New Sales Compensation System: Transportation

New Sales Compensation for a Transportation Company

Client Case Study

Situation

A transportation company was looking for ways to re-energize the sales force and also begin to introduce new types of services for their customers.

 

Complications

  • Stagnation: Flat and declining sales revenue for two years.
  • Alignment: Current sales reward systems did not align with the new go to market strategies.

Approach

  1. Executive Interviews: We met with executives of the organization to gain an understanding of the business and began strategic planning on how and when to introduce the new service offerings for maximum impact.
  2. Field Interviews: A number of on-site visits were conducted with field leadership and account executives to gain insight into the roles, territories, and economics of the business.
  3. Redesign Sales Commission: We made the recommendation to “power” the business turnaround with a redesigned sales commission reward system.  During the course of the redesign study:
    • Market comparisons were conducted to ensure external competitiveness of salaries.
    • Financial modeling was conducted in collaboration with the client to determine cost impact.
    • Concurrently, internal tracking and measurement systems were developed to monitor and support the new sales compensation system.

Results
In twelve months:

  • 15% increase in overall sales revenue

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