Aligning sales incentive strategies with the sales goals of the organization is imperative to getting the most out of sales pay-outs, as well as retaining the best sales force.
Sales force incentive compensation can comprise up to 40% of the total revenue of pharmaceutical companies.
We have developed a 5-stage Incentive Compensation plan, which uses a simple yet comprehensive methodology to reward sales performances. The five stages are:
- Understanding – Understanding the desired outcome of the compensation strategy
- Planning – Planning the budget allocated for compensations
- Determining – Determining the fixed and variable pay mix
- Identifying – Identifying the major components and variables of the IC plan design
- Performance Metrics – Deciding which performance metrics should be linked to incentives
Clients that used the incentive compensation plan designed by Think360, saw their high performers get a 15% increase in incentives and could allocate 5% less of their budget to underperformers.