A market leader in AI-driven energy solutions needed to assess the effectiveness of its sales compensation plan to reinforce future growth strategies. The company was the result of an integration of a hardware focused company with a provider of an ‘as a service solution’. However, management identified several concerns with the compensation program as it related to the newly formed integrated sales team.
The newly formed company sought to integrate the software (SW) and hardware (HW) legacy organization, which proved challenging as each organization’s sales comp plan had different plan constructs, including measures, commission rates and crediting rules.
In addition, the legacy HW business had long deal cycles, and crediting policies resulting in lengthy wait times for payments to sales representatives. This had a direct impact on both talent retention and new seller recruitment.
The top three objectives for the company were as follows:
The company chose Alexander Group, the market leader in sales compensation design, due to our deep vertical go-to-market expertise, which enabled us to assess their business situation and drive implementable solutions quickly.
Using Alexander Group’s proprietary database of sales compensation plan cost, productivity and design, the company was able to benchmark its existing compensation structures to market best practice. Alexander Group conducted a comprehensive assessment of the current sales compensation program to determine how well it supported and reinforced the strategy, market practices and best-in-class principles.
Based on our assessment of the existing sales compensation plans, we worked closely with the company’s revenue leaders to identify the following fundamental plan design challenges:
Alexander Group made the following recommendations based on our expertise in sales compensation plan principles and best practices.
Credit multiple resources on appropriate sales. Each resource involved in the sale receives a percentage of the credit, and the total credit adds up to 100%. The benefits of this approach include:
As a result of our consulting approach and recommendations, the company has the following outcomes:
Rapid growth and acquisitions can result in misaligned sales compensation approaches. Understanding corporate strategy and role deployment will allow organizations design a holistic compensation program to support the strategy of the business.
Alexander Group has unrivalled expertise in best-practice sales compensation design. We help manufacturing leaders assess and optimize compensation programs for improved sales performance, productivity and ROI.
Alexander Group understands your revenue growth challenges. Since 1985, we’ve served more than 3,000 companies across the globe. This experience gives us not only a highly sophisticated set of best practices to grow revenue—we also have a rich repository of unique industry data that informs all our recommendations. Aligning product, marketing, operations and finance efforts behind a successful sales organization takes insight and hard work. We help the world’s leading organizations build the right revenue vision, transform their organizations and deliver results.