Sales Compensation Transformation

Clarity and Simplicity

A company we worked with had struggled to improve sales performance, and they believed one of the contributing factors was a complicated sales compensation plan that made it difficult for sales people to determine how much they would earn on a specific opportunity. Furthermore, the administration of the plan was heavily manual, prone to mistakes and consumed significant amounts of time from sales, sales leadership, finance and the compensation organization.

The first phase was to simplify the compensation plan so it would be easier to administer and drive the desired behavior from the sales team. The new compensation plan provided clarity to the sales person on how to maximize their earning potential, and it aligned with the company’s key priorities for growth, retention and profitability.

The second phase was to transition from the manual, spreadsheet-based process for calculating and paying commissions, to an automated process with Xactly compensation system that we integrated with the company’s sales force automation system. The new processes and integration significantly reduced administrative headcount, eliminated errors, and provided the sales team an easy-to-use interface and reporting for their incentive payments.