Originally Published MX March/April 2005
ADVERTISING, DISTRIBUTION, & SALES
Sales Compensation as a Strategic Business Tool|
Return
to Article: |
With a sales compensation management system in place to streamline the tactical aspects of SPM, the medtech company can maximize the value of its automation investment by taking advantage of the new capabilities it provides. Several key steps will lead to more-effective performance management.
Step 1: Define and implement compensation plans that are aligned with basic corporate goals. Customized plans will motivate sales reps to pursue performance targets that support company goals for revenues, profits, and growth in the customer base.
Step 2: Streamline sales-related processes through system integration. SPM added to customer relationship management, sales- force automation, and other front- and back-office data-based management systems provides a foundation for detailed reporting and analysis that, in turn, can be used to further improve performance and profitability.
Step 3: Motivate the sales force through optimized communication. Timely, accurate information pertaining to performance and rewards can spur sales reps to higher levels of both achievement and company loyalty.
Step 4: Monitor the effectiveness of sales compensation programs. The modeling capabilities of a comprehensive, automated SPM system lets managers gauge current program effectiveness and anticipate the likely effects of changes in circumstances.
Step 5: Make adjustments along the way to prevent the development of new performance gaps. An automated system enables compensation plans to be modified easily when new product introductions, company reorganization, or other events affect the underlying system metrics.
Copyright ©2005 MX
