Hi there! I’m Graham Collins, Head of Partnerships here at QuotaPath. I’ve spent pretty much my whole career in sales—from leading 40-person sales development teams to heading both Sales and Marketing at QuotaPath—and I can tell you that you need to think about discount strategies as both an art and a science.

Discounting is an integral part of winning deals today especially in software.

But remember that doing so can undermine the value of your product or service.

To do so effectively, you must strike a balance and find innovative ways to “discount” that don’t risk your organization’s revenue (and the value you’ve worked to build with the customer).

In this post, I’ll cover discount strategies so you can close deals without giving away too much or losing control over future revenue opportunities.

Why Discount at All?

First, let’s consider why we offer discounts.

It’s more common than many realize—unless you’re Chili Piper, almost every SaaS business offers strategic, process-driven, or ad hoc discounts. 

This can happen for several reasons (some better than others):

1. Timing Alignment: A client might want to wait on signing, and as reps, we want to hit our targets by EOQ. Discounting can help align timelines.
2. Competitive Pricing: Occasionally, discounts will match a competitive offer, but ideally, this isn’t the main driver.
3. Budget Mismatches: Sometimes, the prospect’s budget falls short. Offering a discount helps bridge that gap without drastically altering the scope of the project.

Discounting as a Tool, Not a Crutch

Still, discounting should be seen as a strategic tool rather than a default move. 

If you start relying on discounts as the primary lever for closing every deal, value and positioning will quickly diminish. 

If your team discounts consistently, it may signal a misalignment between your product’s perceived value and pricing. 

When discounts are routine, customers might start viewing them as an expectation rather than an exception, which can dilute your brand’s value proposition.

This situation offers a crucial opportunity to reassess your pricing model and value positioning. 

For instance, it may be time to refine your messaging to emphasize unique value drivers that set your solution apart. Or, if your product regularly competes in pricing discussions, consider adjusting features at various pricing tiers to more clearly reflect the value delivered at each level.

Ultimately, a well-positioned product should have a price point that feels justified to the buyer, making discounting a helpful but rarely needed tool rather than a requirement. 

Then, when it’s time to offer a discount, you can get strategic about how to do so. 

6 Types of Strategic Discounts

Discounts aren’t one-size-fits-all. 

Here are a few ways to use them that keep long-term value and flexibility intact.

1. Flat Discounts

The flat discount is straightforward and easiest to offer—simply reduce the cost by a set percentage. 

While flat discounts are what customers typically expect, they also pose risks. 

For example, if you reduce the per-user price, it can be challenging to upsell at a higher rate in the future. Customers may also expect that lower price to apply for any new users or add-ons. 

My recommendation? Keep flat discounts as low as possible and ensure your renewal terms clearly state that any additional users will be charged at the original rate.

2. Extended Contract Terms

Offering 3 months free as part of a 15-month contract (for the price of 12) is a great way to keep ARR steady while incentivizing the client to lock in sooner. 

This approach gives the buyer a tangible benefit without impacting the renewal cost. When renewal time comes around, the client pays full price, making it easier to raise prices in the future if needed. Remember to include in the terms that the renewal will return to the standard 12 months.

Alternatively, you can reduce the cost by two or three months but retain the 12-month structure. 

This clearly states that the customer receives a discount now, but future contracts will revert to the standard price.

3. Adding Free Users

If your client’s team is expanding, offering a “pay for 15, get five free” user package can help them onboard additional users while preparing for growth. 

This approach is especially beneficial if the customer is in a growth phase and may add more seats later. While this may limit upsell opportunities during the contract period, it can effectively secure a multi-year commitment or create goodwill with the client.

4. Discounted or Free Implementation

You could also offer discounted implementation fees to reduce the customer’s upfront costs while preserving annual recurring revenue (ARR). 

However, implementation can be costly if you’re not careful, especially if you outsource this work.

If you choose this route, be strategic—consider offering partial discounts or reducing the upfront fee rather than waiving it completely. This way, you maintain margin while helping the customer get started without high initial expenses.

5. Multi-Year Contracts

One of our favorites is the multi-year contract.

Encouraging a client to sign a two- or three-year deal can be a win-win for everyone involved. 

However, since it locks in revenue and provides the client with a fixed rate, you might miss out on potential price increases over time. 

The decision to offer a multi-year discount depends on retention rates. If your churn is high, it might be more valuable to lock in longer terms, even if it means fewer opportunities for price increases.

6. Flexible Billing Terms

Lastly, offer flexible billing terms.

Offering quarterly (even monthly) or delayed billing can be a good alternative to traditional discounting, especially if budget constraints are the issue. With flexible billing, you can accommodate the client’s financial flow without cutting into your ARR.

Give-and-Take Approach

One of the best discount strategies I recommend is adopting a “give and get” mindset when discounting. 

Rather than offering a discount with no strings attached, ask for something in return, such as a case study agreement, logo placement on your site, or favorable contract terms (like no price increase cap). 

When you clarify that discounts come with specific requirements, you create a mutually beneficial relationship rather than simply giving away value.

Navigating Renewal Conversations

Finally, always keep the renewal stage in mind (yes, even if you’re a new biz rep!). 

Whatever discount you offer now will impact future conversations. 

Be upfront with clients about the temporary nature of discounts and how standard pricing will apply at renewal. Building this into the contract terms is essential for setting expectations early and avoiding surprises later.

Drive Value without Compromise

Discounting can be an effective way to close deals, but it should be used strategically. 

The goal is to leverage discount strategies without eroding your product’s perceived value or losing out on upsell potential. 

Remember that discounting is a tool to help you achieve your revenue goals, not a crutch to close every deal. With a thoughtful, strategic approach to discounting, you can close deals that support your long-term business goals and strengthen your client relationships.

As always, if you’re looking to simplify your sales compensation management, QuotaPath can help. We offer tools to track and manage deals, ensuring your reps understand how each contract term impacts their earnings. With better visibility and smarter discounting strategies, you’ll drive sustainable growth and close deals that benefit both you and your clients.

What Is A Sales Performance Report?

A sales performance report is a structured summary of key sales data that measures how well a sales team, individual rep, product, or territory is performing over a specific period of time.

It typically includes metrics like revenue generated, quota attainment, win rates, average deal size, and sales activity. These reports help leaders evaluate team productivity, identify trends or bottlenecks, and make informed decisions about forecasting, resource allocation, and sales strategy.

At its core, a sales performance report turns raw sales data into actionable insights.

Real-time data helps leaders make informed, timely decisions and course corrections. Tools like QuotaPath, which offers real-time reporting features, provide leaders with easy access to the data they need to take appropriate action.

These reports commonly include data such as sales revenue, the number of deals closed, quotas vs. attainment, sales by region, and multi-contributor sales.

Types of Sales Reports

In addition to the many benefits offered, there’s also a variety of sales performance reporting to draw insights from based on what you’re hoping to measure and drive.

Sales Performance Report for Forecasting and Planning

To drive smarter sales strategies and more accurate planning, here are five essential sales performance reports and how each serves a different purpose:

Sales Forecast Report
Predicts future revenue based on deal stage, historical conversion rates, and rep performance. It helps leadership understand whether targets are within reach and if adjustments are needed.

Sales Pipeline Report
Breaks down current opportunities by stage, deal size, and expected close date. It’s a snapshot of what’s in play—ideal for assessing deal health and identifying bottlenecks.

Sales Trend Report
Analyzes performance over time, surfacing patterns like seasonality or month-over-month growth. Use this to inform quota setting and hiring plans based on historical momentum.

Win/Loss Analysis Report
Compares closed-won vs. closed-lost deals, revealing what’s driving success or contributing to drop-off. It’s critical for refining messaging, targeting, and objection handling.

Sales Activity Report
Tracks rep-level actions—calls, emails, meetings—to correlate effort with outcomes. Helps managers identify top performers, coach underperformers, and improve team efficiency.

Key Components of a Sales Performance Report

After choosing which kinds of sales reports best address your needs, it’s time to create your report. What should a written sales summary report look like? Every effective sales analysis report should include the following fundamental components.

• Key Metrics: Depending on the report’s purpose, key metrics typically include measurements such as quota attainment, win/loss ratios, sales velocity, and average deal size.
• Visualization: Tools like graphs, bar charts, and performance dashboards help translate numbers into actionable, at-a-glance insights, making data easier to understand and digest.
• Customizable Filters: Drill down into data to view details for specific periods, teams, reps, territories, products, and deal types, tailoring the report based on the purpose and audience.
• Comparative Data: This is used to compare current performance to past periods, such as year-over-year, quarter-over-quarter, or month-over-month, and identify trends. It is useful for decisions like coaching and compensation planning or optimization.
• Integration Point: Pull in data from multiple sources for up-to-date information that creates a more complete picture. For instance, QuotaPath integrates seamlessly with HubSpot to build reports using CRM and compensation data easily.

Sales Report Example

Here are two sales reports examples using earnings and attainment values, along with descriptions of what they tell about sales performance.

Our Attainment Over Time report highlights which sellers maintain the most consistent performance over a specified period.

For example, in a year-long quota, leaders can track the team’s performance trends across the year, identifying steadiness from month to month.

In the example shown, Marty (indicated by the brown line) consistently reaches 100% of quota, while the rep represented in blue peaks at 250% before dropping to 50% of the target in the following month.

This type of report is ideal for leaders looking to pinpoint seasonal patterns, as it visualizes these trends clearly.

The Earnings vs. Attainment report provides insights into who is generating the most sales and earning the highest commissions, while also revealing any imbalances, such as someone earning significantly more despite lower sales.

On its own, this data might not stand out. But in comparison, you can see that although Ben sells nearly double what Arwen does, Arwen actually earns more in commission.

Why could that be?

This might suggest that Ben frequently sells a product with a lower commission rate, or that Arwen reached her accelerators in Q1 and now benefits from a higher commission rate on each sale for the remainder of the year.

Sales Commission Reports in QuotaPath

See what other sales performance reports and commission analyses QuotaPath offers.

