Tuesday, November 10, 2015

What Is The Role Of Sales Commissions In Your Company?

What Is The Role Of Sales Commissions In Your Company?

If I Were a Customer and You Were My Sales Rep ...

... Here's How I'd Like You to be Paid

How do you feel when your sales rep earns a commission or wins a trip when you buy from them?

How does the customer win?
  • Does the sales rep understand your needs and interests?
  • Will they navigate your buying cycle so that you can do things at your pace?
  • Are they concerned about your entire experience before, during and after the sale?
  • How do you know what's behind their recommendation?  Is it truly your best interests, or an internal SPIF, or selling what's in stock, or inventory liquidation, etc.?  Do they need this sale in order to make quota?

I'd prefer to know that the sales rep is being compensated based [to a large degree] on my level of satisfaction.  If the entire team that is involved in designing and delivering my solution also shares in the rewards and recognition, then, I'll know they have a vested interest in my satisfaction and I'm not doing all the work.

Does anyone other than the sales rep win?
  • How does the account team or project team win?
  • Does their company win?

Companies can differentiate themselves by taking a fresh look at their compensation programs.  They need to be designed so that the degree of customer satisfaction and the degree to which their company wins determines the degree to which sales team members become eligible to win. Earned deal or project compensation can be shared among team members depending on individual roles and contribution.

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