If you’re in the manufacturing or distribution sector, you may be aware of rebates. These are price reduction incentives that sellers give to their clients in order to drive desired customer behaviors and boost profitability. They intend to encourage customer retention, boost profitability and improve sales of certain products. Sales rebates can be broadly classified into two types:
The main objective of Sales Performance Management (SPM) is to have most of your sales people hit their quota more often. SPM uses various tools to keep a Salesforce motivated and focused on their quotas while working within their territories. Some of the key aspects that characterize a good SPM strategy include incentives and commissions, training and coaching, on-boarding, sales quotas and territories, and sales data analytics.
For a business that has various divisions or incorporates direct sales and partnership channels, preparing a compensation plan that rewards all those involved in bringing a sale can be a complex task. The business risks issues like overlapping commissions, overpayments, and sales conflicts. However, you can ease the problem by having a good compensation management system. Here are some tips you can use to account for the different sources of sales turnover and make sure you deliver fair compensation to your staff.
Are you paying your salespeople properly? We are certain that automating sales commission will save your company money and time. Besides, it’s a sure way of getting your incentive payouts done accurately and on time.
Did you think that preparing a sales compensation plan was extremely difficult? Actually, it isn’t. However, there are some intrigues involved that make it trickier than determining a salary range for the rest of your employees who are in non-sales posts. The dilemma is always in determining a balanced plan where you aren’t overpaying your salespeople or underpaying them. This keeps most business owners wondering, “How much should I pay my salesperson?”