Read Blog

Steps to Build an Effective Sales Performance Report

A well-structured sales performance report helps leadership make faster, more informed decisions. Here’s a step-by-step approach to building one that drives insight and action.

Step 1: Define the Purpose of Your Sales Report

Start by identifying the question your report is answering. Are you forecasting revenue? Coaching reps? Understanding why deals are lost? The goal should guide what data you include—and exclude.

Step 2: Identify Key Sales Metrics to Track

When it’s time to build out your reports, consider leveraging the following sales metrics.

Step 3: Organize and Segment Your Sales Data

Group your data by team, individual rep, time period, deal stage, or region—whatever best aligns with your goals. Segmentation lets you spot patterns, outliers, and performance gaps more easily.

Step 4: Make the Sales Report Visual and Actionable

Use tables, charts, and filters to highlight insights at a glance. Include clear next steps, KPIs, and owner assignments so that your report doesn’t just inform—it drives action.

How QuotaPath Simplifies Sales Reports

QuotaPath takes the complexity out of building and managing sales performance reports. By syncing directly with your CRM and commission data, QuotaPath automatically pulls in the right metrics—like attainment, earnings, and quota progress—so you can skip the spreadsheets and manual updates.

With built-in dashboards, flexible filters, and exportable views, teams can segment performance by role, rep, or time period in just a few clicks. Whether you’re forecasting, reviewing rep productivity, or analyzing plan effectiveness, QuotaPath gives you the clarity and accuracy to act quickly and confidently.

If you’re looking to improve transparency, save time, and align performance tracking with your comp plans, QuotaPath makes it easy. Book a demo today to learn more.

The rise of Product-Led Growth (PLG) has fundamentally transformed how B2B SaaS companies drive revenue.

Companies can nurture product engagement and drive organic growth by allowing users to experience the product firsthand—often through free trials or freemium models. In fact, PLG has been adopted by 58% of B2B SaaS companies as part of their go-to-market strategy​. 

Yet, as effective as PLG can be for scaling, the need for a sales team becomes increasingly critical, especially when converting free users into enterprise-level deals.

While freemium models boast impressive conversion rates—12% at the median, 140% higher than free trials—they are often just the starting point for larger opportunities​. 

That’s why as PLG companies grow, many add a sales-led motion to close bigger deals. 

For instance, nearly 61% of PLG companies launch enterprise sales teams by the time they reach $50 million in annual revenue​. 

This hybrid approach of PLG and Sales-Led Growth (SLG), known as Product-Led Sales (PLS), is becoming essential— which requires strategic alignment and collaboration across your GTM and product teams.

Below, we share 10 best practices for running a combined PLG-SLG motion, offering practical insights to help leaders balance both strategies. By leveraging PLG’s organic growth potential alongside the precision of a sales-led approach, companies can achieve long-term, scalable success.

 10 Best Practices For Running a PLG and Sales-Led Motion

To successfully manage a blended PLG and SL motion, implement best practices that ensure clear data separation, flexible attribution, and cross-team collaboration. 

You can start with these 10 best practices, such as defining separate revenue types and creating distinct pipelines for each motion, to help your teams maximize efficiency and drive growth in both models.

Separate Revenue Streams and Pipelines

Best Practice #1: Define Separate Revenue Types

Track PLG and SLG revenue streams separately. This is a “must” to understand how each model contributes to overall business growth. 

With PLG revenue driven by user-initiated actions such as free-to-paid conversions and SLG revenue driven by traditional sales efforts, maintaining separate streams allows for clearer performance measurement and attribution. 

This separation helps companies identify which motion is more effective in specific market segments and informs resource allocation decisions based on actual revenue impact.

Best Practice #2: Create Distinct Pipelines for Each Motion

Creating distinct sales pipelines for PLG and SLG ensures accurate tracking of deal progress and process management.

For instance, in a PLG pipeline, the focus is on product usage signals, such as trial activations or feature engagement, which trigger actions like sales outreach or automated nudges. 

Meanwhile, an SLG pipeline follows traditional sales stages, from prospecting to closed deals, allowing teams to manage high-touch customer interactions more effectively. 

By holding separate pipelines, you can tailor your strategies to the specific needs of each motion, improving overall operational efficiency and forecasting accuracy.

Building Data Flexibility and Attribution

Best Practice #3: Utilize a Data Warehouse (Optional)

While totally optional, you might want to consider utilizing a data warehouse.

A data warehouse offers flexibility when integrating both PLG and SLG data, enabling companies to combine product usage metrics with traditional sales data in one place. 

This centralized approach helps scale PLG operations by keeping data unified while allowing for more complex analysis, such as tracking product-qualified leads alongside sales-qualified leads. 

Best Practice #4: Establish Clear Attribution and Source Data

Next up, you have to establish clear attribution. 

This is essential for tracking how leads move between PLG and SLG. By mapping different lead sources—whether they originated from product usage or sales outreach—you ensure that each touchpoint is accurately recorded and attributed to the appropriate team. 

Doing so will set your GTM team up to optimize marketing efforts and provide a clearer picture of cross-sell and expansion opportunities, particularly as customers shift between PLG and SLG motions.

Collaborating Across Teams

Best Practice #5: Collaboration Between RevOps, Sales, and Product Teams

Our fifth best practice involves none other than collaboration across RevOps, Sales, and Product teams. This is key.

Sales teams can prioritize high-value PLG leads based on product usage, while RevOps can facilitate smooth transitions between PLG and SLG as customers move from self-service to enterprise sales. 

You should also collaborate with leaders to define clear roles and responsibilities across teams so that no opportunities are lost. 

Best Practice #6: Involve Sales Reps in PLG Feedback

Additionally, remember to source your reps for feedback.

Sales reps are often the first to identify trends and behaviors among PLG leads that may signal readiness for sales engagement. 

Incorporating their feedback into PLG processes allows for more accurate lead scoring, which can help your team prioritize which users receive the proper attention. This feedback loop improves overall conversion rates by fine-tuning how product signals are interpreted and acted upon by the sales team.

Leveraging HubSpot to Manage PLG and SLG Together

Best Practice #7: Using Custom Objects and Deal Types

This wouldn’t be a RevOps-focused article if we didn’t recommend implementing technology to help; this time, we suggest HubSpot.

HubSpot’s custom objects and deal types provide a powerful way to differentiate between PLG and SLG processes.

You can automate actions based on customer behaviors by setting up distinct deal types for product-led and sales-led opportunities. For example, trial users in a PLG motion might trigger sales-assist actions when they reach certain product milestones, ensuring timely outreach from your sales team.

Best Practice #8: Automate Where Possible

If you haven’t realized this yet, automation is generally critical, especially when simultaneously managing PLG and SLG.

You can reduce manual tasks by automating deal creation, lead scoring, and movement based on product usage or engagement signals. A good example of this is found in HubSpot, which can automatically move a deal to “won” or “lost” based on trial outcomes or subscription payments, streamlining your pipeline management.

Starting Simple and Scaling into Complexity

Best Practice #9: Start Simple with Minimal Complexity

Lastly, our final two best practices focus on simplicity and adding complexity as you grow.

When beginning with PLG and SLG motions, simplicity is key. 

Start with a single sales pipeline and gradually layer in more complex automations and deal types as your company grows. 

Focus first on capturing the basic signals of both motions—such as trial conversions and outbound sales—before expanding into more sophisticated tracking and lead management processes.

Best Practice #10: Iterative Improvements

And, of course, iterate.

Based on data and customer behavior, you should refine your PLG and SLG processes. 

Review your performance metrics, conversion rates, and handoff processes regularly to optimize both motions. As your business evolves, make iterative improvements to your systems, automation, and collaboration efforts to keep up with changing customer needs and market conditions.

Seamless Integration for Growth

In conclusion, managing PLG and SLG requires a unified yet distinct approach to ensure that each motion operates effectively while contributing to overall growth. 

By defining separate revenue types, creating distinct pipelines, and fostering collaboration between teams, you can optimize both motions for success. 

Leveraging tools like HubSpot for automation and data tracking further enhances your ability to manage these motions efficiently. 

You can also use QuotaPath to support comp plan creation and automate and manage compensation strategies that drive team behaviors behind your PLG motion and your sellers. (To learn more, schedule time here). 

More than 150,000 customers worldwide depend on Salesforce as their CRM (source).

This number puts Salesforce at the top position in the CRM market, largely due to its comprehensive feature set, robust ecosystem of partners and apps, and commitment to innovation for customers across industries.

Despite this, Salesforce commission capabilities remain a complex problem.

There’s no one-size-fits-all approach, which is pretty classic Salesforce.

Rather, Salesforce commission calculation is a flexible process that can be customized to meet your organization’s specific needs. 

Read on to learn the ins and outs of Salesforce commission tracking. 

What Is Salesforce Commission Tracking?

We’ll start with what Salesforce commission tracking is.

Salesforce commission tracking refers to the process of monitoring and managing sales commissions using the Salesforce CRM platform. 

This involves keeping a real-time record of sales deals, calculating commissions based on defined criteria (like deal size or percentage), and automating payouts for sales reps.

While Salesforce doesn’t offer this out-of-the-box, admins can create custom workflows to streamline the process.

However, the most efficient and accurate way to do this is by integrating Salesforce with a commission automation tool, like QuotaPath.

By adding QuotaPath’s app directly into Salesforce, admins can leverage Salesforce to build detailed reports that track earnings data, including Total Earnings, Earnings by Compensation Plan, and Earnings by Rep according to their Salesforce commission structure.

This data displays directly in Salesforce, offering real-time visibility into how commissions are calculated and earned. Providing sales reps with direct access to their earnings data not only increases transparency but also boosts motivation as they can clearly see how their performance impacts their compensation. (Visit AppExchange to learn more.)

Key Use Cases:

Simplifying Commission Calculations: Salesforce with commission tracking tools automate the calculation of commissions based on pre-set rules, such as percentage of deal value, specific product sales, or tiered commission structures. This removes the need for manual tracking, reducing the risk of human error.

Automating Processes: With payout eligibility rules set in the commission tracking platform that’s integrated with Salesforce, you can automatically trigger commission payments once a deal is marked as closed. This ensures timely and accurate payments, boosting morale and trust among the sales team.

