What is the MEDDIC sales methodology?

meddic

The MEDDIC sales methodology is a highly popular qualification method and sales training for complex sales that flourished in the 90s. This approach was developed by John McMahon, Richard Dunkel, and Jack Napoli to train their new sales hires at PTC. They gathered all the best practices of their over-quota reps on consistently closing high-value deals to create the MEDDIC method.

The approach attracted attention when the PTC sales team grew its sales from $300 million to $1 billion in four years. It works by focusing reps on continuously qualifying prospects so they can filter out the unwinnable ones and spend time on those most likely to close. We like to refer to these as the “ideal customer profile.”

In doing so, sales reps avoid wasting 50% of sales time on unqualified leads and losing approximately 67% of their deals because they aren’t properly qualified.

The MEDDIC framework helps reps identify and better qualify prospects for higher close rates and retention. If your business sells solutions that are technical, complex, expensive, or require a significant user behavioral shift, MEDDIC is a valuable process to adopt. By using MEDDIC to thoroughly evaluate and qualify potential customers early in the sales process, your sales team can focus their time on prospects who are most likely to close.

Deep dive of MEDDIC

MEDDIC is an acronym for Metrics, Economic buyer, Decision criteria, Decision process, Identify pain, and Champion. Below, we listed the details of each of the six qualification steps included in this sales methodology.

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1. Metrics

Determine the prospect’s quantifiable goals so you can explain how your product will help them attain their goals. Then, go a step further to understand how the prospect will measure success, enabling you to speak in their terms.

2. Economic buyer

Identify the person who makes the financial decisions for your solution type. Although the person may not be your regular contact, it’s important to know who they are. Then it’s time to contact the economic buyer. If this isn’t possible, ask your primary contact about the economic buyer’s mindset, expectations, decision-making process, and priorities so you can speak to their motivations when presenting your solution.

3. Decision criteria

It’s important to discern what factors the prospect’s company is prioritizing as they compare various solutions. For example, if your solution is software, these criteria might include things like ease of use, onboarding, integration, price versus budget, and potential ROI. Identifying these key factors enables reps to tailor their pitch to emphasize these areas of interest.

4. Decision process

Beyond the decision criteria, it’s essential to understand the prospect’s decision-making process. These are the internal steps required for them to finalize a purchasing decision. Knowing the steps in their buying process enables reps to track their progress toward closing the deal from the prospect’s perspective. Your sales managers will thank you. 

5. Identify pain

It’s essential to know the prospect’s problems and pain. This enables sales reps to show the prospect how your solution confronts and addresses their needs. A deeper understanding of the magnitude of the potential customer’s pain allows reps to quantify the value your solution will deliver.

6. Champion

A champion is an advocate or someone within the prospect’s company who stands to benefit the most from your solution. Developing this level of relationship with a contact facilitates keeping your solution top of mind throughout the buying process until the deal is closed. The longer your typical sales cycle or the more costly your solution, the more important it is to identify a champion to influence the decision-making process on your behalf. The sooner you can identify and foster your relationship with the champion, the better.

How it’s evolved over time and its current state

The MEDDIC sales training has evolved since its creation in the 90s. The original six MEDDIC qualification factors remain with additional criteria added over the years. The two most commonly implemented variations of MEDDIC include MEDDICC and MEDDPICC.

MEDDICC

The seventh qualification factor, represented by the additional C, is competition. This is for businesses selling high-dollar, large projects in a highly competitive market. In this case, salespeople need to have an understanding of the suppliers they typically compete against and be able to differentiate their solution against their opponents.

MEDDPICC

The eighth qualification criteria, represented by a P, is the customer’s “paper process.” This is where sales reps need to understand customer prerequisites. These include contractual, approval, legal, and vendor onboarding procedures. Also known as things that could slow down or block your deal.

And, a more recent refinement to the MEDDIC sales methodology is:

MEDDPICC+RR

As with the other two variations of MEDDIC, this latest iteration was created to accommodate the most complex B2B sales opportunities. The two Rs stand for:

  • Relative Priority: This refers to the prioritization of internal projects in terms of budget and time allocations since not all goals can actively be addressed at the same time. So, internal prioritization can become a deterrent to closing the deal.
  • Risk Factors: These factors have the potential to impact the customer’s decision process and include both internal and external factors. An example of an internal factor is a personnel change on the buying committee. Whereas an example of an external factor might be unforeseen factors like COVID-19.

Businesses usually don’t need all 10 criteria in the MEDDPICC+RR. So, you may choose to start with the original MEDDIC sales methodology and expand from there as needed.

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  • Prepare your coaching approach to reinforce initial MEDDIC training and promote continuous improvement in applying what they learn.
  • Train sales and marketing management on the MEDDIC method so they’re equipped to effectively support the sales team.
  • Initiate the creation of sales enablement resources to support continuous improvement and updates. Cold calling scripts instruct reps on how to incorporate the right questions into their sales conversations. This also helps them get started and facilitates role-playing.

Once you have completed these initial steps, it’s time to train your sales team on the revised resources and the steps in the MEDDIC sales methodology. Then have them start applying it in their day-to-day prospect conversations.

MEDDIC best practices

Implementing any new sales methodology can involve some trial and error. To facilitate your launch of the MEDDIC sales methodology, we’ve assembled some sales tips.

Review sales objections to help reps with talk tracks in overcoming objections.

Review lost deals to determine if you need to adjust qualifying questions to prevent reps from spending time on the wrong prospects.

Continuously finetune customer personas. This will ensure they are up to date and reflect the evolving characteristics of your ideal customers.

Update sales qualification questions as needed based on new insights, changing market conditions, and changing customer priorities.

Customize CRM fields with MEDDIC acronym. (Measurable goals, Metrics of success, Economic buyer, Decision criteria, Decision process, Pain points, and Champion.) Having these in place reinforces this sales training, keeps reps focused on the process, and makes it easier for them to record these valuable insights as they discover them.

Enable automated alerts to your internal chat platform whenever there is a change in the status of an opportunity in your CRM. This helps sales leadership inspect the change, determine whether it should be happening, and coach reinforcement or course correction.

Other sales methodologies to consider

Effective lead qualification filters out prospects that are unlikely to buy. This shortens sales cycles, improves sales forecasting, boosts deal value, and improves win rates. 

If you’re not sure MEDDIC is right for your organization, you may want to consider its predecessor or one of its variations such as BANT, ANUM, CHAMP, and FAINT.

BANT marks one of the earliest efforts to formalize opportunity qualification in the B2B sales environment. IBM developed it and the acronym stands for Budget, Authority, Need, and Timeframe.

