Reimagining Pay for Performance
Paul Vinogradov and Ashish Tiwari
The dynamics of the B2B sales organization must evolve to keep up with changes in customer buying behavior. Reimagining the Pay for Performance program can help elevate the seller experience while enabling organizations to achieve their sales goals.
These days, B2B sales organizations face more challenges than ever. For many companies, the selling dynamic is changing as their sales focus shifts from perpetual software or equipment licenses to as-a-service models or the data it generates. Meanwhile, evolving expectations, digital transformation, and societal shifts are changing how B2B customers buy. Customers demand more than products and services, they expect memorable omnichannel buying experiences.
Many companies are launching new customer-centric offerings and transforming existing business models to stay competitive. In this environment, the sales organization can't be left behind. Simply stated, when people buy differently, companies must sell differently. This means reimagining the sales function and its go-to-market capabilities to better connect with potential customers, communicate the product or service's value, and close the sale. The stakes are high—when companies get it right, the sales organization can help drive profitable growth, improve the seller experience, and enhance customer outcomes.
A Pay for Performance (P4P) program helps drive a successful transformation by motivating sellers and encouraging the right sales behavior. Yet too often, companies equate P4P with compensation and attempt to motivate sellers by changing their pay structure—by taking a “carrot and stick approach.” However, a holistic program considers the entire organization and the transformation that's necessary to make sellers successful while achieving the organization’s goals and improving the customer’s experience.
Our Pay for Performance framework, based on our observations of sales transformation success stories, lays out the building blocks for an effective program: vision and governance, program design, technology, and analytics.
Prepare your organization for sales success