Reducing Errors: Centralizing commission tracking within the CRM eliminates the need for spreadsheets and manual data entry, leading to fewer mistakes in calculating commissions.

These features ultimately allow businesses to increase the efficiency and accuracy of their commission structures, keeping sales teams and management aligned on performance and goals.

How Does Salesforce Track Commissions?

While Salesforce doesn’t have a built-in commission tracking module, several effective methods for managing commissions within the platform exist.

Here are the primary approaches:

1. Custom Commission Objects:
   
   • Create custom objects to store commission-related data, such as commission amount, commission type, and payment schedule.
   • Use custom formulas to calculate commission amounts based on specific criteria automatically.
     
2. Third-Party Apps:
   
   • Explore the Salesforce AppExchange for specialized commission tracking apps like QuotaPath, Spiff, Performio, and Xactly. These apps often provide advanced features, real-time data, and in-depth reporting.
     
3. In-House Administration:
   
   • Leverage Salesforce’s built-in features and formulas to calculate commissions manually. This approach requires technical expertise and can be time-consuming.

Beyond Calculation:

Salesforce commission tracking can be used for more than just calculations. You can also:

• Create commission schedules: Define payment terms and frequencies.
• Assign commission schedules: Associate specific schedules with individual salespeople or teams.
• View commissions in quotes, policies, and producer records: Track commission information across various Salesforce objects.

By effectively managing commission tracking in Salesforce, you can streamline your sales operations, ensure accurate payments, and gain valuable insights into your sales team’s performance.

EverView cleans up commissions with QuotaPath’s Salesforce Integration

SaaS company achieved record sales in 3 months following QuotaPath implementation. Leaders cite “rep visibility” into earnings and comp plans as key reason why.

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How Does Salesforce Calculate Commissions?

Although Salesforce doesn’t offer a built-in commission calculation module, you can either create custom objects and formulas to calculate commissions manually, or use third-party apps from the AppExchange that specialize in commission tracking.

Steps to Calculate Commissions in Salesforce:

Benefits And Limitations Of Using Salesforce To Calculate And Track Commissions

Overall, Salesforce is a powerful tool for calculating and tracking commissions. 

However, it’s important to weigh the benefits and limitations to determine if it’s the right solution for your organization. If you have a complex commission structure or limited technical resources, you may want to consider a specialized commission tracking app.

Benefits:

• Customization: Salesforce allows you to create custom objects and fields to tailor your commission tracking to your specific needs.
• Integration: Salesforce integrates seamlessly with other sales tools and systems, providing a comprehensive view of your sales data.
• Automation: You can automate commission calculations using workflows and formulas, reducing manual effort and errors.
• Reporting and Analytics: Salesforce offers powerful reporting and analytics tools to help you visualize commission data and identify trends.
• Scalability: Salesforce can handle the needs of businesses of all sizes, from startups to large enterprises.

Limitations:

• Complexity: Setting up and maintaining a custom commission tracking system in Salesforce can be complex, especially for organizations with complex commission structures.
• Third-Party App Costs: If you use a third-party app for commission tracking, you may incur additional costs.
• Limited Out-of-the-Box Functionality: Salesforce doesn’t have a built-in commission tracking module, so you’ll need to configure it yourself or use a third-party app.

FAQ

What is Salesforce?

Salesforce is a leading customer relationship management (CRM) platform that helps businesses manage interactions with their customers and clients. It provides a centralized database for storing customer information, tracking sales activities, automating marketing campaigns, and managing customer service interactions. Salesforce has become a popular choice for businesses of all sizes due to its flexibility, scalability, and extensive ecosystem of partner applications.

Founded in 1999, Salesforce launched its initial CRM product in 2000. Since then, the company has experienced rapid growth and adoption with over 150K customers and north of 20% marketshare. 

What tools should you use for commission tracking?

For effective commission tracking, consider these tools:

• QuotaPath: A specialized tool designed for commission tracking and management, offering features like automated calculations, real-time reporting, and integration with popular CRMs like Salesforce and HubSpot that put commission data directly in your CRM. Recognized for its ROI, support, and platform adaptability to accommodate changes throughout the year. 
• Xactly: A dedicated commission tracking and sales performance management platform with advanced features specializing in enterprise customers.
• Spiff: Another specialized commission tracking tool,Spiff provides features for automating commission calculations, tracking sales performance, generating reports, and managing sales incentives

At this year’s HubSpot INBOUND conference, our very own Graham Collins, Head of Partnerships at QuotaPath, had the opportunity to join a fireside chat at the Hapily booth. Surrounded by the warmth of a (very real) campfire, the discussion focused on one of the most critical areas for sales teams: supercharging the quote-to-cash process on HubSpot.

Graham was joined by:

• Anand Narasimhan, CTO at S-Docs
• Dax Miller, Co-founder & Chief Care Officer at Hapily
• Max Cohen, Chief Evangelist at Hapily

The panel explored the intricacies of managing quotes, contracts, and commissions, and how integrating these processes within HubSpot can significantly enhance sales team efficiency.

If you missed the fireside chat, check out the full video below. You’ll get a deeper dive into how QuotaPath, S-Docs, and Hapily are transforming the quote-to-cash experience on HubSpot.

Fireside Chat: Recap

Why Integrate Quote-to-Cash into HubSpot?

The discussion began with each panelist sharing why their tools were designed to streamline sales processes on HubSpot. A few key themes emerged:

• Enhancing Sales Team Productivity: The goal is to make things easier for sales reps. By automating tasks like generating quotes, managing contracts, and calculating commissions, sales teams can focus on what they do best—selling.
• HubSpot as the Central Hub: QuotaPath, S-Docs, and Hapily all leverage HubSpot’s architecture to deliver a cohesive, streamlined experience for users.
• Custom Solutions for Unique Needs: Each tool offers flexibility, allowing sales teams to tailor workflows, processes, and data handling to fit their specific requirements.

Key Takeaways from the Fireside Chat

1. AI’s Role in Sales: The panel delved into the potential of AI and autonomous agents. AI’s ability to predict commission outcomes, assess deal probabilities, and suggest optimized actions could have a major impact on sales strategies.
2. Native Integrations for Better Adoption: It’s essential to ensure that these tools feel native to HubSpot. This seamless, familiar interface encourages faster adoption and smoother processes for sales teams.
3. Navigating Integration Challenges: The panelists all shared stories of hurdles faced during development—whether it was adapting to HubSpot’s evolving APIs or making last-minute pivots. These experiences highlight the innovative spirit required to build in the HubSpot ecosystem.
4. Why HubSpot is Ideal for Quote-to-Cash: HubSpot’s all-on-one approach offers a user-friendly, unified platform that makes the quote-to-cash process more efficient. Centralizing these workflows on HubSpot improves speed, adoption, and the overall sales experience.

Looking Ahead: The Future of Quote-to-Cash on HubSpot

With HubSpot’s ecosystem continuing to evolve, so are the tools that support it. New APIs, expanded integrations, and ongoing innovations are making the quote-to-cash process faster, smarter, and more efficient. We’re excited about what’s next as we work to empower sales teams to drive more revenue with less friction.

When evaluating and improving a sales team’s effectiveness, you need data – and you need to incentivize it. Data analysis using sales performance analytics helps businesses align their incentives with the overarching company goals. This means that sales teams’ efforts contribute directly to the organization’s success. 

This is a win-win for everyone: sales teams are motivated and productive, working together to reach the wider company objectives. However, the challenge lies in turning this data into actions. Let’s explore how sales performance analytics can be used for individual, team, and organizational success. 

What Is Sales Performance Analytics?

First, let’s define sales performance analytics.

Sales performance analytics is the process of using data insights and analysis to assess the performance of sales teams (and individuals within those teams) with a view to improving their effectiveness.

For sales performance analysis, you’ll need to examine the following key metrics, among others:

• Conversion rates: The percentage of leads that resulted in a closed sale.
• Revenue generated: The total income generated during the period. 
• Customer acquisition costs (CAC): The total cost incurred to acquire a new customer (e.g., marketing costs, sales costs, and other expenses).
• Average deal size: The average value of each sales deal.
• Sales cycle length: The average time a sales prospect takes to move through the sales funnel. 

By analyzing these metrics, business leaders can identify individual and team strengths and areas for improvement. They can then use this knowledge to create a sales incentive program.

What Are The Benefits of Sales Performance Analytics?

Next, let’s look at the benefits of sales performance analysis.

Informed Decision-Making

With sales performance analytics, decisions are based on data, which means you’re not just going on a hunch. The choices businesses make are more accurate and effective, and initiatives are more likely to succeed. For instance, if data shows that specific sales tactics lead to higher conversion rates, managers can concentrate on these strategies and confidently allocate resources.

Enhanced objectivity

Sales performance analytics provides a clear, non-biased view of how individuals and teams compare. This makes for a fair environment because performance is measured consistently against the same metrics. By evaluating performance objectively, top performers are easier to identify – and it’s also easy to understand what factors have contributed to their success so they can be replicated across the team. 

Identification of Skills Gaps and Areas for Development

Performance data analysis means organizations can pinpoint specific skills gaps that can then be targeted by training. If, for example, data shows that a team isn’t great at closing deals, leaders can set up specific training to improve this area. This means that training resources are used effectively and where they’re most needed. 

In addition, performance metrics also show where individuals or teams can improve. For example, if a team is struggling at a specific point in the sales funnel, training can be targeted to address it. 

Better Motivation for High Performers

Employees who perform well receive recognition, which is highly motivating. When sales representatives are acknowledged for their efforts with rewards and recognition, it boosts morale and encourages them (and their peers) to keep doing the same.

Improved Resource Allocation

Sales performance analytics allows resources to be allocated optimally. Leaders can find out which team members (and strategies) yield the best results. With this knowledge, businesses can focus on these areas and avoid wasting resources on underperforming strategies.

Strategic Planning

Sales performance insights help business leaders understand trends and spot patterns in sales data. This means they can plan their strategies to adjust to potential market changes. Being proactive like this means they stay ahead of the competition and can better capitalize on emerging opportunities.

