With Job Design
Sales Compensation Victims
Global Sales Compensation
Are Salespeople Coin-Operated?
2021 Sales Comp Trends Findings
Is Sales Comp Just for Sellers?
Sales Comp: Rewarding Sales Profits
Pay Equity and Sales Compensation
2021 Sales Compensation Planning
Avoiding Common Misunderstandings
2020 Sales Comp Hot Topic Findings
What COVID-19 Found in the Shallows
Best Revenue Recovery Solutions
Save the Sales Force
Sales Seek to Protect Incentive Pay
Should You Protect Sellers’ Pay?
Use the Right Measures!
Are Comp Plans Industry Specific?
Careful About That Threshold
Commit to the Money, Not Mechanics
Should You Change Your Comp Plan?
Are sales comp costs variable?