New SAMA/ZS Comp Study Reveals Four Key Trends

Posted by Jonathan Ezer on Tue, May 14, 2013

Strategic accounts are growing in importance, as they have over the past several years. Firms are becoming ever more specialized, and as a result, strategic account management (SAM) programs are expanding to support critical customer segments. In this business environment, compensation for strategic account management professionals is evolving to better align with business objectives and strategic account goals.

Seeking insight into how leading organizations pay their SAMs, the Strategic Account Management Association and ZS Associates created the 2013 Report on Strategic Account Management Compensation Practices.


>
Read More

Game On? Two Incentive Metrics That Encourage Inaccuracy

Posted by Jonathan Ezer on Mon, Apr 08, 2013

One of the most important decisions when designing a compensation plan is choice of metric. Booked value, invoiced value, shipped value, recognized revenue or gross profit? At ZS, we have seen comp plans based on all of the above. Decide wrong, and your comp plan might be easy to game.


>
Read More

Three Ways to Offset the Loss Leader Maneuver for Gaming Comp Plans

Posted by Jonathan Ezer on Tue, Mar 19, 2013

Like supermarkets selling milk or eggs below cost, some salespeople try to "get customers in the door" by exploiting loss leaders. The strategy is one of the ways sales reps can game their comp plans, as discussed in my previous blog post and identified in recent interviews ZS conducted with sales compensation analysts.


>
Read More

The Games (Sales)People Play to Increase Commissions

Posted by Jonathan Ezer on Wed, Jan 23, 2013

We recently interviewed several sales compensation analysts across numerous industries, to gather stories of how sales reps cunningly find loopholes in their compensation plans and pull in a few extra dollars.

According to one analyst in the tech sector, when the economy is going well, sales reps sell, but when business is bad, sales reps scheme. According to the analyst, when sales are slow, sales reps spend half of their time selling and the other half gaming: analyzing incentive plans and looking for creative ways to maximize their payouts without regard to the good of their company.


>
Read More