ANUM, developed by Ken Krogue at InsideSales. It redefined BANT and stands for Authority, Need, Urgency, and Money.

CHAMP focuses on prospect challenges. This acronym represents Challenges, Authority, Money, and Prioritization.

FAINT, developed by the Rain Group, stands for Funds, Authority, Interest, Need, and Timing.

These simplified lead qualification methods tend to be more effective in shorter sales cycles and lower cost, less complex sales.

Conclusion

Having an effective lead qualification process in place makes a significant difference in sales outcomes. The MEDDIC sales methodology focuses on qualifying prospects throughout the sales process to filter out prospects unlikely to buy. This boosts close rates and sales productivity. Try this method if you have a complex sale and want to improve your team’s results.

QuotaPath’s technology maps your commission plan by automating sales compensation and commissions calculations. We also support the sales community with free sources, like our Quota:OTE Ratio Calculator and Sales Funnel

To see how QuotaPath can support your compensation plan, schedule a demo with our team. 

Key takes from “Navigating Compensation Planning in a Volatile Job Market”

pavilion ebook

QuotaPath and Pavilion recently partnered for the ebook: Navigating Compensation Planning in a Volatile Job Market. Get a preview of the ebook below followed by three key takeaways. Download the full ebook here. 

This year has been a year of extremes in the tech world. From talent shortages to recent lay-offs, it has been a precarious time for many in the labor market. Despite all of this volatility, something remains constant — the need for comprehensive compensation packages that exceed employee expectations. 

Employees today still want remote work, flexibility, and higher wages, which have not been increasing at the same rate as inflation. In fact, according to Hubspot, voluntary turnover at for-profit businesses hovers around 25%. Further, 25% of respondents to a PayScale study said they left their jobs for higher pay. While this is likely to slow down due to the aforementioned lay-offs and significant decreases in funding, hiring remains a challenge and a good overall compensation package is as important as ever. 

Moreover, competitive compensation packages are a strong way to motivate your team and retain your best talent. As Deloitte says, “Sales compensation is an integral part of salesforce effectiveness and involves aligning all aspects of plan design, from pay mix to target setting to the product and market strategy.” 

Competitive compensation packages

Is your comp package competitive enough to retain the best of the best? Even if it is, has the process been systematized to allow reps visibility into their monthly or quarterly earnings? How can you make your comp structure competitive, while still being flexible enough to meet market demand?

In this ebook, and in partnership with Pavilion, we interviewed four sales and finance executives from the Pavilion community.

Upon reading, you’ll gain insights into the following:

  • 4 different approaches to compensation and sales commissions
  • Challenges in the sales comp space and how they adapted
  • Tips on how to leverage comp plans to impact retention
  • Why complex plans are worth it

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3 key takeaways

First, offering the choice between commissions and equity is becoming more prevalent.

“I want to be generous with sales commissions, but for me, it’s a little bit of picking and choosing – equity or commission,” says Akash Bhatia, Co-founder at Epoch AI. “To incentivize salespeople, I show them what they can pick from and they can decide what makes them most happy with their compensation package.”

Second, your top sales talent and recruits crave compensation clarity.

“Good [account executives] really want to understand their commission plans,” said 

 Sam Seigle, VP of Finance at Zoomin.

This is where compensation management software, like QuotaPath, comes in to provide transparency and the ability to accurately forecast earnings. 

And third, you can’t scale without alignment around compensation.

 “It is important that sales leadership, RevOps, and finance are all in alignment with the sales commission structure and processes,” said Conor O’Donoghue, CFO at Ocrolus. Without alignment across leadership and departments, it will be difficult to scale comp effectively.

To learn more about QuotaPath’s commissions software and commission management services, schedule a demo with the team today. 

Meet QuokkaPath’s June winner: Kerttu Jaus

june quokka

Every month, QuotaPath collects nominations from our customers to name a Quokka of the Month. We’re thrilled to announce our QuokkaPath June winner below. To nominate a teammate, see past winners, and learn more about this initiative, check out our dedicated QuokkaPath page.

We’re traveling worldwide for our June QuokkaPath winner! 

June’s Quokka of the Month, Kerttu Jaus, lives in Estonia and has been with the on-demand software testing and QA platform Testlio for 4 years!

Congratulations, Kerttu!

Kerttu first signed on with Testlio as a Community Test Lead. But, in June 2019, she pivoted into the finance world when she began a finance internship that summer.

To no one’s surprise on her team, this hard-working, Estonian folk dancer, and travel lover seamlessly moved into her new role as Finance Operations Specialist the following fall.

“She is a delight to work with and always goes above and beyond to make my life easy as a VP of Sales,” said Michael Loiacono, Testlio VP of Sales and Kerttu’s QuokkaPath Nominator. “She relies heavily on QuotaPath to stay on top of all deals, commission payments, invoicing of customers, tracking down late payments and even helping us sort out the weird deals so people get paid properly.

And, most importantly, she always does it with a kind and positive attitude, added Michael.

“I once heard that F.A.I.L. stands for ‘First Attempt In Learning,’ Kerttu said about embracing positivity. “In a constantly changing startup environment, the only thing that’s really constant is change. Oftentimes you do things for the first time — and inevitably sometimes fail.”

“I’ve said it a hundred times and will say it a hundred more. I absolutely adore and admire the people I get to work with!” Kerttu said.

Still, her job doesn’t come without its challenges. 

Running point on Testlio’s Accounts Payable system, managing monthly close activities, handling and analyzing collections, and overseeing sales commissions can create a daunting stream of tasks. (Fortunately, she’s got some help from QuotaPath with the last one!)

“It’s easy to get lost in the sea of never-ending tasks, especially if you’re feeling like you’re in the ‘flow,’” Kerttu said. “But, at the end of the day, you have to remind yourself that you should try to live for yourself first and then for everyone else.”

Advice to live by, Kerttu! Thank you for sharing your story and for your excellent work at Testlio! 

Enjoy your summer travels to Croatia!

Nominations are now open for July’s Quokka of the Month. To recognize your teammate, answer six short questions and learn more about our QuokkaPath in the video below.

What is a clawback?

what is a clawback

Reps don’t love them, but clawbacks play an integral role in the sales compensation space. Below, we define clawbacks, how companies present them in comp agreements, example clause copy, and why leaders should protect their businesses with detailed policies.

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First, what does clawback mean?

In the case that a customer is mis-sold and needs refunded or fails to pay for their services, management may issue a chargeback of commission.

As an example, let’s say I’m a sales rep that closed a $20K deal last month and earn a 10% standard commission rate. Per my sales commission payments schedule, and using QuotaPath, I can see that I’ll receive my commissions from the deal in the next check. Hello, $2K! 

