Creating more time to close deals

Having the right mindset is essential for all salespeople. If the sales commission software you use is complicated and time demanding, it will distract staff from their real goal. Yes, their goal from a personal point of view is to make money. But how is that done? By closing deals.

The advantages of CRM driven sales commission software

Keeping tabs on existing clients and having information readily to hand on prospective clients and your communications with them is vital. So, having a sales commission software package that is based on Customer Relationship Management rather than Comma Separated Values (CSV – typically spreadsheets) is a bonus.

One significant advantage of CRM sales compensation software is that it makes it possible to incorporate product catalogues. Most businesses have multiple product lines. Each product lines carries varying commission rates based on price and sales volume. 

The use of product catalogues is twofold. Firstly, it makes it easier to target your sales force toward specific products. You can put the spotlight on the product margins and revenues that you wish to promote. Secondly, it makes it easier for individual team members to track their progress in terms of sales commissions earned. Because of this, CRM driven sales commission software programs have the edge over CSV driven software.

Don’t forget your existing client base

Business and sales, in particular, is all about establishing good relationships and communication. The same goes whether you are talking cultivating new clients or expanding business with your current customer base. Far too many salesmen and women concentrate most of their activity on finding new clients. However, this can be detrimental to existing customers, who if truth be known, are your best source of new orders.

This brings us back to communicating. By staying in regular contact and recording where you’re at on the right sales commission software, you are nurturing new business. Besides new business, you will also be encouraging repeat orders.

To find out more about the best CRM based commission tracking software, book a demo or start a free 14-day trial today.

Avoid full commission

There are some circumstances where this type of structure works but, for the most part, full commission is typically only beneficial to sales staff that can’t get other sales jobs or someone that doesn’t require a full time income. Do you really want to entrust your sales to these types of salespeople?

Reward positive behaviour

Some compensation packages fail because employees that miss targets, and don’t meet their employment requirements, continue to receive commission for their sales. This basically means that they are being rewarded for failing.

Offer incentivised rewards for behaviour that you want to see repeated. This also means targeting the goals that are important to your business – if you want to attract more long-term business, offer additional compensation for customers that sign up and stay with the business for the next 6 months.

Choose the right commission level

Commission rates can vary from 1% to 10%, as a typical rule. Use existing sales figures and bear in mind that a good rule is that your top salespeople should be earning as much from their commission as they do from their basic salary. Use this guideline to determine the amount of commission that you pay. 

Pay quickly

Paying commissions quickly will feel like an additional bonus to your salesforce. The perception of reward is greater when the reward comes hot on the heels of the success. The brain recognises that it is being rewarded for the recent action it performed, so people will be more inclined to make additional sales and reach additional goals, if you pay quickly and reliably.

Be transparent with your team

Whatever commission rate, payment terms, and other commission structure you decide on, ensure that you communicate the details with your team. You can also use your sales compensation software to provide individual reports to every one of your sales team. Regular reports enable your salespeople to identify their strong and weak points, so that they can make improvements, or continue to provide the best results for their efforts.