Commission Strategy: Missing Your Number
Bad news. You’re about to miss your quarter…. again. No one likes missing your number or being on a losing team. And when you couple that with only making half of your target commissions? The problem is motivation.
So here are 5 sales comp strategies to help you move the needle!
1. Reduce quotas to match actual performance
Assign conservative quotas and give multiple targets that your team can hit to boost motivation. You can do this by nominally lowering the number and also by breaking down quota periods into smaller chunks (eg: from annual to quarterly, or quarterly to monthly).
2. Report in real-time
Keeping your team focused on their quotas gives a motivational boost which has been shown to make goals feel 30% closer, feel 17% easier, and increases speed by 23%.
3. SPIF on process execution
Paying reps on a small SPIF on each step of the sales process will show you where deals are breaking down and enable reps to correct the process. This will give you more data on what the successful reps are doing and where to double down on immediate training for the reps that need help.
4. Prepare for change
Be upfront about why plans are changing and that they’ll likely change again in another quarter.
5. It’s okay to pay slightly higher commission rates
You’re at risk of losing people and the sure-fire way of missing your number is to lose your team.
Your sales comp strategy should meet the needs of the business and help you avoid missing your number: more behavior-driven plans, real-time reporting, and flexibility all lead to more motivated reps.
Sign up for a complimentary comp plan review with a comp expert to see how we can help you improve your commission strategy.
Want a refresh for everything you need to know about sales compensation? Our Ultimate Guide to Sales Comp is just what you need!