The introduction of automation and machine learning to the sales process is already changing the game. Modern sales technology is allowing buyers to go through a majority of the buying process without ever speaking to a salesperson. Not only is this change evolving the role of the sales professional, but it is also altering how companies should structure their compensation plans.
The impact that artificial intelligence (AI) and automation software will have on sales compensation is significant. For business-to-business (B2B) businesses, massive sales teams may now be unnecessary as weak sales reps will be exposed. Those who remain will be focused on closing deals that are already halfway to the goal line. By the time they reach your salespeople, these prospects are already educated, nurtured and ready to get started.
This is no small change, and your compensation plan must adjust to the new way customers buy. The shift to inbound marketing means rethinking your sales strategy and understanding that sales are no longer siloed but interdependent on marketing and customer service to be successful. So, how exactly does a typical sales team change with a new inbound marketing direction, and how should your compensation plan adjust?
Say Goodbye To The Weak Links
If there is one thing the introduction of automation is sure to do, it’s exposing the weak salespeople in your organization. The 80/20 Pareto’s principle is becoming much more extreme in many industries, and better data collection is making it easier for sales leaders to understand exactly who and what is driving revenue growth. In the hundreds of introductory meetings I’ve had with prospects, whenever I ask if they have reps who don’t meet quota, the answer is always yes. I tell them to get ready -- once inbound leads start coming in, those who can’t keep up won’t be worth keeping around.
Automation means meetings can be automatically booked by prospects themselves -- salespeople don’t even have to manage their own calendar. The focus will shift to maintaining relationships, upselling and becoming a trusted partner rather than just gathering business cards. There will be nowhere for poor salespeople to hide.
With smaller sales teams and an increase in qualified leads, higher quotas and commission percentages will become more common. Technology will help all salespeople get more deals and close them faster. Your top salespeople will be able to make more and have greater incentives with a lower base salary and more emphasis on commission.
Sales Is About To Get More Collaborative
With automation and advanced data reporting capabilities, sales leaders are now able to tell exactly who on their sales team is best at each part of the selling process. There is no doubt that collaborative selling will become more common in B2B business.
Why would you send a rep to close the deal when they are better suited to activities at the beginning of the buying process? Each salesperson will soon be responsible for a certain stage, focusing on what they do best to fully optimize the individual strengths of your entire sales team.
Since a certain salesperson may not be taking point from beginning to end, how can you reflect collaborative efforts in your compensation model? For salespeople, this may include a focus on upselling, cross-selling or retention bonuses as opposed to a straight commission on each sale. For others who are involved, it’s time to include them as a part of sales success. Consider bonuses on a percentage of qualified leads that turn into customers, or for a number of product demonstrations booked each month.
Time To Strengthen The Ties Between Sales And Marketing
Sales and marketing functions should be viewed as a continuous revenue stream. Marketing teams will be able to pinpoint return on investment and instantly know how content and inbound methods have impacted prospects. The sales-marketing divide is over. Both departments are now responsible for a combined synchronized effort to move leads through the buying process.
Compensation models will need to adapt to hybrid teams of sales, marketing and customer service. With the introduction of inbound marketing, these departments are more integrated, so the success or failure of your pipeline will depend on everyone involved. In cases where every department is actively responsible for your sales wins, profit-sharing is an excellent way to reward an entire team for the success of your organization as a whole.
Sales Roles Are No Longer Static
New sales roles are evolving -- from process managers strictly responsible for sales department efficiency to customer success managers who maintain the retention of your clients. These new types of roles mean there might soon be people on your sales team who need to be compensated on a completely different basis than an entry-level sales rep.
Don’t be afraid to get creative. Talk to your team and find out what they think. If you’re reevaluating your sales compensation plan, make sure you’re transparent about why you’re making changes and aim to make it as simple as possible. Also, don’t feel that your compensation model is set in stone. The world of sales changes rapidly, so make sure you are rewarding the right behaviors and aligning with overall organizational goals.
