Between September and October 2015, Aberdeen surveyed 254 end-user organizations to understand their sales compensation and overall sales performance management best practices.
When compared with under-performing firms, Aberdeen found best-in-class firms were:
- 151% stronger at onboarding and training sales reps
- 130% more likely to strong or outstanding territory management results on quota performance
- 98% more likely to report higher satisfaction rates among sales employees
More Accurate Sales Forecasts
Incentive Compensation Platforms were among the three enables most frequently used by best performing companies. When segmenting out companies actively using ICM platforms, Aberdeen noticed several year-over-year performance improvements, as can be seen in the graph further down.
It’s interesting to note that Best-in-Class both use ICM and are focused on the accuracy of sales forecasts. And accurate sales forecasts are already known to be directly associated with superior performance!
Effective Territory Management and Sales Compensation
Matching the right skills and labor volume to the projected amount of revenue a territory can yield, is essential.
Combining sales compensation practices and ICM solutions, Best-in-Class companies more efficiently correlate input (size of territory, previous results, competitive intelligence) to output (revenue and commission achieved) and understand how to optimally match human resources to geographic or industry segments covered by reps.
Click below to read the full Aberdeen report, Incentive Compensation Management: Investing in People and Profits.