Seven Ways Sales Teams Can Set Better Goals

Posted by Andris A. Zoltners, PK Sinha, and Sally E. Lorimer on Thu, Jun 20, 2019

Most sales forces use sales goals to focus attention on what’s important and give salespeople direction about what to do. Goals energize people and encourage them to keep going. Very often, companies link sales force incentive pay to goal achievement. This makes effective goal setting essential for directing and motivating sales teams and controlling sales compensation costs.


>
Read More

Wells Fargo and the Slippery Slope of Sales Incentives

Posted by Andris A. Zoltners, PK Sinha, and Sally E. Lorimer on Fri, Sep 23, 2016


In early September, Wells Fargo agreed to pay a $185 million fine and return $5 million in fees wrongly charged to customers. The settlement stems from the bank’s employees allegedly opening more than two million bank and credit card accounts without customers’ permission. The CEO of Wells Fargo, John Stumpf, apologized in front of a congressional panel Tuesday, saying in a statement, “I accept full responsibility for all unethical sales practices.”


>
Read More

When Sales Incentives Should Be Based on Profit, Not Revenue

Posted by Andris A. Zoltners, PK Sinha, and Sally E. Lorimer on Fri, Jun 12, 2015

Most sales forces link some portion of salespeople’s pay to sales metrics. For example, they pay a commission on the revenues salespeople generate or a bonus for achieving a territory sales quota. This proven “pay for performance” approach motivates salespeople to work hard and drive sales results.


>
Read More

Who Owns Your Customer Relationships: Your Salespeople or Your Company?

Posted by Andy Zoltners, Prabha Sinha and Sally Lorimer on Wed, Dec 21, 2011

Your R&D group develops a unique new product. Manufacturing produces it. Finance puts the systems in place to track the money coming in. Marketing designs the promotional campaign. Your sales force is ready to execute. "We own the relationships with customers," say your salespeople. "The company holds us accountable for revenues and expects us to develop and maintain the connections to drive sales. Just pay us our commissions and leave us alone."


>
Read More

Five Ways That Higher Sales Goals Lead to Lower Sales

Posted by Andy Zoltners, Prabha Sinha and Sally Lorimer on Mon, Sep 12, 2011

Companies set goals for their salespeople and most link incentive pay to goal achievement. Many advocate using stretch goals to improve the company's chance of achieving financial targets, reasoning that challenging goals motivate salespeople to think big, be creative in finding ways to create customer value, and attain performance levels never thought possible. But is that always the case?


>
Read More