Fast forward to a month after receiving my sales commissions. I learn that my customer has to cancel their contract after I’ve already received my commissions.

In this instance, not all, but most companies will issue a clawback. 

A clawback occurs in sales when a company has paid rep commissions on a sale and then the customer abruptly ends the contract within a certain period of time. The clawback itself is when the employee pays back the commissions per the sales commission plan. 

HubSpot, for instance, has a clawback policy in effect for the first four months of the customer’s contract.

“If a customer cancels their plan one to four months after signing up, the salesperson who sold it to them is forced to give back their commission payment. This ensures reps focus their time and attention on businesses that can really benefit from the product.” That’s from HubSpot’s The Ultimate Guide to Sales Compensation.

Clawbacks outside of sales

Now, people view and define clawbacks a bit differently outside of sales.

Per the Corporate Finance Institute, it is “a contractual obligation to return money under special circumstances or events.” In finance, a clawback provision protects the company from employee fraud and misconduct, like inflated performance reports or when an employee fails to deliver on promises made.

What further differentiates clawbacks outside of sales commissions is that these ones can come with additional penalties beyond a refund.

Regardless of what industry you’re in, however, in order for companies to actually enforce a clawback, they need a contract. Then all employees subject to a clawback should sign it. In sales, for instance, this clause lives in an employee’s sales compensation plan.

What is a clawback provision/clawback clause?

When talking about clawbacks, you might also hear the term “clawback provision” or “clawback clause.”

In sales, this provision or clause refers to the specific section in the comp plan that outlines scenarios in which it’s okay for an employer to take back commissions and bonuses from a rep.

In our HubSpot example above, the clawback clause is both specific and easy to understand. If the customer cancels within the first four months, the rep returns commissions. If they cancel in the fifth month, the rep keeps commissions, and the company eats the churn. The end. 

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Clawback clause example for a sales compensation plan

Below, we listed sample copy of a clawback clause within a sales compensation plan. We borrowed this sample from Commission Clawback Sample Clauses and tailored it to the HubSpot example. 

Clawback clause example

“Any amount of sales commissions previously paid to the sales rep for any sales that [Company] could not collect or for orders returned or refunded within the first four months of the customer agreement will be deducted from the next sales commission check.”

The importance of clawbacks and provisions

Of course, reps don’t love a clawback. Plus, in some cases, a deal imploding after signing may fall entirely out of their control. 

Still, clawback policies encourage reps to vet the best opportunities and build long-term relationships with their customers. Reps comp’ed on renewals and add-ons are likely already doing the latter. However, for reps that hand off customers to account management and success teams after the deal finalizes, clawbacks give them another reason to invest in solid opportunities and relationships from the onset. 

“[A clawback] ensures that you are truly compensating your sales team for building the company. It also encourages your sales reps to consider whether a customer is truly staying for the long-haul, instead of only short-term gains,” wrote JT Rimbey in his piece about sales commission rates by industry.

Our recommendation for approaching clawbacks

In sales specifically, clawbacks can affect attainment, compensation, or both.

As an example, say I had a $10K deal fall through after signing and earning commissions. Will your clause mandate that I return the commissions ($1K), forfeit the total contract value as it pertains to my quota, or both?

We think the easiest — and least painful — strategy is to only collect the commissions back when a clawback takes effect.

If it does impact my quota, that means that I either have a $10K quota hole to crawl back from last month, or I’m entering the new month down $10K. This can be incredibly discouraging for reps.

That’s why we lean heavily toward commission-only clawbacks.

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Sales commission clawback help

A commission calculation software tool can help teams better manage clawbacks by ensuring accuracy and providing visibility.

Using QuotaPath’s commission tracker, commission recoveries automatically populate when deal values change in your synced CRM. Additionally, in instances when chargeback provisions dissolve after a pre-determined time period, such as four months, we can set up filters to accommodate clawback cycles. 

To learn how QuotaPath can automatically track your sales clawbacks and commissions, schedule a live, custom demo with our team.  

Is the usage based comp plan for you?

usage based comp plans

A usage-based comp plan is all the rage right now. But will it work for your team? Read on.

Consumption-based pricing or usage-based pricing is a model that has gained tremendous popularity in the recent past. And, it’s not expected to slow down any time soon. The pricing model is particularly common in SaaS companies. But the challenge that companies face in implementing this model is formulating procedures that help them succeed in Usage-Based Pricing (UBP).

Revamping and aligning sales commission plans to this new, flexible, and consumer-friendly approach can be daunting. 

On the consumers’ part, the pros of conducting business with vendors who embrace a usage-based pricing model are clear. They understand the benefits of the new model. They know that it allows them to use the product or service they need the way they want and then be billed for what they have spent.

But for sales reps paid in commission, the company experimenting with the process will require them to entice the consumers to spend as much as possible. Using UBP to incentivize the workforce and motivate them to make more sales can create bad work relations with the customers as they may use unorthodox practices to achieve the end. It may also misalign their incentives for the products and services sold.

Even more, a usage-based sales commission structure can complicate the commission tracking process because it often involves tiered, over-time payouts, and clawbacks. That is unless you use sales compensation software that can handle it. 

So, let’s take an in-depth dive into how an organization can effectively apply usage-based comp plans.

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What is a comp plan? (usage-based)

In Usage-Based Pricing, a comp plan covers the process of compensating sales reps for their services in the acquisition of new consumers. The plan also integrates revenue generated from the actual usage time of the software and is usually paid as sales rep commission. However, the biggest challenge associated with consumption-based pricing is coming up with a typical sales commission structure. With different compensation models available, settling on one can be a daunting undertaking.

How to structure a comp plan fit for usage-based models

In UBP, finding a viable comp plan that serves both the sales reps and the business is not easy. 

Sometimes fixating on sales incentives corrodes customer relations. For example, to earn higher commissions, the sales team may convince customers to make selections that aren’t the best fit. Then, when they close the deal, the once-friendly sales team ghost the consumers.

Reversely, leaders need to be mindful of how a usage-based comp plan can impact reps. If it’s set up poorly, where the rep is consistently paying back on clawbacks or having to wait a full year to earn anything, they’ll be less likely to stick around. 

So, before settling for a particular sales incentivizing structure, you should conduct sufficient research.

Here are some examples of comp plan structures that avoid these issues:

Total consumption vs. incremental consumption

In total consumption structure, the software company evaluates the gross consumption of services amongst customers. The business takes into account the projected final consumption when compensating sales reps. They then examine the services procured by a household or consumer and the total services provided during a particular timeframe before paying sales commissions.

