Summary: While organizations know incentives drive seller behavior, few measure whether those behaviors translate into business value. Closing this critical gap and measuring incentive ROI empowers organizations to stop rewarding bad activity, optimize pipeline quality, and stop over-paying for revenue while also driving high-performance behavior. Behavior design moves compensation planning from guesswork to continuous optimization
Return on Investment has long been the standard metric used to measure sales compensation, but it does not adequately evaluate seller behavior, profitability, revenue predictability and seller motivation. Instead, business leaders should take a closer look at how compensation plans impact decision-making both positively and negatively across four key areas of business. ROI Doesn’t Tell
While most sellers view sales compensation strictly as an economic or financial instrument used to pay them for their performance, incentive plans are actually behavioral mechanisms that dictate seller decisions, motivation, and selling actions. Learn how thresholds, accelerators, and perceptions of fairness impact seller decisions through a behavioral economics lens. Incentives Don’t Just Reward Behavior
