To motivate, manage, and reward B2B salespeople, many companies use sales incentive plans that link large commissions or bonuses to individual results metrics, such as territory quota achievement. As digital channels continue to reduce and redefine salespeople’s role in customer buying, these traditional sales incentive plans are becoming less effective at driving sales outcomes.
Are Sales Incentives Becoming Obsolete?
Digital channels are reducing salespeople’s measurable impact.
August 03, 2017
Summary.
Companies have traditionally paid salespeople incentives for hitting goals or quotas, but such systems rely on two things: That salespeople have real impact over sales, and that companies be able to measure that impact directly. The rise of digital sales channels, where buyers complete much of the buying process self-sufficiently and online, are reducing that measurable impact, and companies need to explore new ways to create incentives for their salesforce as the traditional system becomes less viable.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.