Calm Down, Chaos and Change are Not the Problem
Change is a constant. Companies that avoid hyperventilation, develop core products or services, and play the long game will win.
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
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 your business, such as supply chain operations, including stock allocation or fulfillment functions. ClickPoint provides automated lead management solutions and guidance to help you manage change when deploying our lead management solution across your organization. Click here to look at the range of standard ClickPoint reports showing lead management metrics.