The Connection Between Sales Incentives and Wider Company Goals

Organizations should align their sales incentives with the broader company objectives to create a cohesive business strategy. When these are closely tied, it means that sales teams’ efforts directly contribute to the business’s strategic objectives. As such, everyone is working towards common goals in a unified direction. 

Motivation and Direction

Aligning sales incentives means that sales teams are motivated to achieve goals directly contributing to the organization’s success. This alignment shows there is a clear sense of purpose and direction. For example, if the company wants to increase market share in a specific region, aligning sales incentives to this will motivate the team to prioritize this area.

A More Collaborative Approach

When everyone is working towards the same goals, there are also plenty of opportunities for departmental collaboration. These integrated efforts mean better cohesion and more cooperation in the organization. 

Marketing, sales, and customer service teams can work together to achieve their shared goals, improving productivity and higher sales volumes. In smaller businesses, seeking support from professional marketing agencies may be beneficial. Although these companies will have different goals, they should still work towards yours. 

Resource Optimization

When sales incentives align with company goals, resources and decisions are focused on the right things. Ultimately, this alignment is better for long-term growth and profitability. For example, if increasing the sales of a high-margin product is a company goal, aligning sales incentives with this will drive efforts toward promoting and selling that product.

Integrating advanced payroll solutions ensures these incentives are executed smoothly, aligning payouts with actual sales achievements and maintaining morale among sales teams.

Long-term Growth and Profitability 

Business growth is more sustainable when sales strategies and efforts align with company objectives. Sales teams build stronger customer relationships, and customers are more satisfied. This increases customer retention and contributes to the company’s long-term success and profitability. 

Best Practices: How to Use Sales Performance Analytics to Align Sales Incentives with Company Goals

Here are some best practices to follow if you want your sales incentives to align with your company goals.

1. Define Clear Objectives

Before sales incentives can align with company goals, it’s important to ensure the objectives are well-defined. These should be SMART targets—in other words, specific, measurable, achievable, relevant, and time-bound. 

Here is an example of a SMART target:

GOAL: Increase Monthly Sales Revenue

• Specific: Increase monthly sales revenue by targeting new customer acquisitions and upselling to existing customers. 
• Measurable: Achieve a 20% increase in monthly sales revenue. 
• Achievable: Based on past performance and market analysis, a 20% increase is challenging yet attainable. 
• Relevant: Increasing sales revenue supports the overall growth strategy and financial targets. 
• Time-bound: Achieve a 20% increase within the next six months.

2. Use Advanced Customer Relationship Management (CRM) Systems

CRM systems help manage and analyze customer interactions. They provide information about behaviors, preferences, and customer buying patterns. All of this data can be used to develop sales strategies.

Through CRM systems, businesses can segment customers based on:

• Demographics 
• Purchase history
• Engagement levels

This helps businesses tailor their sales incentives to focus on acquiring and retaining the most valuable customers.

Additionally, integrating a modern website builder can enhance these strategies by providing a seamless, user-friendly online platform. This aids in effectively presenting products or services and facilitates more accessible customer interactions, further driving sales and improving conversion rates.

3. Leverage Business Intelligence (BI) Tools

Business Intelligence tools collect, analyze, and present business data, which businesses can use to glean meaningful insights. 

These tools can then perform a range of analyses on the data, including:

• Descriptive analytics: A summary of historical data that identifies trends. 
• Diagnostic analytics: Looking at past issues or outcomes to identify their causes. 
• Predictive analytics: Forecasting based on historical data. 
• Prescriptive analytics: Recommendations based on insights. 

Artificial intelligence (AI) technologies power many BI tools. AI is used heavily in e-commerce online stores, and its abilities are growing exponentially. AI-driven predictive analytics allow businesses to forecast with more accuracy. The insights garnered mean brands can personalize their services and customers’ experiences too. 

AI also takes a lot of the repetitive work away from humans so they can focus on more complex tasks like strategic planning. AI in e-commerce is still in its infancy, and it’s something to follow with interest in the coming years. 

4. Use Data Engineering Platforms

Another tool for sales performance analytics is using a data engineering platform. This helps by:

• Integrating data sources: Data can come from CRM systems, marketing platforms, and transaction databases.
• Processing and analyzing data: The data engineering platform can process complex data. It can cleanse, transform, and aggregate information to a high, consistent quality.
• Providing actionable insights: This is enabled by machine learning algorithms and predictive analytics in real-time. 
• Supporting scalability: A data engineering platform can handle large amounts of data, which is great for growing businesses.  

When choosing a data engineering platform, look for one that offers interactive demos. These demos allow teams to experience firsthand how the platform works, making it easier to understand its features and benefits in a practical setting.

Ultimately, combining a data engineering platform with other analytics tools means that sales performance analytics are more accurate and in-depth. Real-time actionable insights from these platforms can help inform incentive structures to maximize their effectiveness.

5. Optimize Supply Chain with Analytics

Supply chain optimization tools can work with sales data to deliver insights into:

• Supply chain efficiencies
• Inventory management
• Logistics optimization.

This enhances sales performance analytics by streamlining business operations and allowing for more efficient resource allocation. This integration gives businesses a comprehensive view of supply chain dynamics and how they affect sales outcomes. With this, stakeholders can make better decisions and strategically plan their sales incentives.

6. Focus on Key Performance Metrics

You have your data sources and tools that gather it all together, but what will you measure? For example, if a business has a high lead conversion rate, sales and marketing strategies are effective, suggesting that incentives aligned with these are successful.

Here are the most valuable metrics for sales performance analytics:

• Sales Growth: How much sales revenue has increased over the specific period being analyzed. This is useful because it shows the business’s overall progress and health. 
• Sales Target Achievement: This describes the extent to which sales goals are met, helping businesses evaluate the effectiveness of their sales strategies.
• Lead Conversion Rate: This is the percentage of leads that convert to paying customers, and it reflects the quality of marketing efforts and the efficiency of the sales process.
• Customer Acquisition Cost (CAC): This helps assess the profitability of marketing and sales efforts because it describes the total cost of acquiring a new customer.
• Customer Lifetime Value (CLV) helps businesses understand the long-term value of their customers so they can allocate resources better. Essentially, it tells you the total revenue a business expects from a customer (from repeat purchases over their lifetime).
• Win Rate: This describes the percentage of successful sales from opportunities, showing how effective a sales team is. 
• Churn Rate: The churn rate gives information about customer satisfaction and retention. It describes the percentage of customers who have stopped doing business with the company. 
• Sales per Representative: This is useful in sales performance analytics because it evaluates individual performances. It also highlights where training needs are. 

7. Use Data Streaming for Real-Time Insights

Many sales performance analytics solutions discuss data streaming. So, what is streaming data? Essentially, it refers to the continuous, real-time data information you get from your data sources. These could be your social media feeds, website interactions, or even sensor or IoT devices. 

The information garnered gives immediate insights into sales activities and customer interactions as they happen. This enables businesses to adjust their sales strategies and incentives dynamically, ensuring they remain relevant and effective. 

8. Ensure Teams Have the Relevant Training

Sales teams also need comprehensive training on any tools used in the sales performance analysis process. This should include training on:

• Product knowledge
• Sales techniques
• Specific products or tools, like customer relationship management systems, business intelligence tools, and even phone services for small businesses. 

Conclusion 

Sales performance analytics is an essential tool for a modern sales team. With data sourced from various sources, businesses can verify that their sales efforts are contributing to the company’s overall success. 

When sales incentives align with the overarching objectives, you’ll likely see a more motivated and productive sales team. The key to achieving this lies in transforming the insights garnered from data into usable strategies. 

With advanced technologies and a culture of clear communication, businesses can optimize their sales processes so that everyone is working towards the same objectives. And in doing so, the business is more likely to see sustained growth and profitability. 

Most people are so overexposed to traditional selling techniques they’ve become masters at tuning them out. Cold calls are immediately blocked, and generic email blasts get left unread in the depths of countless inboxes. It is the old adage of throwing mud at a wall and hoping something sticks – wearying for both the seller and the buyer. 

A more respectful and targeted approach is needed, and that’s the purview of signal-based selling. Rather than casting a wide net, this technique zeroes in on the most promising buyer candidates. It means monitoring customer behavior to know when to contact them with a personalized approach.

This can do wonders for sales conversion rates. In this article, we will cover every aspect of signal-based selling to help you leave the guesswork behind and start leveraging a data-backed approach that works.

What Are Buying Signals? 

They are the digital clues potential customers leave online, giving you the heads-up that they’re interested in buying what you’re selling. They come in numerous forms, each offering insight into where they might be in their journey to becoming a paying customer.  

Some signals indicate a much stronger intent to purchase than others, and therein lies the beauty of signal scoring. Assigning numerical values to different signals means you can prioritize effectively and focus on the most promising prospects, especially when you want to speed up your inbound lead response time. 

For example, a demo request, which signifies a very high interest in your product, might be worth 10 points. On the other hand, attending a webinar, which isn’t such a strong signal, might be worth 5 points. 

With this approach, you can build a hierarchy of signals, giving your sales team a solid framework to prioritize leads. What point values you assign is highly dependent on your industry and sales cycle, but the principle is always the same: focus on those signals that will most likely lead to a conversion. Let’s look at some examples of common buying signals.

Free to use image sourced from Unsplash

Intent Signals

Intent signals are the clearest indicators that someone is actively seeking a solution to a problem. Suppose, for example, they start using the free teleconference call services that you provide – there are a few signs that may indicate readiness to upgrade to your paid version. 

Have they been consistently using the software for a certain period, demonstrating a reliance on its features? Are they encountering limitations of the free version, such as storage caps or user restrictions? Or, perhaps they visited your pricing page multiple times, comparing features or exploring different plans. 

All are strong intent signals that they may be considering upgrading. This is just one example, but other indicators (which website analytics can provide) include when someone lingers on some specific web pages, like pricing or case studies.

