Originally Published MX November/December
2001
ADVERTISING, DISTRIBUTION, & SALES
Warning Signs
Many signals of potential alignment or incentive issues take the form of comments from sales reps and medtech customers. Company leaders should be attuned to such remarks that might indicate some realignment is necessary.
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• "How
am I going to win the sales contest if you take away my most valuable accounts?"
Such a quote is likely to come from a sales rep in a disproportionately
high-potential territory who is paid and measured on sales volume.
• "Other reps are overpaid," or "I’m not making
enough money." Comments like these from sales reps indicate that territories
in a heavily commissioned sales force may be out of balance.
• "I’m working harder than anyone. I can’t possibly handle
more accounts." This comment could come from a sales rep whose territory
is geographically too big. The rep is probably spending most of his or her time
traveling and little time selling. Conversely, under a market-share-based compensation
plan, the same comment could actually signal a territory that is too small.
• "Where is my sales rep?" If you’re hearing this
from customers in certain territories, chances are good that those territories
are too big.
• "Is all this attention I’m getting showing up in my price?"
or "Didn’t I just see you?" Comments like these from customers
indicate that territories may be too small.
Copyright ©2001 MX
