Sales compensation plans are at the heart of your sales strategy. The way your sales team sells will be driven by the way their pay is structured. And the same goes for those around them. At one company I worked at, sales management was paid on revenue, and marketing management was paid on profit margin. … Continue reading How Hubspot Evolved Their Sales Incentives
Have you ever run a contest where a salesperson hit a big bonus or qualified for a trip by gaming the system? If you’re in Sales or Marketing management, it’s almost inevitable. It’s unfortunate, and it’s frustrating, and you’ll vow to never let that happen again. But the fear of repeating it can often lead to over complicated … Continue reading Keeping it Simple – Sales Incentives
“Do you mind if I include the extended warranty with your purchase? It costs $149, but the final price to you will be the same.” This sounds like a sales scam – add something in at the last minute to boost the value of the purchase. But in this case, I had already negotiated a … Continue reading Sales Incentives and Unintended Consequences
If you're lucky enough to have a small, direct sales team, then an incentive program isn't that difficult to communicate. After all, these folks report to you, are paid by you, and spend all day (hopefully) thinking about your products and who to sell them to. But if you're going to market through indirect channels, you … Continue reading Making it Stick
McKinsey recently published a study suggesting that the amount invested in loyalty programs doesn't pay off in terms of growth or profitability [Making Loyalty Pay:Six Lessons From the Innovators]. Surprising? Not really. As I thought about all of the programs I've signed up for...and how many cards are sitting unused in a drawer somewhere...it started … Continue reading Do Loyalty Programs Work?