Best Practices
Pay to behave
Is your sales organization not promoting a new product or service? Is sales focusing efforts on the install base instead focusing on new customers? Are they competing with channel partners instead of assisting them to execute in the marketplace? Are they focusing on one product or service more than another? These are common complaints you might hear from a VP of Sales or CEO.
Recently, I had a conversation with a client CEO who had concerns with the recent performance of his sales team. The paraphrase of his sentiment was:
“We just launched new an entire wave of new products and the engineering has never been better. We trained all the sale people on the new offerings, which was a considerable investment, but the products are not moving. I am considering replacing sales management to address this issue but that also is extremely expensive.”
I asked a simple question, “May I look at your compensation plan?”
His startled response, “What does that have to do with making changes to my organization?”
I said, “Everything.”
Professionals choose the sales profession for a variety of reasons.
- The opportunity to make money.
- Recognition for a job well done.
- Since of team work and mutual achievement.
All people work to make money. That is why it is called “work” and not “fun.” Sale people are compensated based on their performance. They are the face of your company to your customers, prospects, and partners. Sales is a mission critical function of most organizations. With no sales you do not exist.
To get those new products out the door and into customers hands, start with the compensation plan. Basically, pay your sales organization to behave. It is a perfect symbiotic relationship, exists already, and is far less costly than replacing valuable employees.
Let’s look how you can take what motivates a sales person and overlay a compensation structure and recognition program that will create a stimulating environment.
Motivator: Compensation
- Incentive programs for selling those new products
- A bonus for completing education program on new products
Motivator: Recognition
- Companywide recognition program for top sales performance in selling the new offering
- Regional performance recognition for selling new offering
Motivator: Since of Team
- Communicate company vision frequently
- Communicate a go-to-market plan for new products and offerings
- Take it too the competition!
- Foster an environment of contribution, winning, and belonging to something special
A word of caution, it is a fallacy to think sales people are only motivated by money. Sales people are like athletes for business. Sales people are almost always competitive, assertive, and self-motivated. They do not like failure and will leave for greener pastures if they do not feel their skills are fairly compensated and recognized. Great salespeople will take risks if the rewards are sufficient.
Good luck out there!