The Art & Science of Compensation and Sales Performance Management

We’re hearing a lot of “art versus science” debates here at the Sales 2.0 Conference today. This afternoon Chris Cabrera, founder & CEO of Xactly Corporation, gave a dynamic presentation on how science is driving the future of compensation and performance management plans/strategies. How? Companies have more power to incentivize reps and formulate smarter strategies if they capture analytics and data.

For example, do you know what your top performers are doing to stay at the top? Are they upselling? Capturing add-on business? Are they selling differently than their peers?

And what about product mix? If you look at compensation plans, chances are that the rates don’t change based on product. “That’s a level of sophistication that a lot of companies don’t have, because it’s too hard to do in an Excel world,” Cabrera said.

Of course, data is nothing unless you have the innovative capability to leverage it creatively (that’s the “art” side). Cabrera has used the data in his organization to restructure title tiers so that his Gen Y team members (who love upward mobility) can have a chance to ascend to the next level more quickly. “A lot of dollars is less important to them than that movement,” he said.

If you attended the Sales 2.0 Conference, visit our Resource Library to download Cabrera’s presentation (and all other presentations from Monday) for free.

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