Best Practice Report

Sales Compensation Plan Design: Margin Performance Measures

January 1st, 2018


Unfortunately, many B2B sales leaders believe that the panacea for improving margins is to set a sales quota (performance measure) for it. Although this approach can work under the right circumstances, it’s a mistake to assume that the lack of a margin performance measure in a sales compensation plan is the cause of lackluster margin results. Factors outside sales reps’ control (e.g., product maturity, market maturity, cost inefficiencies, competition) also must be considered. In this report, we explain when to use — and when not to use — margin performance measures, and how to deploy them to improve margin results.

Want to read the full report?

Contact us to become a client

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.