Compensating New Sales Roles: How to Design Rewards That Work in Today's Selling Environment

How to Choose the Best Performance Measures for Your Company's New Sales Roles

Selecting performance measures for a new sales role is a three-step process. First, you must decide the business objective(s) you want to achieve: growth, profitability, productivity improvement, cost reduction, customer loyalty and retention, or some combination of these five. Second, you must select the indicators or yardsticks that, in your business, reflect successful achievement of the objectives you set and have systems or processes in place for measuring them. For example, all companies want to grow and want that growth to be profitable. It may not be possible to measure profitability at the frontline sales or customer contact level because the firm does not ...