It’s more than just sales anymore, especially when the business is already very erratic. Strategic Incentive Compensation & Sales Performance Management (SPM) allow businesses to produce results consistent with long-term business strategy that motivates sales teams while helping them optimize for profit.
1. Incentivize Value over Volume
Profit can be maximized by moving away from volume to value selling. An example SaaS company could use a commission structure where the sales reps get paid not just for bringing in new customers, but for getting long-term, value contracts as well. Sales reps get paid more percentage on deals with long-term commitments or larger down payments. This pushes the team to focus on great deals, those that build long-term sustainability and thus increase retention and revenue certainty.
2. Employ Data-Driven Target Setting
Incentives and growth strategy generally mean updating quotas and targets according to data in real time. Organizations can use SPM systems to make attainable and overambitious targets based on analytics. A consumer goods provider, for example, which is vulnerable to regional economic conditions revises quotas quarterly, taking into account regional economic forecasts and performance data. This flexible quota-setting model promotes resilience, keeping sales teams motivated with attainable objectives even when the climate is not friendly.
3. Ensure Precision Execution with Scalable Rewards.
Corporates can employ tiers of incentives that are equal parts of profit and expansion. For example, a manufacturing company offers an accelerator for sales over margins that awards the reps with more commission for the profitable sale. meanwhile lower-margin sales are locked, which makes reps look for high-margin products. It helps to enable growth but not profit without suppressing innovation by connecting individual labour to corporate efforts.
Managing incentive payouts with strategic focus and having the SPM platforms to evolve with the market can help companies create an adaptable sales culture. This not only results in profitability, but makes the business more flexible to grow with changing market conditions.
Building Resilient and Profitable Growth through Strategic Incentive Compensation and Sales Performance Management
Financial literacy concept. Business investment, income growth, personal finance management or control of capital. Analyzing, planning budget, calculate profit. People saving money, managing expenses. 
