The way companies manage and develop their sales strategies is evolving rapidly. In 2025, Sales Performance Management (SPM) will face a dynamic and competitive...
If you want an organisation to be successful in a competitive market, you need a good GTM strategy. For the best performance, companies should leverage sales compensation with sales operations — two key functions that create revenue and align the business.
Sales Compensation vs. Sales Operations: Why Combine the Two?
Sales compensation inspires teams to reach a goal and sales operations gives the form, information, and activities to achieve that goal. When the two aren’t in alignment, money is wasted, teams become demotivated, and revenue is lost. With these functions integrated together, companies create an integrated solution that allows sales teams to pursue strategic objectives and optimize business operations.
Real-World Application
Think of a SaaS company developing a product. Its GTM focus is on vertical customer acquisition. An attractive sales compensation package could pay more for deals in these verticals. Sales operations, on the other hand, reviews data to find ideal accounts and gives sales teams the tools and data to make more sales in less time. They help the salesforce pinpoint the right customer and convert them more effectively in combination.
How to Tap the Force of Alignment.
1.Analytics-Informed Decisions: Leverage sales operations data to create incentive strategies based on market realities and GTM strategy.
2.Technology Integration: Access sales performance management software to track compensation performance and react accordingly.
3.Optimal Goal Setting: Engage both sales and leadership in the design of compensation packages to encourage behavior consistent with organization goals.
4.Outcome-Focused Success
One international retail brand mapped its compensation to territory growth goals and provided salespeople with sales analytics in real time from sales. It was this synchronization that generated 20% more regional revenue within a year.
Businesses that tie sales compensation and sales operations can tap into their GTM plans for sustainable growth and competitive advantage.