Many companies are realizing that their sales commission process is outdated and unable to keep up with the times. These outdated processes typically create conflict and competition among your sales team, leading to low morale and underperformance. Most companies have made the decision to move away from this outdated system and implement a modern sales commission program. The main goals of a modern sales commission program are to build teamwork, increase motivation and create transparency among the sales team. These programs are built around analytics and metrics, allowing you to program your business processes in an objective way.
1. Understand Your Sales Strategy :
Before you can build a modern sales commission program for your business, you must first understand your sales strategy. Understanding your sales strategy will provide the foundation for the programs you are going to build. You must have defined which sales channels to use for maximum performance. The backbone of any commission software is the sales cycle. With this you will be able to identify the channels that are most effective for your business and implement guidelines for closing deals and creating partnerships.
2. Continuous Improvement :
To keep your sales team motivated and productive, you will need to monitor the performance of your sales team on a regular basis. You will want to understand what barriers are holding them back from successful closing. This means that you should institute a system for encouraging continual improvement with your sales staff. This can be done purely by setting sales quotas and objectives for each staff member and it could be achieved through bonus plans and incentives. The key is to make sure that you continue to provide high performance teams with the motivation and training necessary for them to reach their goals.
3. Build Sales Teams :
If you are going to build an effective modern sales commission program, you will need to build a sales team. You cannot have a successful and productive program without a solid foundation of dedication from your team. Your sales team should be able to continuously improve their skills and increase productivity in the long run. By providing them with advanced training opportunities, you will be able to build the necessary skills for increased production and performance levels. You can also assign specific people roles or departments within the company based on their expertise or position on the team roster.
4. Focus on Core Competencies :
You should make it a point to build a sales commission program that is focused on your core competencies. This will allow you to align the objectives and goals of your sales team with the needs of the company. It is important to make sure that you are able to reach these goals in an efficient manner and provide opportunities for continual improvement. You also want to make sure that your program is simple and effective. The revops framework is a good example of a sales commission program that is focused on core competencies and performance.
5. Build a Clear Sales Process :
In order to create a modern sales commission program, you will need to understand the sales process. You will want to break down your sales process into separate steps that can be easily managed and improved upon. This will make it easier for your team to understand these processes and identify the specific tasks that are holding them back from success. This process is often referred to as business analytics, which focuses on providing optimum results for your business at all times. It makes use of analytics and metrics to measure performance, allowing you to make adjustments based on the information you gather from this data.
ElevateHQ is a modern sales management platform for building sales teams and managing the sales process. It is a complete software solution, providing you with all of the tools necessary for building a successful and productive sales commission program. The platform is built around modern data analysis techniques and provides metrics to measure performance on a regular basis.