Business Case – Sales Incentive
Strategic Account Targeting Yields Increased Sales
TARGET AUDIENCE
Sales Reps/Sales Managers
Program Name
Target Your Top Ten Prospects
Situation
The organization was suffering from a deficient sales funnel. Prospective accounts in the sales funnel ranged from 0-40. Process for filling the sales funnel was dependent on the Sales Reps’ varied skills and experiences.
Objective
To increase accounts in the funnel and ultimately increase sales by targeting high-revenue accounts and by selling multiple, high-margin products to the targets.
Solutions
- Rewarded Reps for targeting ten accounts that could benefit from three or more product families.
- Rewarded Reps for closing sales to targeted accounts and provided a bonus for selling featured, high-margin products.
- Rewarded Managers when 90% of their Reps identified their ten targeted accounts.
- Incentive program reports allowed marketing and technical staff to also identify funnel opportunities and offer their services to Reps to accelerate sales.
- Kept excitement high by providing motivational communications and weekly reports that were visible to all.
- Executive reports, discussed regularly on conference calls with top management, highlighted Best Practices and early indicators such as:
– Number of meetings Reps conducted with high-level decision makers inside targeted accounts.
– Number of proposals delivered to targeted accounts that contained a multiple product solution.
- Created a systematic way for Managers to plan, manage, and inspect the sales funnel.
Communications
Fun, lively communications kept the program top-of-mind and engaged participants. Simple, but effective communications included fun program launch materials, banners, t-shirts, manager and participant guides, progress boards, and weekly sales success stories.
Results
- Sales funnel that had been narrow and deficient expanded to $125+ million within 6 months.
- Sales Reps focused on a broader mix of products, and larger accounts.
- Reps sold to higher volume accounts resulting in less internal
sales conflict.
- Product Managers, who in the past would have run individual product incentives, saw product sales exceed prior results.
- Incentive program prompted client research that showed customers were less price sensitive when buying a solution rather than a single product.
Return on Investment (ROI)
Client estimated 50% ($5,218,717) of the Monthly Recurring Charges (MRC) that sold were due to the incentive program.
Total Investment
$869,507 which includes communications, administration, and awards.