Building Blocks for a Best Practice Sales Comp Plan

We understand that sales compensation is a critical lever for driving growth and maximizing sales performance. At SalesGlobe, we help companies design sales compensation programs that not only retain high-performing salespeople but also fuel sales growth. With a proven approach, we align compensation plans to business objectives while rewarding sales teams for their achievements.

Imagine a tailored compensation solution that directly ties your strategy to measurable results, aligning sales incentives with business goals like never before. We’ve partnered with many organizations to implement strategies that enhance sales effectiveness and drive profitable growth – and soon, we'll have something that will make it even easier for you.

In this article, we'll guide you through the essential steps we take to create best-in-class sales compensation programs, from understanding company strategies to plan design. But more importantly, we're excited to share how our latest approach simplifies and optimizes every aspect of this process.

Understanding Your Company Strategy

A great compensation plan starts with understanding your strategy. Often, sales compensation problems stem from larger strategic misalignments, and we aim to diagnose the root cause first. Our unique Revenue Roadmap helps identify where your organization might be disconnected, examining everything from customer insights to sales strategy, customer coverage, and enablement. This comprehensive analysis is the first step in ensuring that compensation plans drive, rather than follow, company strategy.

Connecting Strategy to Compensation: The Revenue Roadmap

Our Revenue Roadmap identifies four critical layers of business alignment:

• Insight: Understanding customers, markets, and competitors to align with company performance.
• Sales Strategy: Defining products, customer segments, and the unique value proposition that sets you apart.
• Customer Coverage: Determining the right channels and roles to effectively reach your market.
• Enablement: Aligning sellers to the strategy with incentives, training, and tools.

Our approach helps tie these insights directly into compensation plans that truly reflect your business priorities.

Outlining C-Level Goals

C-level goals drive the core of any compensation plan—ensuring that company-wide priorities translate into meaningful incentives for sales teams. Whether it’s focusing on specific customer segments, product priorities, or financial growth targets, we help clarify these objectives so your compensation plan can guide and inspire your team effectively.

Plan Design with the Sales Compensation Diamond

Designing an effective sales compensation plan involves more than just numbers; it requires framing the plan correctly, linking pay to performance, and aligning financial goals. Our Sales Compensation Diamond provides a structured approach to:

• Framing the Plan: Establishing who is eligible and determining pay mix.
• Linking Pay to Performance: Setting target compensation, pay mix, and establishing clear performance thresholds.
• Aligning for Results: Ensuring upside potential for top performers and defining clear metrics that salespeople can impact.

Our latest solution takes this foundational approach and makes it even more accessible, integrating these concepts into easy-to-use, customizable compensation plans that deliver clarity and impact.

Transforming Sales Compensation

Now imagine, having access to tailored learning resources, best practice guides, and interactive tools and resources that not only boost team capability but also elevate their strategic skills, making them more resilient to future challenges.

On November 11, 2024 SalesGlobe will be releasing a new platform designed to help you and, in some cases, streamline the process of creating, managing, and adapting sales compensation plans. Our new platform will provide powerful insights and clear linkages between sales activities and financial outcomes, ensuring your teams are motivated, rewarded, and aligned with the growth trajectory of your business.

We’ve seen time and time again how well-structured compensation plans lead to increased sales performance, talent retention, and overall growth. With our solution, you can confidently design plans that not only meet today’s needs but can evolve with your business as it grows.

Ready to transform your sales compensation strategy? Contact us today at info@salesglobe.com to learn more about how we can support your journey to driving revenue growth and sales effectiveness, and keep a close eye out next week as we transform sales compensation together.