Commission Metrics & ROI

When evaluating commission systems and return on investment (ROI) what are the hot metrics to include presenting your case? How can you determine whether you are truly seeing the benefit of your system? In the traditional sense of incentive compensation people look to cost saving benefits like error correction, shadow accounting, end user experience and ease of changing plans for ROI. Today organizations are providing a more substantial ROI by combining Coaching with Commissions systems to realize full ROI potential. By focusing on key coaching techniques many organizations experience an increase in revenue that provides an even more compelling case. As noted in the Sales Executive Council there is no other productivity investment that approaches the benefits of coaching when it comes to bolstering activity. "The real payoff from good coaching lies among the middle 60 percent - your core performers," he wrote for the Harvard Business Review. "For this group, the best-quality coaching can improve performance up to 19 percent. In fact, even moderate improvement in coaching quality ... can mean a 6 to 8 percent increase in performance across 50 percent of your sales force. Often as not, that makes the difference between hitting or missing goals." This presentation will walk through how to determine the core cost savings of implementing a commission system and the key considerations when implementing a coaching system to determine revenue enhancement. During the presentation you will be provided with examples including the above metrics, along with a few others, to try out or ask questions about at the conclusion.

Compensation Managers, Sales Operations, Director of Compensation

Key metrics for measuring value of an incentive compensation system. How combining incentive compensation and coaching can yield a higher return on investment by not only cutting cost, but by enhancing revenue.

Sales Executive Council, Harvard Business Review.

		Doug Erb Canidium, LLC View Profile