Engagement Signals

How are prospects interacting with your brand across multiple channels? While engagement signals are not as strong an indicator of purchase intent as intent signals, they are still good barometers of a prospective customer’s interest. 

For example, TikTok has emerged as a potent marketing platform, enabling brands to engage with audiences in dynamic and interactive ways, which can strongly signal a prospect’s interest. 

If a prospect takes the time to open your emails and links regularly, you know they’re engaging more than someone just glancing at the subject line. Likewise, if they share your LinkedIn posts or comment on your Instagram page, it’s a good sign they’ve got a deeper level of interest in – or, at least, connection with – your brand. 

Keeping track of these metrics allows you to better grasp a prospect’s engagement level and make decisions about follow-up communications accordingly. As a result, you have a better chance of putting your efforts in the right places and converting new customers. 

Demographic/Firmographic Signals

Targeting the most promising prospects is easier when you clearly understand who they are and what they want.  

Take, for instance, an online recruitment platform that offers a premium membership for job seekers, which includes job hunting extra features and tools that help to build a portfolio and create a CV. In this case, signals like a user’s recent graduation date, years of experience, or current job title can indicate their career stage and aspirations.

A recent graduate might be more interested in entry-level positions and career guidance, while a seasoned professional might seek executive roles or career advancement opportunities. With these demographic signals, it’s possible to tailor messaging effectively so the most relevant features and benefits are pitched for each user segment. 

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Negative Signals

Not every lead will work out, so it’s helpful to gauge when the time is right to churn customer prospects. Negative signals can help, raising red flags that save you from wasting valuable time and resources on a lost cause. 

If a prospect never opens your emails, that’s a good indicator that their interest is minimal. Likewise, if they frequently leave your landing pages shortly after arrival, resulting in a high bounce rate, you know the content isn’t grabbing their attention. 

Monitoring these and other negative signals can help you eliminate leads that are unlikely to convert, allowing you to focus your energies on those who are genuinely interested in what you have to offer. 

Building Your Signal-Based Selling Framework 

A successful signal-based selling strategy requires synchronizing your sales efforts with your customer’s buying journey. This framework involves three key steps: refining your ideal customer profile, selecting the right signal sources, and defining a dynamic sales playbook.

Step 1: Identify Your Ideal Customer Profile (ICP)

Who is your ideal customer? You need to know this if you want to achieve optimal signal-based selling. This means building a more detailed picture than basic demographics, such as industry and company size. 

Take a look at how your successful conversions came about. What actions did those customers take before purchasing? For example, did they spend a lot of time on particular pages? This knowledge will help you uncover those signals that represent a high intent to buy. 

On the other hand, while you can learn a lot from your successes, you can learn just as much from those times when things didn’t work out. Analyze past times when you almost closed the deal, were there any negative signals? Or, any similarities among those leads who failed to convert? Use this information to refine your ICP and stop wasting time on the wrong prospects.

Step 2: Choose Your Signal Sources

The modern sales tech stack offers a variety of tools to capture and analyze buying signals to boost sales effectiveness. Each tool has its strengths and weaknesses, so it’s important to choose the right combination for your specific needs and goals.

Marketing Automation Platforms: Track website activity to capture intent signals, such as page views and downloads, with platforms like Marketo and HubSpot.  

Sales Intelligence Tools: Get an insider view with tools like ZoomInfo and LinkedIn Sales Navigator, which monitor company and contact data, such as job changes and funding rounds. 

Intent Data Providers: Platforms like Bombora and G2 aggregate data from various sources to highlight companies actively researching specific topics or solutions. 

Internal Data: Your CRM system is a treasure trove of customer data. Make sure your data is clean and integrated with other systems for signal-based selling to be most effective. 

Step 3: Define Your Sales Playbook

Your sales playbook should be tailored to your ICP and sales cycle, guiding how your team responds to different buying signals. If you offer a communications platform, a high-intent signal like an online video meeting booking for a video conferencing tool should trigger an immediate and personalized outreach. 

Meanwhile, other signals, like a white paper download, might start a nurture email sequence, providing additional content and inviting the prospect to related events. What you need is a playbook that is both comprehensive and flexible, so your team can respond effectively to a wide range of signals. 

As you understand how signal-based selling works in your company and learn the best approach, you can keep refining your playbook to reflect your customers’ needs and behaviors. 

Implementing Signal-Based Selling in Practice

Having a plan and the right tools is only the start; next, you have to put it all into practice. Here’s what you need to know about weaving signal-based selling into your sales and marketing operations. 

Technology Integration and Reliable Data

For signal-based selling to achieve its potential, you need data to flow uninterrupted to wherever it’s needed. This often involves using APIs or custom tools to automate the flow of data so your sales team has the relevant information at their fingertips. However, some difficulties can crop up. 

For example, potential data silos not only make internal audit functions more challenging but also make it difficult to consolidate and analyze information for signal-based selling. 

Inconsistent data formats can also hinder smooth integration. To ensure reliability and accuracy, your data needs careful cleaning and standardization so that all data points are in a consistent format and structure. 

Sales Team Alignment

When you first introduce signal-based selling, there’s a chance you may encounter some resistance from the sales team. The best way to combat this is to engage openly with any concerns and clearly communicate the potential benefits.

If your team understands how much more efficient signal-based selling is and that it generates higher-quality leads, they’ll be more likely to fully adopt it. Training is also integral to team adoption so they feel confident about different signal sources and the new playbook for taking action. 

Content Strategy

Think creatively and branch out from simple lead magnets; consider interactive content like calculators, quizzes, or assessments that capture valuable intent signals. 

Tailor website content based on visitor behavior, use data to personalize your email subject lines, and serve recommendations that will nudge them closer to the sales finish line. 

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Advanced Signal-Based Selling Techniques 

These are the cutting-edge technologies that take signal-based selling to another level – and boost your conversion rates. 

Predictive Analytics

You may already be using the best outbound call center software, but if you’re not using the data you gather from it, it won’t be much use. To remedy this, start leveraging technologies such as AI-powered predictive analytics.

Machine learning algorithms make short work of analyzing vast amounts of signal data and can help you build a more accurate sales pipeline forecast. This can make it even easier to detect the potential customers who are most likely to convert so that you can focus your efforts wisely. 

However, it’s important to remember that these algorithms are by no means perfect. They are a great tool to help inform your decision-making, but they should not replace it. Human judgment and intuition are necessary for interpreting data and making sound sales decisions.

Account-Based Marketing (ABM)

Account-based marketing, supported by business marketing software tools, targets specific, high-value accounts with personalized campaigns. Incorporate buying signals into your ABM strategy to further tailor your message and outreach. 

This will enable you to target specific stakeholders within an account based on their signals. Tools like 6sense and Terminus combine ABM and signal-based features, allowing you to orchestrate highly targeted campaigns that resonate with your ideal customers.

Real-Time Personalization

When you have plenty of rich signal data, one of the quickest ways to use it is with real-time personalization. Integrate website personalization tools, such as Optimizely or VWO, with your intent data and other signal information. You will then be able to serve your website visitors with content that is most appealing to them. 

This level of personalization also means more engagement and, subsequently, more conversions. However, it’s important to strike a balance between personalization and respecting user privacy. Be clear about how you’re using data and always provide the choice to opt out of tracking if they wish.

Signal-Based Selling: Watch Your Conversion Rates Soar

Wasting time on dead ends and fruitless prospects was once inevitable for any sales team. However, while sales work will never mean a 100% success rate, you can greatly improve your conversion odds with signal-based selling. 

This technique gives you the data you need to make the right decisions at the perfect time, targeting the most likely potential buyers just when they are ready to bite. It means less time chasing the wrong leads and conversion rates that trend upwards. 

 Fifty-eight percent of B2B organizations don’t consider their sales territory mapping efforts effective, according to Sales Management Association (SMA) research. The study found that these organizations fell short of 3 key indicators of effectiveness:

• Securing accurate data inputs
• Leveraging the right technology
• Redesigning territories with appropriate frequency

This ineffective sales territory mapping is costing them dearly since thoughtful sales territory optimization and mapping have been found to drive a 10-20% increase in sales. That’s only one of several reasons to improve your sales territory mapping efforts.

Why Sales Territory Mapping Matters

There are many benefits to investing the time and effort in improving your sales territory mapping.

Optimizes Sales Coverage: Effective territory mapping ensures that all potential customers and market segments are adequately covered, preventing missed opportunities. It also helps maximize sales efficiency by allocating resources where they are most needed.

Balances Workloads Among Sales Reps: Territory mapping distributes leads and accounts evenly among sales reps, avoiding overburdening some reps while underutilizing others. Balancing workloads helps maintain morale and reduce burnout among the sales team.

Improves Customer Relationships and Satisfaction: Well-defined territories allow sales reps to focus on building stronger relationships with customers within their assigned areas. This facilitates consistent, localized attention that can lead to higher customer satisfaction and loyalty.

Aligns with Business Goals and Strategies: Mapping territories strategically aligns sales efforts with the company’s broader goals, such as expanding into new markets or increasing market share in specific regions. It can also support targeted sales campaigns and marketing efforts by focusing on specific geographic or industry segments.

Enhances Sales Performance and Productivity: Territory mapping helps identify high-potential areas and allocate the best resources to maximize sales opportunities. Clear territories can reduce internal competition and conflicts, leading to a more collaborative and product sales environment.

Facilitates Performance Tracking and Analysis: Well-defined territories make it easier to track performance metrics and analyze data by region or rep. This enables quick identification of underperforming territories, facilitating data-driven decisions to adjust strategies or resources.

Supports Fair and Effective Compensation Planning: Territory mapping contributes to fair compensation by ensuring that sales reps have equitable opportunities and resources. This, in turn, prevents disputes over lead ownership and sales credit, creating a more transparent and equitable environment.

Aids in Resource Allocation and Planning: Territory mapping helps efficiently allocate resources such as sales support, marketing efforts, and travel budgets. It allows companies to plan for growth by identifying where to expand sales teams or add new reps.

Key Components of Effective Sales Territory Mapping

Here’s what it takes to gain the many advantages of optimizing your sales territories.

