Reform Your Sales Compensation Plan And Improve Sales Performance.

Some people say that when salesmen calculate their own bonuses, their brains turn faster than supercomputers.

They know how to achieve the best results in the most effective way.

However, although all enterprises are rewarded by their salesmen, many sales teams still have some problems for a long time, such as:

* selling low profit projects and ignoring higher profits, because such a large volume and fast cycle.

* selling products, rather than finding solutions, has given customers long-term benefits.

* selling to the same customer without making efforts to develop new ones;

* most of the time, the contacts of the same single client organization are not approached by initiatives and more contacts with more people.

* do a lot of customer visits, and ultimately nothing.

Although many enterprises have done a lot of training to make salesmen overcome these problems, they still have the same nature.

Now, we are all in the "economic winter", and the budgets and time that we can afford to sell training are likely to be further reduced.

In any case, let your sales team have the right training and strive for better sales performance as part of your solution.

Give your sales staff appropriate rewards, so that their focus on doing the right thing is more in the training itself.

      拿人錢財，替人消災

Here are some common ways of rewarding Salespeople:

1) commission.

Give a commission according to a certain percentage of sales performance;

2) bonus.

Established on the basis of achieving predetermined annual sales target (sales revenue);

3) profit sharing.

Build up the total profit or profit margin; and so on.

The above three common ways, 1 and 2 are the most common, and some companies have begun to focus on sales revenue and pay more attention to achieving good profits.

However, the sales staff only pay attention to the pure economic profits they bring, rather than how they can develop sustainable "pipelines", which will ensure future revenue, and there is also a vicious price competition.

Here is a simple example.

Imagine if your job is to sell computers to other companies.

You mainly sell two kinds of products, namely desktop computers and servers.

Although desktop computers are getting thinner today, if your customers agree with your brand, they will buy from you.

Even though they may give you some discount, the business is relatively easy.

However, the sales server is somewhat complicated.

You need to know more technical details, customer needs and customers are very careful about your product performance and after-sales maintenance agreement.

Although servers are relatively less vulnerable to serious price competition (relative to desktop computers), desktop computers sold over sales servers may take two times to get the same amount of incentive pay.

Therefore, selling desktop computers will give you the best choice over sales servers, even if your company is building a leading brand that sells high quality and high-performance servers.

In order to stimulate sales people to sell more difficult products (or difficult target customers), the company provides "sales commission" to hardworking salesmen, that is, more bonuses or commissions to sell hard sell staff.

But this may or may not be appropriate for your case, especially in difficult times.

In the real world, things can be much more complicated, for example:

* some solutions are very complicated. You will need joint efforts from engineers or technical colleagues to help assess customer needs and draft proposals.

Therefore, collective rewards may be needed.

* some existing customers will not give you a big resold order in the near future, and customer service staff may be asked to do service customers through telephone and online means, and close small pactions.

You can reach the payment if you or your customer service colleagues confirm that your customers get some new purchase needs, and you help negotiate a new agreement.

You will get a larger group (you and your customer service colleagues) to encourage new pactions.

Sometimes it may take months or even years to develop new customers, or get advice from other departments of existing customers to take new solutions from you.

If you are unable to get the subsidy you made this month (the whole process may not yield anything), you will not invest your time and energy in it.

In view of the difficult economic times, the company will reduce sales expenses and stimulate sales people to sell hard to sell. Here are some broad suggestions:

* if your salesperson is still in the same thing (low profit products, or dealing with the same customer or providing new products instead of providing solutions), do not pay half of their commission or bonus.

* if your salesperson (non salesperson included) is not afraid of danger and gets sales, giving them full commission or bonus (but paying them as a collective dividend).

* if you follow the progress of your sales staff and their "pipeline" and develop new customers, you just have no budget to reward "hard work". You can only give sincere compliments and recognition in weekly, monthly or even annual sales meetings.

Who says rewards must always be based on money?

      如何獎勵銷售經理

Traditionally, the sales manager's remuneration is:

1) extract agent commission according to sales volume achieved by his team; or

2) get the relevant bonus in achieving or exceeding the annual sales target of the team.

In view of changing the reward of the sales team, the salary of the above sales manager should also be adjusted to get the best result.

If salesmen no longer pay only the amount of sales they bring, managers should also have a more advanced way of measuring the performance of payment.

In addition to turnover, the company's sales managers can measure the standards in line with 2-3 of the standards, which may include:

* maintain a certain profit margin;

* sales of products or solutions with strategic significance to the company; or

* acquire new customers, especially new customers who will achieve strategic goals for the company in the near future.

The single factor of the total measured by the above standards is that the manager can achieve the amount of X in 100%, and maintain a 30% profit in 80% of the list, which will get the Y amount.

Or, they can pay in the matrix mode. If two or all of the standards do not reach 100%, they will not get 100% of the bonus.

On the contrary, if all the standards or more than 100%, they will be doubly rewarded to mobilize their enthusiasm.

When implementing similar comprehensive performance evaluation, enterprises should not have too many standards to measure sales staff or managers, otherwise they may be confused by the complicated salary system and be overwhelmed.

The three criteria will be the number of good jobs.

      獲得他們的認可

It is estimated that most sales teams will be very angry when they face changes in pay.

As you may know, some salespeople, especially those with better performance, have made plans to use their expected Commission and bonus.

Some people may even borrow future earnings to spend on today's expenses.

However, if it is necessary for enterprises to readjust their sales strategy objectives, especially in such unpredictable and turbulent times, you may have to try to win their support and implement the salary reform of salesmen.

One thing to avoid is to announce the plan suddenly and force your salesperson to accept it.

It's almost immediately going to lose your best salesman.

Another thing that needs to be avoided is that if you lose some of your good salesmen, you will revert to old plans because you are timid and afraid, and you will lead to more confusion.

Because the salesperson you are born may be used to the new plan now, and if you are hesitant and irresolute at this time, you will soon lose those salespeople who can actually get the results according to the new plan.

In any case, those who leave you, especially those who make a difference, will not eat the grass in a short time.

Therefore, returning to the original plan may make the management feel good, but it will cause more harm and no benefit in reality.

If you feel that it is necessary to reset your sales compensation plan, here are some suggestions on how to get your sales team's approval and support:

* tell your employees the problems and challenges that your company is facing, and also need a new salary plan to make the company and its sales force more competitive.

* call for noble motives.

For example, you can tell your sales team that if you do not take any measures, more people will lose their jobs (rather than the bonus of the management department).

* actively get feedback and put your sales team on the new pay plan.

It's not that you want to accommodate all requests, but in doing so, your employees will think that their voices are heard.

Besides, you may get some good ideas.

* if some departments give strong resistance, you can choose those teams that are most likely to succeed and try out new plans.

This will enable you to push forward your reform with credibility and motivation.

* you need to understand that your salary plan is only part of the whole sales team (though a very important part).

If you want to achieve better performance, you will have to get better results from better employment, management and training systems.

* understand that no matter how you try, there will be some groups who are not satisfied with your new plan, and there may be groups that will support you no matter what you do.

Ultimately, any reform is particularly risky, and changing sales compensation schemes is definitely a high-risk category.