When designing a compensation plan involving quotas, sales leaders must pay special attention to the outcomes they want.
Sales organisations often struggle to find the best way to motivate their sales force.
Some common questions include:
How much of a rep’s compensation should consist of a fixed salary and how much should be based on commission?
Should commissions be capped?
What’s the effectiveness of bonuses and other incentives?
SALES QUOTA RESEARCH
While past quantitative research has investigated some of these issues, in our recent study we focused on an under-researched aspect of sales force compensation: sales quotas. More specifically, what should be the appropriate frequency of quotas – daily or monthly?
To answer this question, we conducted a large-scale field experiment at a major retail chain in Sweden.
The company sells small to mid-sized consumer electronic goods, accessories (such as headsets and phone cases), electronic parts, and small home appliances.
With more than 80 stores, the firm employs a direct sales force of about 350 employees who are compensated with a fixed salary plus a variable tiered commission, which ranges up to around 2%, based on sales performance surpassing a preset quota.
MONTHLY QUOTAS VS DAILY QUOTAS
هذه القصة مأخوذة من طبعة April - June 2018 من thinksales.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة April - June 2018 من thinksales.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Getting Over Your Fear Of Cold Calling Customers
A recent research study found that 48% of business-to-business salespeople are afraid of making cold calls.
10 Tips To Get Honest, Productive Feedback
Great leaders are great learners. Their never-ending pursuit of information pushes them to constantly improve and sets them apart from the rest. Getting and learning from feedback isn’t always easy, but it is necessary, if we want to become better.
The 5 Things All Great Salespeople Do
The best salespeople know they’re the best. They take pride in their art form. They separate themselves from the rest of the pack regardless of circumstance. So how do they do it? What’s their secret? Are you one of them?
Why Trade Shows Are Worthy Of Your Marketing Budget
Given unrealistic expectations against a modest budget, marketing leaders are routinely tasked with making trade-offs on what stays and goes in their annual budget. In a highly digitised world, trade shows might seem like the ancient way to do things, but they remain one of the best forums for exposure to customers. Increase your success rate with trade shows through more thoughtful planning that aligns sales and marketing to common goals and objectives.
Why CRM Projects Fail And How To Make Them More Successful
CRM is an important tool, but it is just a tool. When the laptops are shut down for the day, it’s your sales team that is responsible for bringing value to clients and driving revenue. Implement your CRM with that in mind and you’ll be pleased with your ROI.
Is Your Corporate Strategy Paying Off?
Key questions to determine if your strategy is working.
3 Ways to Improve Your Ability to Diagnose
Selling requires a strong ability to diagnose the client’s problems and challenges.
How To Create Compelling Content
How do you create content that cuts through the noise? How do you get attention now that there is a glut of content being created?
Build Up Your Resilience By Asking Yourself Two Simple Questions
You may surprise yourself and find good in the bad.
How Marketing Can Increase Customer Lifetime Value
Marketing can play a pivotal role in boosting customer profitability.
