Measuring Sales Compensation Effectiveness

December 18th, 2020

Summary

In B2B, organizations typically measure sales compensation success in terms of percentage of quota attainment or overall sales growth. However, focusing on these measures is not the best way to assess the effectiveness of a sales compensation program. Quota success depends on forecast accuracy, and sales growth, although critical, doesn’t show the full picture of the sales team’s ability to generate sales because it doesn’t consider the costs required to compensate the team. In this report, we introduce a measurement structure that provides the visibility needed to assess sales compensation effectiveness to enable companies to improve performance.

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