Such harmonisation is a guarantee that sales operations and Sales compensation plan that drive go-to-market (GTM) strategies can get on the same page to ensure better sales behaviours, greater operational efficiency and more scalable revenue growth in the process, a more integrated organisation with aligned approaches to market penetration and sales success.
1. Aligning Sales Incentives with GTM Priorities
Sales operations helps the company run efficiently and effectively, via such activities as territory design, demand and scenario planning, budgeting and allocation, and resource analysis. If comp plans are not aligned with these operational insights, the incentives will be out of sync. For instance, suppose sales operations has a growth strategy to expand existing accounts, yet the commissions plan incentivises winning new clients. Then there is a mismatch: sales reps may choose to forgo the opportunity to deepen relationships with existing customers, so that they can instead sign up new ones.
By working alongside it, sales compensation can level up, ensuring incentives match key business objectives. Picture a software company launching a new product line. While sales operations might identify this product line as a strategic priority, sales compensation can develop and implement new incentives that encourage a team’s focus on adoption, ultimately ensuring the team performs within the confines of the GTM strategy.
2. Driving Data-Driven Adjustments
In this way, data from sales operations can help inform compensation design: if you know how many units, which segments or regions, or which sales reps and quota levels are underperforming, then data can identify when a course change is necessary. Furthermore, having additional granular data from sales performance can help drive palpable profit to the bottom line; reallocating sales resources can create positive financial impacts. As an example, if a large deal that you need to close is revealing itself in your pipeline, you might want to realign incentives to capitalise on this opportunity.
Conclusion: A Collaborative Approach to Sales Optimization
This permeates a constant feedback loop: as sales compensation is optimised, it enables opportunities for sales operations to further optimise sales productivity. This was the missing piece for me. It’s more than just making salespeople super-productive. It is about ensuring that sales is strategically positioned to deliver on the overall direction of the business.
