Sales Compensation Plans Should Foster High Business Acumen
Sales Acumen Is Not The Same As Business Acumen
Sales
pros with high sales acumen know how to qualify and nurture prospects,
and how to close deals. They don't rely
on leads generated by the marketing process, so they have a plan for approaching
the right suspects in search of new prospects.
They interpret and respond well to objections and know when to persist or
move on. Only after understanding needs do
they recommend a solution. Following up on each sale conveys authenticity and by
quickly resolving issues they earn renewals and referrals.
High Business Acumen Is A Key Differentiator
Business
acumen
blends perspective in Finance [P&L and balance sheet], Market [opportunities
and threats] and Strategy [goal attainment methodology]. Business acumen elevates a sales pro's
position to partner when they earn the right to collaborate with customers to solve
a business problem.
Sales Pros With High Business Acumen Understand
How Their Company Wins
Sales compensation
programs
should encourage participants to develop both business and sales acumen. In
addition to motivating short term behavior, these programs should also support the
company's business strategy that doesn't vary much from year to year.
Participants understand that sales overhead [salary,
benefits, memberships, certifications and expenses] is covered when they fully implement
the process, and build a strong customer portfolio and a healthy sales
funnel. Real time feedback will keep participants
on track to meeting this basic requirement.
Depending on the nature of
your business, you can add the right incentives such as:
- Situational incentives i.e. off-season sales, new accounts, new market segments, etc.
- A % of gross profit is paid for closing large opportunities if the sale exceeds targeted %GP, includes a plan to close the deal, and the proposal leverages a unique value proposition.
- Achieving Annual Quota earns a budgeted commission with YTD payments.
- Participants who exceed their quota are eligible to earn a share of Company Net Profit Contribution where NPC = [Total Gross Profit - Total Sales Overhead].