Incremental consumption structure assumes services and products are homogenous and considers choice as an outcome derived from an intuitive process of information search. The strategy outlines how services or products are incrementally traded with time, and the company utilizing a UBP model uses the criteria to incentivize its sales rep. A comp plan that embraces incremental consumption considers future consumption patterns to carve the reps’ commission.

Actual billed consumption vs. consumption run rate

In actual billed consumption, customers pay for what they have used. For example, a consumer may be charged less by the power company during summer as they consume less energy. By analyzing the payments made, a company using a consumption-based pricing structure then pays the reps a percent of the gross.

In consumption run rate, businesses use their current financial status to forecast future performance. In this structure, an organization assumes the existing condition will stay the same and uses the extrapolated data when charging consumers to incentivize the sales rep with a percent of the payment.

If forecasted usage doesn’t match actual usage, the company may issue a clawback on the rep’s commissions for the difference if it’s substantial.

Hybrid consumption vs. a pure focus on consumption

Hybrid consumption is a new emerging trend among customers, potentially making conventional consumer stereotypes obsolete. The structure considers budget and premium alternatives across a wide range of services and product categories. In the process, it carves out a typical sales commission structure.

At QuotaPath, we have several customers run their commissions through a hybrid consumption model.

An example of this approach entails paying upfront half of the rep’s earnings based on estimated consumption. Then, the other half pays out on actual customer use or as the customer passes usage thresholds.

On the other hand, a pure focus on consumption explores consumer choices that lead to varying alternatives such as utility, satisfaction, and happiness.

The structure yields optimal choice, where consumers can rank different services and goods as per the levels of utility.

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Pros of using consumer-based pricing for business

  • Increases flexibility when responding to changing consumer needs
  • Raises profits as sales reps strive for more quality customers to earn higher commissions
  • Improves rep retention
  • Strengthens budget management
  • Enables a business to experiment quickly on a variety of recurring finances
  • Minimizes revenue leakages
  • Allows the creation of bundles and packages which gives organizations a competitive edge

To consumers

  • Improves customer satisfaction as they pay for only what they use
  • Empowers consumers

• Grants consumers control over their spending

How QuotaPath maps out usage-based comp plans

Does QuotaPath support usage-based comp plans? Yes! 

At this time, we have several customers on usage-based comp plans. How our incentive compensation software ingests and automates it will depend on how a team sets it up and what they want to accomplish. 

Like all comp plans, if your team moves toward a usage-based model, make sure it’s clear,  understood, and visible across your team. 

What are your thoughts on usage-based comp plans? Is it the future of SaaS sales compensation? 

To learn more about QuotaPath’s commission management software, find a time here to chat with our team. 

How a discovery call can help you win more deals (with 10 sample questions)

discovery call

Everybody loves to close a deal. But, before you have a chance at crossing the finish line, you need to figure out how to execute a strong start. A great discovery call sets the scene for a client-rep relationship that can last years. It’s how you’ll gauge whether a prospect is qualified and get the info you need to tailor your actual pitch.

In essence, a discovery call is your first chance to make a good impression. Knowing what to say and how to listen can make all the difference. Below, we offer a crash course sales training into discovery calls and sales tips. 

What is a discovery call?

One of the biggest mistakes a salesperson can make is jumping on a demo without first prepping for the discussion. Sales demos aren’t one-size-fits-all presentations. Each one should be tailored to the prospect at hand. To do that, you schedule a discovery call. This is a conversation with the prospect that allows you to get to know your potential customer. Think of it as a second date. You’re both interested, but now it’s time to see if this partnership is a good fit for all involved.

The majority of a discovery call will revolve around two things: identifying pain points and seeing whether your offering provides the right solutions. Many people think of a discovery call as an interview. It’s not. This highly interactive conversation should allow both sides to get a feel for the product, process, and potential. You’re building trust, too.

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If you have several product lines and associated specialists, a separate discovery is practically required. You can assess the needs of the client and schedule the right specialists for product to be on the follow-up call and participate in the actual pitch or demo.

Some people choose to do discovery at the beginning of a demo. This generally works better if you already know quite a bit about the company. You can conduct your own research or perhaps you have prospects fill out a questionnaire when they first indicate interest in your product. Combining your discovery and your demo can save time, but only for the right salespeople and the right product.

4 steps to running a good discovery call

There are four basic steps to running a good discovery call.

1. Set the agenda

This is when you state why you’re having the call and outline what everyone should expect. Establishing an agenda can streamline the call and make the discovery more efficient. If you’re not sure how to decide on an agenda or think your template could use an update, look to your old calls. Taping cold calls and using them as a coaching tool is a brilliant way to refine your agenda based on actual interactions. You can see where past discovery calls fell flat and which questions or answers seemed to garner the best response. The more effective you are, the closer you get to that all-important close.

2. Ask all relevant questions

This get-to-know-you session is only as valuable as you make it. Preparing a list of questions is a good idea, but make sure you’re not married to it. You don’t want the discovery call to turn into an inquisition. Remember that this is an opportunity not only to learn about your prospect but also to establish a rapport.

This is also the right time to check whether you’ll be going the distance with this company representative or someone else. Determine who’s the decision-maker now and you’ll save time and frustration later.

3. Allow the prospect to ask questions for you

Always make time to answer your prospect’s questions. They’ll likely have a few questions while you’re doing your own discovery. But allowing for a separate chunk and actually asking, “What questions do you have for me?” is important. Clients want to be heard. You’ll reaffirm your offering before signing off too, but the client’s questions will help avoid any miscommunications or ambiguity.

This portion of your discovery call is all about active listening. There is a ton of information hidden in not only the types of questions prospects ask but also in how they ask them. Learning to be an active listener can give you a huge advantage over the competition and help you secure a deal. You’ll also be able to spot misunderstandings early on in the process and correct any misconceptions before they have time to take root.

4. Set expectations for the future

Now it’s time to get your new customer excited about what’s to come. First, take a few minutes to summarize everything you already talked about and double-check that you’re on the same page. Then run through what will happen in terms of onboarding and other setup requirements. Talk about what you’ll need from the client in terms of resources, calls, access to their network or a physical building, etc.

Of course, there’s always a chance that you now realize your prospect isn’t a good fit for your product or service. In that case, it’s time to let them know why you don’t think it’s a good idea to move forward. Always try to end on a positive note. This might mean referring them to another company that’s a better fit or suggesting how you might work together in the future.

