Case Study: Sales Training and Compensation Strategy
How we helped a sales organization with B2C and B2B units develop a strategically incentivized compensation plan and identify the best product mix to generate over $1M of annual bottom line impact.
Project Impact
Client Challenges
The client, a call center based sales organization, was struggling to get sales representatives to achieve targets due to low close rates and a poor sales mix. On top of this, they were dealing with crippling levels of employee turnover and poor adherence from the employees that were present.
Misaligned Sales Compensation Plans
The sales compensation plans gave little consideration to the margins required for the business to be profitable. Compensation became an unacceptably high percentage of revenues, hurting profits and cash flow.
Minimal Reporting and Data Utilization
Large sets of data were available via the software that powered call routing and gathered customer data within the call center. This data unutilized leaving management in the dark when it came to identifying opportunities for improvement.
Poor Understanding of Product Value
The client didn’t have a defined set of product relationships, minimizing the opportunity for cross-sell and up-sell initiatives. The sales teams also struggled to clearly understand the value of product and service offerings to the client.
Lack of Quality Training for Sales Teams
Through observation and customer feedback, we uncovered inconsistencies in the value proposition and messaging sales representatives were delivering to customers resulting in customer confusion and reduced close rates.
The Collaborative Solution
During an engagement lasting nine months, we worked with client leadership to revamp their sales staff, compensation, and training to deliver higher quality, more consistent customer experiences. We also developed detailed KPI reporting to deliver valuable insights and inform future strategic decisions.
Evaluate and Optimize Existing Sales Staff
Tackling the turnover and adherence issues was our initial objective. It was determined that a reduction in the sales force was required to deliver quick, impactful changes in output. We conducted a thorough analysis of employee performance to identify representatives that delivered the highest value to the organization. Employees that made positive economic contributions to the business and displayed behavioral tendencies attributed to high performers were kept as part of the core sales group.
Define a Compensation and Training Strategy
After reviewing the client’s product portfolio for both B2B and B2C units, we identified the products that had the highest economic value for the organization. We then collaborated with the client to design a compensation plan that incentivized reps to sell those items. In addition to this, components of the plan were based on customer experience, close rate, and schedule adherence. This drove behaviors resulting in higher value sales, higher close rates, and higher utilization of existing labor expense.
Implement KPI Reporting Dashboards to Deliver Insights
Leaning on our expertise in call center environments, we were able to quickly develop customized reporting for the client. This reporting delivered valuable insights that were previously unavailable by enabling them to quickly understand employee performance and the success of various promotional and sales initiatives. This visibility led to a more informed and agile management team making fast, high-value decisions to help deliver over $1M in annual bottom line impact.
