The Position Of Key Sales Objectives In An Incentives Scheme

Anyone who manages a sales team knows that sales activity must mirror the overall strategy of the company. The point of sales activity is to help the company reach its goals – and the clearer those goals, the easier it is to build a strategy that works.

Key Sales Objectives (KSO) are related to the overall goal of the company, but they are shorter and often more challenging in nature. If you use them correctly, KSO can guide your team in the correct direction.

What Is A Key Sales Objective?

A KSO is a goal that is separate from the sales team’s main long-term targets. They are current key management objectives that are short-term, and there is not usually a target attached to them.

KSO are fully quantifiable so management can assess sales people’s performance against the current KSO.

How Is A KSO Different From A Main Target?

As we have seen, KSO are different in that they are shorter term than main targets. However, just like bigger targets, KSO can be:

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Infographic; Performance Measures In Compensation Plans – How To Weight Them Effectively

It comes the time when designing a sales compensation plan one needs to decide which performance measures to use and the weight they will curry in the program.

Performance measures are those KPIs a sales person is judged and measured upon and consequently incentives are paid for. Deciding the measures to use needs some thinking with the first rule being that these measures shall reflect the goals of the sales team.

As long as there is more than one measures used in the program, one needs to think about the significance each of them will have in the system.

The below inforgraphic gives some insights to help sales management choosing wisely the weight between the measures.

Is Every Sales Role Eligible For Compensation?

Defining a sales role is one of the first to consider when designing a sales compensation plan. The individual program one decides to apply, for example a tiered commission plan, applies to a sales role and not (most of the times) to an individual. Now that each role is defined and grouped, it’s time to … Read more Is Every Sales Role Eligible For Compensation?
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Defining The Job Role Might Be The Answer To Any Commission Plan Problem

The sales incentive scheme is key to the success of any company that relies on selling products or services. After all, the sales incentive scheme determines how much sales people stand to earn. The most effective sales incentive scheme is one that truly motivates sales staff to reach or exceed targets (depending on company aims) … Read more Defining The Job Role Might Be The Answer To Any Commission Plan Problem
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