Streamline commissions for your RevOps, Finance, and Sales teams

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  1. What’s your current [what your solution solves for] process look like?
  2. What role do you play in that process?
  3. What are your biggest blockers, and what happens when those disrupt the process?
  4. Who else is impacted by this?
  5. How have you tried to address this problem in the past? If so, what was the result?
  6. What do you think would fix this challenge you’re facing? 
  7. How would you tell if the problem has been solved?
  8. What are you evaluating when looking into a solution?
  9. What’s your timeline for implementing a fix?
  10. If you don’t move forward with a product and vendor, what’s your company’s plan to address this? 

After working through these questions, outline the next steps and confirm a follow-up while on the call. Without that, your prospect is more likely to drop off. 

It may take some time and practice to get into a rhythm with your discovery calls, but the payoff is worth the investment. 

Additional discovery call resources:

28 Questions to Ask on a Call During the Sales Discovery Process (HubSpot blog)

SELL THE MEETING Set Discovery Calls & Sales Appointments To Close New Accounts (add it to your “best sales books of all time” list)

How to Hold a Discovery Call: Steps, Questions & Free Script (Selling Signals blog)

This Sales “Best Practice” is Actually Terrible for Your Discovery Calls (And it’s not what you think.) (LinkedIn Blog)

Lastly, as your discovery calls lead to higher quality opportunities, track your real-time and forecasted commission in QuotaPath. Our sales commission software will strengthen your overall sales compensation strategy and automatically track and calculate commissions so you don’t have to. Start for free today!

After 350+ strategy sessions, Graham shares 5 key comp management tactics

5 compensation plan tactics

Hi, I’m Graham Collins, QuotaPath’s Chief of Staff. Since 2019, I’ve conducted more than 350 comp management strategy calls. 

These calls have included first-time sales leaders, tenured sales executives, CFOs, CEOs, you name it. Turns out, that no matter how much or how little experience someone has in building a sales compensation plan, people tend to make the same mistakes. 

Below, I shared the five biggest takeaways around sales compensation, comp management, and commission structure that I’ve learned from these calls. 

1. Don’t go at it alone

So many compensation plan mistakes are made because Sales and RevOps leaders think that they have to build a comp plan by themselves. Maybe they’re hired as a VP of Sales and think their CEO expects them to be a comp plan expert. I’m here to say that’s nonsense!

The best plans that I’ve seen involve collaboration across Finance, RevOps, and Sales. If you don’t have a RevOps function, then Sales and Finance should work together. Two (or three) brains are better than one, especially brains with different specialties.

Additional tips:

  • Ask reps for feedback on their existing comp plans. What do they feel is unfair? What’s annoying? What’s been successful?
  • Talk about it with your peers. What’s worked well for them? What hasn’t, and why?

What happens when you try to build it yourself:

When I built an SDR compensation plan for my team by myself, it was horrible. It was overly complicated, I didn’t test the data, and I ended up having to redo it after rolling it out to my team. If I had asked for another set of eyes on the plan, most of those issues would have been avoided!

2. Keep it simple

Sales reps, like all people, have a limited amount of brainpower to dedicate to their jobs… which includes trying to understand their sales commission payments. If you force them to use too much time thinking about which types of deals you want them to sell, they’ll simply sell whatever they can. A key to sales compensation strategies is to encourage and discourage certain behaviors. If the plan doesn’t make that abundantly clear, reps will latch on to any deal they can close. 

Examples: 

  • Multiple products: If you pay the same sales commission rates on different products, but only want reps selling the one with the higher profit margins, your reps will continue to sell both because it pays the same.

    The fix:
    Drop the second product’s commission down to discourage reps from selling it.
     
  • Multi-year deals: If you pay 10% on a 1-year deal and 11% on a 2-year deal, you’re not really incentivizing them to sell multi-year deals. An extra 1% commission isn’t paying any more bills.

    The fix: However, if you pay 1.75x the commission on a 2-year deal, the rep will absolutely try to lock in the longer contract.

What happens when it’s too complex?

Reps will sell whatever they can and leave it to the “commission gods” to pay them accurately. Keep it simple. Use round numbers if you can (ie: 10% instead of 9.743%). And apply the same commission rate and accelerator tiers across products when not trying to steer reps to sell specific products, of course.

3. Test it (and don’t leave out extreme examples!)

Test your commission pay structure using historical data. If you don’t have any historical data, use random or expected data. Run extremes, like if a rep were to hit 400% quota.

What happens when you don’t test the extremes?

I saw a plan once that included exponential accelerators. Every 10 percent the rep achieved above quota, the commission rate increased by 1.1x. At a certain point (around 350% attainment), they’d have to pay their reps over 100% commission on the annual recurring revenue. They hadn’t tested the plan.

Fortunately for them, none of their reps hit 350% quota. But had they kept the plan into the next year, there were a few reps who would have likely hit those numbers.

4. Align plans to company goals

I’ve seen a lot of plans that can be easily fixed by building them out based on company goals. This is how the calls go:

Caller 1: We can’t sell Product A.
Me: Why can’t you?
Caller 1: Because the comp plan pays a lower rate.
Me: So your reps won’t sell it. Raise the rate and they will.

Caller 2: We’ve had problems selling multi-year contracts.
Me: Do you pay your reps more for doing so?
Caller 2: No.
Me: Oh. Ok.

  • The fix: Compensation plans should be the caboose, not the engine. Focus first on what you want the company to accomplish, then collaborate on the plans to model them based on those goals. If a company aims to increase their average contract values, for example, the comp plan should reflect that by rewarding reps for selling larger deals. If you want to sell to ideal customer profilet customers, give an extra bonus for those deals. 

5. Variable compensation isn’t everything

People often over-rely on compensation to drive different behaviors. Then they end up violating a bunch of the rules. A good example that I’ve seen in SaaS is having decelerators on discounted deals. I see the logic there: you want to discourage discounts, so you pay a lower commission rate. However, that type of behavior can be changed through coaching and setting up rules around who can discount and how much you can discount. That way you don’t risk further complicating your plans but still get the desired outcome.

Another example I’ve seen is activity bonuses, something like paying $200 every time a rep makes 500 cold calls in a month. Instead of outright compensating them for that, you should take the time to show them how making X cold calls results in Y meetings. (You can use our free Sales Funnel resource to help show this.)Then, based on your historical information, those Y meetings would result in additional revenue. It is a longer discussion, but one that causes them to want to do the behavior for the end goal rather than just to get a bonus.  

Compensation shouldn’t be used to replace coaching and support from managers. Instead, variable compensation should be used to reward performance and drive the right selling behaviors based on business goals. 

To schedule your own call with me, book time here. To learn why QuotaPath is the only rep-friendly commission tracking and compensation management software available, schedule a call with our team.

