Sales Incentives: Go Beyond Volume

Topics:
Incentives and Compensation
Tags:
Incentive,
Sales,
Sales Force Management,
Sales Strategy
Source:
OpEx Consulting Group

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Overview: The sales activity in an organization has high demands from its salespeople. Even their pay structure is performance driven. The same is governed by the ‘Pay for performance’ (PP) plan wherein the salespeople are paid based on the amount of sale they make. For this reason, the sales employees have a high degree of pay at risk. Most sales incentive mechanisms are strictly commission based. In such scenario, the quantity and not quality of sale drives behavior of the sales force. The paper discusses this issue and stresses on quality aspect in formulating sales incentive strategies.

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Format: PDF | Size: 128KB | Date: Jan 2003 | Pages: 2

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