Steps to Create a Sales Territory Map

Leverage these steps to build an effective sales territory map. 

1. Define, analyze, and segment your market: Segment customers by characteristics such as industry, location, or purchase history. Sort each segment by the level of effort required. Then analyze sales data for each sales territory to identify key trends to help match them to the rep most likely to be effective there based on the strengths you identify in the following SWOT analysis.
2. Conduct a SWOT analysis: A SWOT analysis allows you to identify internal and external factors that influence your company’s performance. Assess the sales team’s strengths and weaknesses collectively and individually. Then identify marketplace opportunities such as untapped markets, under-served territories, and growing demand for your product or service. Finish the analysis by looking at the greatest selling threats in each territory such as competitors or new regulatory standards.
3. Establish clear goals and realistic targets: Based on the identified trends, threats, and opportunities, set goals and milestones for the sales team and reps. Things to consider include: 

• The number of opportunities you need to meet quota
• Which geographic regions produce the most leads
• Which product or service is most profitable and who purchases them
• Which opportunities to prioritize.

4. Determine strategies to achieve your goals: Now, you have sufficient information to distribute regions or markets evenly across the sales team. The SWOT analysis helps you assign the best reps for each territory based on their strengths. Then, consider how you will support your sales team’s efforts to achieve their goals, such as generating leads and offering resources.
5. Continuously monitor results: Sales territory mapping is an ongoing process. It routinely reviews and tracks results to help keep the territory map aligned with market and business changes by adjusting it accordingly. Key metrics to monitor include sales growth, sales rep performance, and territory costs.

Common Challenges

As SMA found in their study, accurate data, the right technology, and revision frequency greatly impact sales territory mapping effectiveness. Skipping a key step in the process can also limit your results. Being aware of these common challenges will help boost your territory mapping effectiveness.

Unequal Distribution of Opportunities

Poorly defined territories can result in uneven account, opportunity, and lead distribution, overloading some reps while others are underutilized. Unequal opportunity allocation can lead to poor morale, decreased motivation, and reduced performance.

Territory Overlap and Internal Competition

Problems can arise when territories overlap, leading to conflicts between sales reps over customer ownership and sales credit. This type of internal competition negatively impacts the team, creating a divisive sales environment and detracting from collaborative efforts.

Inaccurate or Outdated Data Usage

Relying on inaccurate or outdated data when defining territories can lead to misalignment with current market conditions or customer bases. Therefore, up-to-date and comprehensive data ensures territory relevance and effectiveness.

Inflexibility in Territory Design

Rigid territory boundaries can hinder adaptability in response to market changes, such as new competitor movements or shifts in customer demand. However, dynamic territory planning allows for regular updates and adjustments.

Misalignment with Business Strategy

Territories that don’t align with the company’s strategic goals, such as market penetration or targeting new verticals, can reduce sales effectiveness. Aligning territory design with business objectives drives growth.

Overlooking Sales Rep Skills and Strengths

Assigning territories without considering sales reps’ specific skills, experience, or strengths, leads to suboptimal performance. However, matching territories to rep competencies results in better sales outcomes.

Inconsistent Territory Management Practices

A lack of standardized practices for territory management can lead to confusion and inconsistency in execution. Implementing clear guidelines and regular training helps by ensuring uniformity in territory management.

Resistance to Change from Sales Team

Changes in territory assignments can lead to resistance or pushback from the sales team, especially if they feel the changes are unfair or poorly communicated. Manage change effectively by preparing and implementing a proper communication plan to introduce changes. Taking the time to explain how territories have changed and why and how each rep will be impacted is essential to gaining team buy-in. Also, allowing reps the opportunity to get answers to their questions boosts trust and morale.

Insufficient Performance Tracking and Feedback

Not having adequate systems for territory performance analysis and gathering feedback from the sales team can hinder effective sales territory mapping. Robust tracking and feedback mechanisms are essential for continuous sales territory optimization.

These common challenges stem from SMA’s findings. However, you can proactively address these issues through strategic planning, data-driven decisions, and continuous improvement.

Tools and Software for Sales Territory Mapping

Here are a few of our favorite sales territory mapping tools. 

• Gradient Works
• Workday
• Anaplan
• AlignMix
• EasyTerritory

Tailor Comp Plans by Territory

To boost sales productivity by up to 20%, improve the effectiveness of your sales territory mapping efforts. You can accomplish this using consistent process, strategic planning, data-driven decisions, and continuous improvement.

QuotaPath partners with companies to tailor comp plans per territory and automate commission management. To learn more, schedule a time with a team member.

Recruiter compensation plans often depend on the type of recruiter.

For instance, an organization might outsource recruiting to external recruiters employed by an agency, or they may have a dedicated recruiter in-house/

Like sales reps, external recruiters are typically paid according to their performance. They receive a base plus commissions and other incentives when they fill open positions or their new hires complete their probationary period.

By contrast, the compensation structure for internal recruiters does not include a variable pay component. However, regardless of the type of recruiter, the compensation structure is essential for attracting and retaining top talent.

Designing effective recruiter compensation plans requires balancing short-term and long-term incentives. Otherwise, agents will likely focus on filling roles quickly without considering the long-term impact of hiring the wrong candidate.

Selecting the right metrics to measure success can motivate behaviors that fail to drive outcomes aligned with organizational goals. For instance, the number of hires may not accurately reflect the quality of a candidate or the recruiter’s impact on team performance.

Of course, compensation plans should be fair and equitable across recruiting teams and roles to ensure retention, while remaining competitive ensures attracting and retaining the best talent.

Not sure how to achieve this balancing act? We’ve got you.

This blog provides best practices for creating a competitive and motivating recruiter compensation structure.

Key Components of a Recruiter Compensation Plan

Let’s start with the must-haves of a competitive and motivating recruiter compensation model.

Base Salary

Setting a recruiter base salary is also a balancing act. If it’s too high, agents will not be motivated to achieve their targets. On the other hand, a low base salary may be less attractive as it offers less income stability, which is especially important for candidates paying mortgage or loan payments.

It’s also essential to consider market and industry data to ensure your salary is aligned with competitors to attract top talent to your organization.  For instance, our research revealed an average recruiter salary of $95K for tech or SaaS in the United States. 

Commission Structure

There are various commission models, including flat rate, tiered, and accelerators. 

• Flat rate: Also known as single-rate or fixed-rate commission, this is a set percentage of the sales price paid on each deal. The rate doesn’t change, regardless of the amount or quantity of sales, making this model easy for reps to understand.
• Tiered: A tiered commission structure includes two or more tiers, with the commission rate increasing as the volume or quantity of deals increases with each tier. This model has many advantages. It increases sales team motivation, improves rep performance, and aligns sales agent behaviors with business objectives. A tiered commission model is also a cost-effective way to reward reps who exceed expectations.
• Accelerators: An accelerator is a sales model that rewards agents who achieve designated milestones, such as hitting 100% of quota. This bonus can take various forms, including a flat fee, a non-cash reward, or a higher percentage payout. Accelerators can effectively motivate agents to close more sales while helping attract and retain top talent.

Bonuses

There are also various types of bonuses such as sign-on, performance, and team-based. 

• Sign-on: A sign-on bonus is a one-time payment or stock option an employer offers to motivate a candidate to accept a job. They are often used to attract and hire top talent in a competitive market.
• Performance: Performance bonuses award sales agents a fixed dollar amount for specific behaviors or achievements. For instance, a $200 bonus payment for each deal closed, for each percentage point attained above 100% quota, or for meeting or exceeding a designated target. Performance bonuses are effective motivators.
• Team-based: Team-based bonuses reward the entire team for overcoming specific challenges or hitting their collective targets. This bonus structure fosters teamwork.
  

Incentives

Other potential incentives include: 

• Stock Options: Stock options are incentives included in compensation packages, especially at startups. A specified number of shares are granted with a designated date in the future when the employee will be fully vested and able to sell the stock, thereby exercising their option.
• Equity: Equity is another way to pay employees with company shares or other ownership interests instead of cash. Stock options include restricted stock, stock appreciation rights (SARs), and employee stock purchase plans (ESPPs), which allow employees to participate in their company’s profitability.
• Perks: Perks are non-cash incentives offered at the company’s discretion. Examples of perks include paid time off, free food, professional development opportunities, and on-site childcare.

Best Practices for Recruiter Compensation

Leveraging these best practices will help you build an effective recruiter compensation plan.

•  Alignment with Company Goals: Ensure the compensation plan supports overall business objectives.
•  Market Competitiveness: Conduct regular market research to maintain competitive compensation.
• Transparency and Communication: Clearly communicate compensation expectations and criteria.
• Performance Metrics: Define measurable KPIs to evaluate recruiter performance and trigger compensation.
• Flexibility and Adaptability: Design a plan that can be adjusted to changing market conditions or business priorities.
• Reward Quality, Not Quantity: Focus on metrics that measure the quality of hires, such as time-to-fill, employee retention, and performance.
• Balance Short-Term and Long-Term Incentives: Offer a mix of base salary, commissions, bonuses, and other incentives to motivate recruiters to achieve both short-term and long-term goals.
• Provide Opportunities for Growth: Offer career advancement paths and professional development opportunities to retain top recruiters.
• Recognize the Unique Challenges of Recruiting: Acknowledge the specific challenges and demands of the recruiting role, and tailor the compensation package accordingly.

Example of a Recruiter Compensation Plan

External recruiter compensation plans vary greatly with recruiters earning incentives on a percentage of revenue generated and based on an individual being hired.

One thing we’re noticing is an increase in recruiter fees, including 10% of a candidate’s salary for easier-to-fill roles, and as high as 50% for more difficult-to-fill hires. The recruiter then earns a percentage of that revenue depending on their revenue goal, with commission rates ranging from 5% to 20%.

Recruiter Compensation Plan Example

Quota: $700,000 of revenue per year

On-Target Earnings: $120k per year

Base Salary: $60k per year

On-Target Variable: $60k per year

Commission Structure: A cliff that holds 0% commission until the recruiter generates $60k in revenue, then increases to 8.60% commission on all revenue sold after that.