How compensation management software can improve quota attainment

compensation management software

You’ve probably heard of sales compensation management software at some point. You may even have colleagues who’ve mentioned their own installs have come in handy. But what does the software actually do, and more importantly, is it worth it?

What is compensation management software?

Compensation management software helps salespeople and those in leadership track the number of sales metrics and commission plans related to their department. Depending on the platform, this can include:

  1. Number of leads
  2. Number of sales
  3. Length of a sales cycle
  4. Compensation plan
  5. Sales commission tracking

This data can be used for various purposes, nearly all of which contribute to overall efficiency and efficacy.

Key features and benefits of compensation management software

Imagine you’re loading information into a spreadsheet by hand and relying on manual calculation. One numerical mistake or incorrect entry results in skewed outcomes. Incentive compensation management software paves the way for unparalleled accuracy.

There are other key benefits for your business, too.

Transparency

Forget black box data. Keeping your team in the dark regarding their own sales accomplishments makes people feel uneasy. It’s no surprise that anxious people tend to underperform.

The shared dashboards found on top-tier sales platforms enable everyone to have powerful insight. Your team knows where they individually stand and can see how they’re performing in relation to their coworkers. This can be a major motivator.

Identifying focus areas

Armed with vital information generated by incentive compensation software, salespeople can focus on strengthening their attributes. The software proactively identifies individuals or processes that need improvement. Now you can steadily collect data to help mentor your team or advise training to achieve better results.

Metrics & reporting

Speaking of metrics, those all-important numbers are easy to find using sales performance software. User-friendly interfaces make reports available at the simple push of a button. Plus, C-suite executives can take a look at will.

How compensation management software can improve quota attainment

Perhaps the best aspect of sales software is the power to fuel growth and inspire everyone to meet the team’s sales goals. Depending on the data, you may change your best practices and create a new plan for growth. Or, you may decide to reward the top performer or create a more targeted campaign for a new product.

Set and track personal and team goals

Goal tracking helps everyone keep the big picture in mind. Review relevant metrics and set goals specific to each individual. Remember, salespeople have different strengths and weaknesses. This is why blanket approaches to motivation are underwhelming.

Perhaps you have a team member who is great at warming up leads but has trouble closing. Maybe there’s a newer salesperson who struggles with an overlong sales cycle. With the right software, you can see what these pain points are and set goals designed to nurture improvements.

Help manage the pipeline

Sales pipeline management is the practice of keeping a pulse on every stage of the sales cycle. This not only applies to one sale but to the entire team’s active and prospective deals.

With a dashboard that displays everyone’s status, you can quickly identify what needs attention first. You can also see what your team accomplished over a specific time period. Perhaps more importantly, you’ll see what will be hitting the P&L sheet in the coming days, weeks, or months.

Gain easy access to historical sales data

If you want to make accurate sales projections, you need accurate data from past sales periods. This data can tell you a lot about sales cycles and engagement. Review activity by season, month, or territory. See which deals are most active, and track information about specific products or salespeople.

Why QuotaPath is the top sales performance software

Sales experts skillfully designed QuotaPath to be the compensation management software your team has been waiting for. Using our platform, you can:

  1. Understand individual and team earnings and monitor quota attainment
  2. Align your whole sales team to track performance, results, and revenue
  3. Integrate with existing CRM tools, such as Salesforce, HubSpot, and Close, to pull in deal data automatically and in real-time

Lastly, we built QuotaPath to set up easily and affordably. No cumbersome interfaces with a giant learning curve, and no budget-busting onboarding fees. Just expert software that works for your department and team. Our commission software offers an alternative to your commission tracker Excel model and goes above and beyond to motivate reps.  

Teams that have used QuotaPath have seen increases in sales and overall rep happiness.

For more information, book a demo and see how QuotaPath can work for you. Or, skip ahead and sign up for our free commission tracking software.

QuotaPath’s QuokkaPath May winner is a Sales Manager from Kin

may quokkapath

Every month, QuotaPath collects nominations from our customers to name a Quokka of the Month. We’re thrilled to announce our QuokkaPath May winner below. To nominate a teammate, see past winners, and learn more about this initiative, check out our dedicated QuokkaPath page

What does “team player” mean to you?

For Kin Sales Manager Melissa Shah, our QuokkaPath May winner, teamwork translates to supporting her team as a coach and, more importantly, a teacher.

“Melissa is very understanding,” wrote Kin Sales Consultant Tonya Brey in Melissa’s QuokkaPath nomination. “She’s always willing to help and offer assistance in a smart and efficient way.”

Tonya added that, rather than just answering questions, Melissa slows down and shows her team how to address their challenges should they come up again.

“Melissa is very understanding. She’s always willing to help and offer assistance in a smart and efficient way.”

Tonya Brey, Kin Sales Consultant

“She’s always there to teach,” Tonya said.

One time, for instance, Tonya had several questions about an upcoming commission check. Instead of directing Tonya to Finance, Melissa pulled up QuotaPath, addressed Tonya’s concerns, and guided her through how to find this out next time.

“I love to instruct and coach, and I’ve found my role as a Sales Manager very rewarding,” Melissa said.

More on Melissa

The sales leader joined the home insurance platform Kin just under a year ago. Prior to Kin, Melissa served as a sales manager at State Farm for nearly seven years.

“Sales excites me because your effort determines your earnings and I truly enjoy helping my team reach their goals,” Melissa said. “I’d describe my management style as supportive, and I set the bar high.”

As for some parting leadership advice, Melissa had this to share:

“The folks in the trenches on the sales floor know a ton about the company (often more than I do) and I make no secret of that,” Melissa said.

Excellent tip!

Please join us in congratulating our May Quokka of the Month winner, Melissa Shah!

Nominations are now open for June’s Quokka of the Month. To recognize your teammate, answer six questions and learn more about QuokkaPath in the video below.

3 ways to clean up your commission tracking process

commission tracking

An appropriate commission tracking process allows businesses to improve performance by rewarding their employees. Unfortunately, many organizations use ineffective methods to manage sales compensation, which can slow down scaling efforts. Relying on outdated methods to track earnings based on a commission plan increases the risk of errors, low morale for your team, and delays.

So, how can you ensure you save time, reduce mistakes and motivate your employees?

Read on to learn three ways to clean up your commission tracking process and improve your organization’s performance.

Challenges to the commission tracking process

Information silos

First up: information silos. These occur when divisions or departments fail to share vital information. Information silos can hinder efficiency and growth in your company. As a result, missed opportunities, lack of synergy, and duplications of efforts may follow. Spotting and correcting information silos can allow you to open critical communication lines in your company and enhance performance.

