Thursday, November 20, 2014

Building A Sales Compensation Plan Part 2: Setting Sales Objectives and Goals.

Last week SkyPlanner, South Florida's premier Salesforce consulting and customization company, wrote an introductory post on creating the type of sales compensation plan that will allow your business to attract a superior sales team. Last week's post centered on outlining the four points every great compensation plan should cover: sales strategy, performance indicators, methods of compensation, and conflict resolution protocols. If you missed last week's post you can read it here . 

As we get more in depth into each section of the sales compensation plan we won't be discussing sales strategy as that can vary widely from business to business. Instead, we'll skip to developing sales goals and performance indicators. It's simple to set performance indicators such as "close X amount of sales every month" taking the easy way out can lead to false results. Sales could come through the use of discounts and/or incentives, which do not help a business's bottom line. Also, will sales to an existing customer count as much towards goals as a sale to a new customer? 

That's why sales objectives should be more than setting a quota. Other objectives such as selling a new product or acquiring X amount of new accounts are a great place to start. All sales objectives should reflect the advancement of the business as a whole. Only then can you begin to develop individual sales objectives that will keep your sales force motivated.