Please note that the recruiter doesn’t earn a commission under this plan until they generate $60k of revenue to cover their base salary. This plan also includes a monthly recoverable draw on projected commission.

Executive Recruiter Compensation Structure

Next, let’s look into executive recruiter compensation structures. Given the importance of these roles, recruiters are often rewarded more, and trends suggest they are earning more than ever.

• Performance-Based Pay: The rise in performance-related compensation is the main driver behind increasing total compensation in the executive search industry. Performance-based incentives, such as fees tied to the number of searches completed or revenue targets, play a significant role in overall earnings.
• Shift in Pay Structure: For less experienced recruiters (zero to five years), compensation structures have shifted from base salary plus discretionary bonuses to more performance-based models. This includes bonuses tied to search completions or achieving certain thresholds, which incentivizes high performance.
• Compensation Breakdown by Experience:
  • Recruiters with less than five years of experience earned an average of $126,505 in 2022.
  • Those with six to 10 years of experience saw total compensation rise to $250,872.
  • Executive recruiters with over 11 years of experience earned an average of $446,841.
• Compensation Based on Revenue Performance:
  • Recruiters generating over $1.5 million in revenue earned an average of $590,714.
  • Those with $1 million to $1.5 million in revenue earned $486,125.
  • Lower revenue tiers earned significantly less, ranging from $103,840 to $242,500.
• Collaboration with Venture Capital and Private Equity: Increased collaboration between executive search firms and the venture capital/private equity sectors has created more lucrative opportunities, such as equity-based compensation for recruiters working with startups.
• Base Salaries: While total compensation has increased, base salaries have remained relatively flat, with

Retained Search Firm Fees

Retained executive search firms are known for complete and extensive candidate assessments, and prioritizing quality candidates, best suited for long-term executive roles Retained search fees are usually one-third (33%) of the candidate’s first-year total cash compensation, including the base salary plus projected bonuses.

Large retained executive search firms typically charge fees starting at $100-thousand dollars. These firms need to earn six figure fees to cover their global overhead. Therefore, it’s common for them to refuse searches for roles with total cash compensation of less than $300 thousand

These firms also charge for the cost of direct search-related expenses such as travel. Some firms increase their fee by 10%-15% to cover administrative costs that cannot easily be tied to a specific search. So instead of search fees of 33%, the engagement can cost 38% including administrative costs.

Instead of charging per-project fees upfront, retained search firms secure a contract to focus their efforts on locating the ideal candidate to fill the desired role. Clients are then charged in three equal installments at 30, 60, and 90 days, once the chosen candidate is successfully hired or at performance milestones.

Learn How QuotaPath Automates Recruiting Compensation

Recruiter compensation details how agents are paid. External recruiters employed by agencies typically receive performance-based pay consisting of a base salary, incentives, and bonuses.  

A well-designed recruiter compensation plan is essential for attracting and retaining top talent. Leveraging best practices like alignment with company goals, completing market research, and clearly communicating compensation expectations and criteria will help you build and maintain competitive recruiter compensation.

To create a seamless experience from comp plan creation through commission payment, learn how QuotaPath supports recruiter compensation plans. Schedule time with our team, or sign up for a free trial.

The new year is just around the corner, and with it comes the opportunity to refresh your company’s compensation strategy. 

While you and your leadership team should feel optimistic when it’s time to roll out your plan, it’s imperative to remember that those impacted by the comp plan—your teams—might not see it that way. 

In our experience, most teams resist comp plan changes and assume the worst. “The company wants us to do more and pay us less” is a common trope. 

And when leadership fails to keep their team privy to incoming changes, distrust, and negativity only worsen. Mark Roberge, Managing Director of Stage 2 Capital, has firsthand experience with the consequences of a poorly executed compensation plan. 

He recalls when “10 amazing salespeople from a particular company came to me with job applications” immediately following a botched compensation plan design coupled with ineffective communication.

As Mark emphasizes, “You have to carefully manage the design and communication process of a compensation plan.”

Here’s how to do it. 

The Importance of Proactive Communication

A well-executed comp plan rollout can significantly impact your team’s motivation, performance, and trust in your leadership. By proactively addressing concerns, gathering input, and providing clear information, you can help your team understand the rationale behind changes and maintain morale.

“Your salespeople deserve to know why the design is the way it is and why changes they propose can’t be done,”  said Mark.

Pre-Launch Communication:

• Involve Reps in the Development Process: When reps feel involved in decision-making, they are more likely to support the new plan. Consider forming a committee or conducting surveys to gather feedback.
  • Test the comp plan with a few sales reps to get “market feedback” before implementing. (Read: comp plan best practices.)
• Hold a town hall meeting with your team: Outline the plan’s drivers and reasons for upcoming changes. Make it a two-way conversation and invite feedback and suggestions. 
• Provide Ample Notice: Give your team ample time to adjust to the new plan. This will allow them to prepare and ask questions mentally.
• Address Concerns and Questions: Be prepared to answer questions and address concerns about the new plan. Open communication can help to alleviate anxiety and build trust.

During Implementation:

• Launch at Sales Kickoff (SKO): Crate alignment between business goals, sales goals, and compensation plans involving HR, sales operations, and sales executives. Communicate changes and provide the necessary support to inspire the sales organization.
• Offer Comprehensive Training: Ensure your team understands the new plan and how it will impact their earnings. Provide training sessions and resources to support their understanding.
• Monitor Performance and Address Issues: Monitor your team’s performance closely and address any issues promptly. This will help maintain morale and ensure that the plan is working as intended.
• Encourage Open Communication: Create a culture of open communication where employees feel comfortable sharing their thoughts and concerns. This can help to identify potential problems early on.  
• Hold team and one-on-one plan reviews: Conduct team meetings and one-on-ones to explain compensation plans in detail. Distribute supporting materials like FAQs, videos, and calculators to help employees understand the plan thoroughly.

Post-Launch Communication:

• Gather Feedback: Conduct surveys or one-on-one meetings to gather feedback on the new plan. This will help you identify areas for improvement and make necessary adjustments.
  • Ask:
    • Do you feel this comp plan is fair? Why or why not.
    • Are you incentivized? Why or why not.
    • Do you understand how you’re paid?
• Analyze Performance Data: Track key performance metrics to evaluate the effectiveness of the new plan and share with team.
  • Are reps achieving their quotas? 
  • Are they motivated to exceed expectations?
  • What were you hoping to drive with your comp plan, and have you seen evidence suggesting a change has happened?
  • How’s your win rate?
  • Is sales velocity increasing? What about average contract value? 
• Make Data-Driven Adjustments: Based on your analysis, make data-driven adjustments to the plan as needed. This could involve changes to commission rates, quotas, or other elements of the plan.

Comp Plan Rollout Scenarios

So, what does a good look look like in this case, and what does a bad look look like?

Example of Effective Communication:

• Scenario: A company is introducing a new commission structure that rewards team collaboration.
• Effective Communication: The company explains the new structure, highlighting the benefits of teamwork and collaboration. They also offer training sessions to help reps understand the new metrics and how they will be evaluated.

Example of Ineffective Communication:

• Scenario: A company suddenly announces a new comp plan with higher quotas and lower commission rates.
• Ineffective Communication: The company fails to explain the changes, leaving employees feeling surprised and demotivated.

Can QuotaPath Help Your Rollout?

Building a compensation plan that drives desired selling behaviors is essential for the success of any sales organization. You can create a motivating and effective compensation structure by aligning your plan with business goals, ensuring transparency and communication, and automating key processes. 

The best news? QuotaPath can make all of this easier for you. 

QuotaPath offers a comprehensive solution for building, managing, and measuring sales compensation plans. 

With QuotaPath:

• Align your plan with business goals: Easily create plans that directly support your company’s objectives.
• Ensure transparency and communication: Provide clear and accessible information to your sales team, fostering trust and understanding.
• Automate processes: Streamline tasks like tracking performance, calculating payouts, and generating reports.

Schedule time with our team to learn more.

October marks the beginning of Comptober at QuotaPath—when teams should begin building their compensation plan proposals for the upcoming year. 

As we dive into comp planning, one theme stands out more than ever: alignment. 

When we asked nearly 500 revenue leaders what area of their sales compensation management process needs the most improvement, 25% reported “alignment to business goals” as their top focus, followed closely by simplicity, optimization, visibility, and automation.

Given today’s rapidly changing economic environment, this focus on alignment isn’t surprising. 

Companies should ensure their compensation plans are designed in collaboration with Sales, Finance, and RevOps leaders to drive growth and efficiency. 

A lack of alignment between these teams can lead to comp plans that drive the wrong behaviors or favor the business more than the reps, jeopardizing the organization’s strategic objectives and the reps’ loyalty. 

In this blog, we’ll explore how alignment can make or break your comp plans and offer steps to ensure your team is on the right track as you build for the year ahead. 

How Misalignment Occurs

We’ll begin with the precious of misalignment in compensation plans. This typically occurs for one or multiple of the following reasons:

Cross-department Collaboration is Key to Avoiding Misalignment

The first and most crucial step in avoiding compensation plan misalignment is ensuring cross-department collaboration from the start. 

Compensation plans that are built in silos—whether by Sales, RevOps, or Finance—are bound to create friction, drive the wrong behaviors, or fail to align with business goals. That’s why involving key stakeholders from each department is essential to building a plan that works for everyone.

Who Should Be Involved?

• RevOps Leaders: As the team responsible for ensuring operational alignment between Sales, Marketing, and Finance, RevOps plays a critical role in ensuring the compensation plan ties back to the company’s overarching goals. RevOps leaders are often responsible for managing the data, processes, and systems that support the plan’s execution.
• Sales Leaders: Sales teams are on the frontlines of executing the company’s growth strategy. Sales leaders offer insight into what motivates the team, current market conditions, and how the compensation plan can drive behaviors that align with business objectives. They ensure that quotas, commissions, and incentives are realistic and achievable.
• Finance Leaders: Finance has the final say regarding the budget and ensuring the plan is financially viable. They provide the guardrails that ensure the plan is fair to reps and sustainable for the business.
• Reps Themselves: It’s equally important to involve sales reps. After all, they’re the ones being incentivized. Gathering feedback on current plans, understanding what motivates them, and identifying pain points will create a compensation structure aligning rep behavior with business goals. This buy-in from reps also increases engagement and motivation, making them more likely to hit their targets.