Potential for error

Using outdated methods, such as spreadsheets or manual commission tracking, can lead to errors. According to the Corporate Financial Institute (CFI), 88% of spreadsheets have errors. These mistakes can cost your business losses to productivity or even lawsuits. Commission tracking inaccuracies can lead to poor organization, confusion amongst sales reps, and disincentivized top performers. Other issues with spreadsheets may include:

  • Challenges in growing your company and the need to introduce more complicated sales compensation plans
  • Flawed commission payments due to miscalculations from spreadsheet errors
  • Minimized visibility into the tracking process for the commissionable reps, leading to a lack of transparency

Payrolls and accounting barriers

Sometimes the commission tracking process can be cumbersome when using manual methods. Even more, your accounting team may actually begin to fear each sales cycle’s end. The team will need to remember every employee’s comp plan. When an error happens, they end up getting blamed for commission inaccuracies. Payroll and accounting staff experience the following barriers:

  • Time-consuming and cumbersome commission calculations
  • Auditing and compliance challenges
  • The payroll and accounting team has to deal with sales reps’ anger
  • Manual commission tracking will likely result in miscalculations

Failure to achieve your organization’s goals

It becomes a challenge to meet your company’s vision if the accounting and sales teams spend significant time resolving commission errors. As a result, various departments in your organization start looking backward to solve disputes instead of focusing on business growth and expansion.

You risk suffering loss when your best sales account executives quit due to commission miscalculation frustrations. This can damage your sales and negatively impact your return on investment. But how can you make the commission tracking process straightforward and avoid the issues explained above?

Below, we share three solutions.

Standardize It

Document and standardize the tracking process steps to ensure you don’t make unnecessary mistakes. This is critical because when you need someone else to step in and fill in for you, they’ll know exactly what to do. Having multiple people serving as the “commission person” while following the same procedure will streamline the process and reduce confusion. Here are ways you can achieve better compensation management:

Tailor your report: No sales rep wants to go through bulky data to view their earnings. This should be quick and stress-free. You want to break down earnings by team member or region. With a commission tracking solution, this becomes simple to perform. Just pull customized data and send it to the appropriate individuals using a commission tool.

Label data clearly: Proper data labeling ensures all stakeholders can understand the numbers hassle-free. Software automation can allow you to customize an easy-to-understand dashboard for everyone to comprehend the data.

Create a logical flow: Ensure your information order is sensible for your sales reps. With sales commission software, you can set up customized mapping and reporting during onboarding and leave the rest up to the system.

Simplify It

Next, simplify it. Simplifying your commission tracking process will eliminate inaccuracies and allow sales reps to focus on the organization’s goals. Review the steps you created from standardizing sales compensation and see what needs improvement. Here are things you could adjust to make it simple:

Automate calculations: Feed your system of choice the required calculation algorithms and the necessary estimates to get the work done. One of the primary challenges of using a commission tracking spreadsheet is that it requires a heavy lift to combine data and calculate. They are complicated, and not everyone may understand how to use them. This often leads to a gatekeeper situation for commissions.

Provide real-time updates: This allows you to incorporate a large data volume and monitor it continuously. All the information you need is available in a few clicks. Real-time data enables you to accurately monitor earnings and stay privy to any late payments and sales rep bonuses. Most commission tracking platforms will offer integrations to popular CRMs. Just make sure they’re actually real-time and not data that only updates once a day.

Automate It

Lastly, lead generation has become highly competitive. Organizations need to find cutting-edge solutions that keep their teams happy and hungry for more. Automating your commission tracking process will help motivate your staff and maintain diverse individual commission goals, channels, quotas, and sales territories.

An effective sales commission software can help infuse more enthusiasm in your employees, reinvent your commission reporting and open up new possibilities. Efficient commission tracking software helps you with the following:

  • Accurate quota setting
  • Timely and insightful report delivery
  • Dispute resolving and answering questions
  • More sales insights
  • Little or no manual intervention
  • Behavior and sales progress analytics in real-time
  • Implement and track an ad-hoc SPIF or bonus
  • Complicated compensation plan management
  • Analyze how the new plan will impact your organization
  • Introduce a new comp plan and scale

Clear up your compensation formulas with QuotaPath

We end with this. Don’t let your commission tracking process hinder your business.Instead, let QuotaPath streamline your sales compensation process while motivating and retaining top-performing reps. Try our free commission tracking software. Or, schedule a time with a member of our team to see how we can take on comp management for your organization.

A message from our CEO on today’s tech downturn

tech downturn

The tech downturn is in full swing. Recession talks have dominated the headlines as interest rates saw the highest jump in 22 years and the stock market continues to fall. We’ve watched companies like Netflix, Carvana, and Noom enforce layoffs in the past week, with economists predicting many more in the coming months.

Founders, myself included, have begun having conversations with one another, advisors, investors, and our leadership teams to plan accordingly.

Should we find ourselves in another economic downturn, fresh off the heels of the short (yet painful) one brought forth by the pandemic in 2020, we want to be prepared.

A primary driver of the tech downturn

In the technology sector specifically, a leading cause of this volatility hails from multiples on business valuations that come in much higher than their revenue.

For context, we typically see funding announcements with valuations that amount to 10x to 20x company revenue. But at the beginning of 2021, we started seeing multipliers 50x, 100x, even 250x revenue. 

Companies that received huge funding rounds ended up directing significant percentages of those fundings toward customer acquisition costs (CAC). They spent, for example, $30 to $40 million of their $50 million investment on marketing efforts to hit $10 million in revenue. On the outside that looks like a bump to $10 million. But what does the company have to show for it? The CAC far outweighs the revenue, which means they can’t raise at the same multiple again and risk a down round. A down round occurs when an investment leads to a lower valuation.

So, what do leaders do in this position? They reduce the amount of money they spend each month. We refer to this as “burn.”

Investors have begun instructing executives to conserve cash and cut costs via headcount reduction (aka layoffs) or eliminate unnecessary spend. See: Bloomberg’s “Tech’s High-Flying Startup Scene Gets a Crushing Reality Check.”

Where QuotaPath fits in

Fortunately, and unfortunately, I’ve been down this road before. 

I took my first job in sales fresh out of college for a PR SaaS platform in 2007 during a recession. Think about that. PR is one of the last industries you want to be selling into when the economy is down. Many of the people I spoke with didn’t know if they would have a job the next week. 

But we shifted our mindset. Instead of selling one to two large contracts, we went after six to eight smaller, quick deals to hit our targets. And it worked.

We applied a similar mindset in creating QuotaPath in 2018. 

