Some compensation plan tips
In any business, good compensation plans are an essential element in maintaining a healthy sales function. Indeed, for many sales professionals, an exciting comp plan may be the single most important motivational device a company possesses. Automating inbound lead management processes often transforms the effectiveness of sales teams.
When we say transforms we mean ‘radically increases performance’. This might double your average call rates and increase your conversion rates, drastically changing the total comp earned. It’s a very good idea to review your comp plans. Here are three tips about changing comp plans:
1. Don’t suddenly cap your comp plans
- Introducing a cap on comp plans is guaranteed to demotivate your sales teams and possibly even invite mutiny
- Uncapped comp plans provide the promise of ‘unlimited earnings’, an important element in shaping the national work ethic; this is so important it is virtually enshrined in the Constitution, so changing it is pretty much off limits
- Since the sales are there to support the comp earned, it is really quite unreasonable to consider capping comp
2. Keep your accelerators in place
- Altering comp plan accelerators is another sure fire demotivator for sales teams
- Meddling with comp plan accelerators just might make agents take their foot off the gas
- Leaving your accelerators untouched ensures that your agents remain fully incentivized
3. Consider how best to alter your comp payment schedule
- Hundreds of agents increasing call rates from 30 to 60 calls per hour with increased conversion rates, is likely to increase the amount of comp you pay out
- It may be advisable to restructure comp payment schedules because increased comp earned by agents increases cash flow requirements, altering liquidity requirements for working capital
Support for comp plan review and more from ClickPoint
The fact is that for most businesses moving over from a manual process, ClickPoint Lead Management solutions represent transformational change. This often requires you to re-calibrate the baselines of sales performance metrics. Compensation plan review is just one area. Sometimes there are implications for many parts of your business, such as supply chain operations including stock allocation or fulfilment functions. ClickPoint provides automated lead management solutions, as well as guidance to help you manage change when deploying our lead management solution across your organisation. Click here to take a look at the range of standard ClickPoint reports that show lead management metrics.