Why Collaboration Matters

Collaboration across departments ensures that the compensation plan reflects the perspectives and needs of the entire organization, not just one team. Without this collaboration, it’s easy to create plans that unintentionally drive the wrong behaviors—such as reps focusing too heavily on short-term wins at the expense of long-term growth, or plans that don’t account for the company’s financial reality. When Sales, RevOps, and Finance collaborate, it creates alignment, ensuring that the plan motivates reps and drives the right business outcomes.

By fostering collaboration across Sales, Finance, RevOps, and involving reps in the process, your organization can create a compensation plan that drives alignment, motivates the right behaviors, and supports your business goals.

Establish Organizational Goals Before Setting Compensation Plans

Equally as important as cross-department collaboration is the need to set organizational goals before designing compensation plans.

A well-crafted compensation plan should directly align with your company’s strategic objectives, ensuring every incentive is tied to the behaviors and outcomes that move the business forward. Without clear goals, you risk creating a comp plan that drives actions misaligned with what your organization needs to achieve.

Why Finalizing Goals First is Critical

The role of a compensation plan is to motivate and reward the right actions from your sales teams. 

However, if your company’s business objectives haven’t been clearly defined, it’s impossible to know what those “right actions” are. 

For example, if your primary business goal is to improve gross revenue retention, but your comp plan incentivizes reps based solely on new business without factoring in retention, you’ll find yourself driving the wrong behaviors.

In this scenario, reps may focus on closing new deals quickly, potentially at the cost of long-term customer relationships and retention—ultimately harming your company’s growth targets.

Start with the Big Picture

So, before drafting any compensation plan, sit down with your executive team to establish your key business metrics for the upcoming year. 

These might include goals like:

• Increasing revenue growth
• Enhancing customer retention
• Driving efficiency across sales processes
• Expanding into new markets or verticals
• Improving profit margins

Once these broader objectives are set, you can tailor your compensation structure to reflect and support these goals. This ensures that every aspect of the plan—from quotas to commission structures to bonuses—works harmoniously with the company’s priorities.

Avoiding the Pitfalls of Misalignment

One of the most common reasons comp plans fail is because they were created before organizational goals were fully fleshed out. If the priorities of your business shift mid-year or after a plan is finalized, you’ll end up with misaligned incentives. This can lead to reps focusing on outdated or irrelevant targets, causing friction and ultimately slowing progress toward the company’s true goals.

By setting clear business goals first and ensuring every piece of your compensation plan is aligned to those goals, you’ll build a structure that motivates your team and drives the outcomes that matter most to the long-term success of your organization.

Limit Focusing Solely on Short-Term Outcomes

Next, remember that while short-term objectives like hitting quotas or generating leads are important, compensation plans that prioritize these exclusively can lead to unintended consequences. 

When reps are incentivized only on immediate wins, they focus on individual success—often at the expense of broader company goals like long-term customer retention or strategic growth.

To avoid this, it’s essential to balance rewarding short-term performance and aligning incentives with the company’s long-term objectives. Consider incorporating elements that promote sustainable growth, such as rewarding reps for high-quality deals, customer retention, or long-term contracts. 

This approach ensures your team remains focused not just on immediate results but on driving success that supports the company’s bigger picture.

Refrain From Copying Old Plans

Lastly, reusing old compensation plans—whether a new leader is bringing a model from their previous company or simply recycling last year’s plan—can create misalignment if the plan doesn’t account for the current business environment or strategic shifts. 

Each year brings new challenges and priorities, and compensation structures should evolve accordingly.

Instead of defaulting to what worked in the past, take the time to assess whether the previous plan aligns with your company’s current goals, market conditions, and team structure. By tailoring the comp plan to reflect the unique circumstances of the present, you’ll avoid driving behaviors that are out of sync with your organization’s needs.

Collaborating and Aligning Comp Plans to Drive Success

As we enter Comptober, teams must focus on aligning their sales compensation plans with their company’s most important business metrics. 

From cross-department collaboration to setting clear organizational goals, ensuring your comp plan is designed with the right framework can make or break your company’s success. Avoiding common pitfalls like focusing too heavily on short-term goals or recycling old plans ensures that your strategy is forward-thinking, motivating, and in sync with your business objectives.

Partnering with QuotaPath can help you structure and measure sales compensation plans that align with your company’s goals. 

Our platform provides transparency and collaboration between Sales, Finance, and RevOps teams, ensuring compensation plans drive the right behaviors and support long-term success. Talk to our team today.

SaaS company leaders face many challenges in compensation planning; however, aligning compensation with company goals is their biggest challenge. This alignment is crucial for driving business goals achievement.

But another challenge that pops up and is relative to alignment issues is the communication of comp plan changes. After all, 77% of revenue leaders said their reps found their comp plans challenging to understand, and 60% of reps take 3 to 6 months to completely understand how they earn variable pay from their compensation plans.

Compensation plans are ineffective if they don’t motivate reps. Another contributing factor is the failure to gather and integrate feedback into plans.  Even if reps understand how they earn commission, if they feel that the plan is unrealistic or the incentives aren’t attractive to them, plans won’t inspire the level of performance you’re seeking. The best way to solve this is by routinely asking reps for feedback and then carefully considering their input as you create or update the plan.

Alignment, communication, and feedback integration all lead to motivation and trust in sales compensation for driving sales performance. When reps don’t trust their compensation plan and aren’t motivated by their incentives, you’re likely to fall short of business goal attainment.

By gathering feedback from each person on the sales team, you learn where to prioritize your attention during compensation planning and what motivates each individual. These insights can help tailor compensation plans to motivate sales reps better and align with company goals. When reps are included and feel heard, trust is built, and they are more likely to be motivated by their comp plans.

Developing a Compensation Strategy with Feedback Integration

Feedback from reps includes insights about how they feel about their compensation plan if they feel incentivized, and how well they understand how they are paid. Plus, asking these questions of salespeople who aren’t driving the outcomes you aimed to achieve with your comp plan helps you determine how to adjust the plan to boost its effectiveness.

The key components of a compensation package include base salary, bonuses, and commissions. These are determined based on a combination of rep feedback and market research. Market research helps ensure you remain competitive in the marketplace, so you attract and retain top talent. Rep feedback helps you adjust plan elements, so they motivate reps to drive the outcomes tied to business objectives.

For instance, if the company wants reps to close more multi-year deals, the plan needs to reward reps for closing 2–3-year deals. However, if reps aren’t selling these deals, it may mean that the multi-year rate isn’t high enough compared to your base rate. Then, increasing the incentives for multi-year deals in the new plan is more likely to motivate reps to achieve this outcome.

Effective Communication Throughout the Compensation Planning Process to Build Trust

Communication is crucial to the success of new or altered sales compensation plans. Starting early builds trust and allows sufficient time for reps to understand their new plan. This understanding helps you gain rep buy-in and motivates reps to adopt desired behaviors to drive business goal achievement. Failure to effectively communicate compensation plans can result in rep frustration, loss of trust, demotivation, and rep turnover.

Steps for communicating the compensation plan rollout to employees include:

1. Management education: Before implementing the new compensation plan, present it to all management levels. Detail each component, the reasons for the changes, and their impact on the salesforce, specifying who will be affected and how. Emphasize the advantages of the new plan and provide tips on maximizing commissions. Distribute plan documents, FAQs, instructional videos, what-if calculators, promotional video templates, and other launch materials.
2. General plan and roll-out review by sales leadership: Senior sales management, such as a VP, should deliver a general plan and roll-out process review with the team. The goal is to energize and engage the entire sales organization as they launch the new compensation plan. After the session, send an email to the entire sales team summarizing the discussion and including a video highlighting the plan and outlining the roll-out process.
3. More detailed small group plan review: Next, sales managers should provide their teams with a thorough review of the plan. Clarify how the plan affects both the team as a whole and individual contributors. Share detailed plan documents, FAQs, videos, what-if calculators, and other launch materials with the sales team members for their review.
4. Individual plan review: After the group review, sales managers should meet individually with each team member to discuss how the new plan affects them personally. This allows reps to ask questions or express concerns about the new sales compensation plan in a private setting. Additionally, reps can submit any further questions via email, private chat, or phone as needed.
5. Plan verification: Finally, have reps confirm they understand their plans by signing off on them. This is a crucial step in ensuring alignment and transparency throughout the compensation planning process. Plan verification or re-verification should be completed whenever changes are made to compensation plans. This can be done using DocuSign, via email, in person, or through our in-app Plan Verification feature.

Explaining the “why” and the “math” behind compensation decisions helps build trust.

Strategies for sharing the reasoning behind comp plan changes include having senior leadership present at the start of the sales kickoff meeting where they share the organization’s goals and relate them to performance and compensation. Discussing how the sales team’s work supports business objectives and drives goal achievement boosts rep buy-in, understanding, and focus.

Once reps know the why, it’s essential that they understand how their compensation is calculated. A couple of ways to accomplish this include calculating examples based on various scenarios in plan documents or giving the sales team access to forecasting software that automates commission calculations. This answers questions and clarifies how the new plan affects team members’ income potential.

How to Motivate Sales Team

70% of leaders say their plans motivate reps. Is that good enough?

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Best Practices for Feedback and Communication in Compensation Planning

Leverage these tips to incorporate feedback and communication throughout your compensation planning process to increase the effectiveness of your plans.

Integrate Feedback and Communication in Comp Planning

Feedback and communication are essential elements in the compensation planning process. Incorporating these practices enables you to make more informed strategic decisions as you create plans for the new year. Doing so increases the effectiveness of the comp plans, motivates desired rep behaviors, and drives organizational goal achievements.

Learn more about how QuotaPath can assist in the compensation planning process to ensure alignment between compensation and motivation, driving desired business outcomes. Schedule time with the QuotaPath team for a consultation.