We purposely think about our customers and how economic shifts can impact their hiring plans. We recognize that in times of uncertainty, companies look to cut the burn, whether that’s people or platforms.

We positioned ourselves from the beginning to serve as the commission tool that can move with sales teams as their needs change. We keep our prices transparent and have built a product-led growth model that scales with businesses no matter the size. It doesn’t make sense for businesses to overpay.

Teams can implement QuotaPath quickly. Our platform allows for fast adjustments in the system, whether that’s adding/removing users or building a new compensation plan.

Even more, we created QuotaPath’s product to play a much larger role than automating commission tracking

We are the only compensation management software that actually motivates teams, which has led to higher sales, team attainment, and rep retention.

Ask Dennis Dube, SVP of Commercial Operations at OSG, Blackthorn’s VP of Sales Joe St. Germain, or RoverPass’s Director of Sales Kristen O’Hara

Each of these sales leaders, and many more within our QuotaPath network, can attest to the effect of reps being able to see how their next deal impacts their personal and professional goals. Dennis, for instance, finished 2021 with the highest sales year reported in company history and 70 percent of his team achieving quota. 

Motivating your team, keeping spirits up, and driving revenue as reps question their job security will be especially important through the remainder of 2022 – and likely into 2023. 

Choices ahead

No doubt, every leader has already begun to evaluate how to maximize revenue and where to save money. We have had those conversations here and will continue to do so. 

But we will not be cutting people or programs that have empirically shown to increase productivity, motivation, and retention. We hope you’ll consider the same. 

As always, our team is here to support you, and that includes support from me. 

Feel free to reach out, aj@quotapath.com, if you have questions about optimizing your QuotaPath experience, or, if you’re a leader looking to chat through today’s economic landscape.

Sincerely,

AJ Bruno

OSG runs QuotaPath’s Salesforce commission tracking sync, sets record sales

salesforce commission tracking with quotapath success story

The power of an intentional compensation strategy goes a long way. That, paired with a streamlined, automated sales compensation process can stretch success even further. At least that was the case for OSG (now EverView) after they consolidated 35 comp plans into one and adopted QuotaPath’s Salesforce commission tracking integration. 

We’ll get into how OSG’s sales team had the best sales year in company history in a moment. But first, some history.

In August 2020, each member of OSG’s 80-person sales team followed one of 35 sales comp plans. Some of these plans included as many as 12 components. And all of these plans leaders and reps tracked by hand.

Enter Dennis Dube, who joined OSG around this time as SVP of Commercial Operations. Upon his arrival, he helped lead an internal survey to gauge seller satisfaction with OSG’s sales compensation management methodology.

‘Mo comp plans, ‘mo problems

The survey revealed that OSG sellers spent two hours per week manually calculating commissions. Additionally, half of the reps admitted to not understanding their comp plans and how they get paid.

“At the time, sellers didn’t know how much their paychecks would be until they received those checks,” Dennis added. 

That’s what we call in the biz a significant problem. Because, as sales leaders, how can you motivate positive sales behaviors if your reps don’t understand the benefit of doing so? Still, it took one more “final straw” moment for Dennis to ignite change in OSG’s sales commission reporting process.

While traveling with his son on a Saturday afternoon, the operations leader received a panic-stricken message from a coworker.

“The text said that if I didn’t approve a commission calculation within the next hour, then our sellers wouldn’t get paid on time,” Dennis said. 

“It was then that I knew it was time to get a better system in place.”

First up, Dennis and his leadership team restructured OSG’s compensation plans to align with a more strategic selling model. Then, once OSG dropped from 35 plans to eight, Dennis introduced QuotaPath’s Salesforce commission tracking integration to remove manual entry.

The outcome?

The best sales year in OSG history with 70 percent of the team meeting quota and 20 percent meeting 90 percent of quota.

More on OSG’s successes below. 

About OSG

OSG delivers customer engagement and payment solutions through modernized processes and frictionless experiences. Launched in 1992, the company supports customers from education, hospitality, utility, and more. OSG has grown rapidly over the past three years through 20 acquisitions.

Integrated Salesforce commission tracking 

Dennis hoped to find an integrated Salesforce commission tracking solution that could support their projected growth. Their ideal solution would be easy to navigate and user-friendly for sellers.

Furthermore, he and his team wanted a frictionless solution that their Ops department could quickly organize, implement, and update. AKA: scalability. Both Ops and Sales also requested a commission tracking platform that would save time preparing and facilitating sales commission payments.

After exploring a couple of options, Dennis moved forward with QuotaPath in September 2020.

“The ease to get up and running with QuotaPath was a big plus — that and QuotaPath’s real-time Salesforce integration,” Dennis said.

Compensation plan strategy

Comp plans should motivate sales reps and attract the best talent.

If reps don’t understand their comp plan, it becomes a huge roadblock. Instead of driving selling behaviors and rewarding performance, convoluted comp plans slow down teams and discourage reps. This ultimately leads to frustrations across the sales function and eroding trust between reps and leadership. 

So, to address OSG’s confusing comp plan modeling, OSG leadership condensed the plans. They reduced them to eight in 2021 and to one in 2022.

Upon consolidating the plans, Dennis and his leadership team seamlessly added them into Quotapath. By doing so, they provided reps with immediate visibility into their earnings, forecasted commissions, and attainment.

“Our comp plan was easily measured and viewed by our sellers in QuotaPath, which drove positive selling behaviors,” said Ron Morgan, OSG’s Director of Commercial Operations.

(Did you know we offer comp plan strategy consultations? Book a time with Graham here.)

Top-down communication

Another driving force behind OSG’s recent successes involved its top-down communication.

In the months after Dennis started at OSG, leadership focused on establishing a sales culture of accountability and leaned on QuotaPath to help. 

QuotaPath enables sellers to visualize their objectives. Reps can see when they reach 100 percent, how close they are to the next accelerator, and the impact of the next deal. That’s in addition to tracking real-time commissions and forecasted earnings. 

As such, leaders over-communicated the comp plans and the areas the team should focus their efforts. Then they directed reps to QuotaPath to answer their commission questions.

When reps had compensation questions on specific deals, Ron said leadership would ask, “Have you checked QuotaPath yet?” 

Empowering reps to seek out their commission questions while giving them a tool to visualize their success led to a 95 percent daily adoption rate amongst OSG’s 80-person sales team. 

Conclusion

OSG completed a comp plan makeover, increased compensation visibility through QuotaPath, and created a new targeted sales structure. In doing so, OSG achieved its highest sales year to date. If you’re ready to re-think sales compensation and automate commission tracking in a way that actually inspires changed selling behaviors, let’s chat!