When Designing Non-Sales Objectives, Think About the Middle

Posted by Mike Martin on Mon, Dec 05, 2016


For many companies, 2017 sales compensation planning is almost complete, and the focus is now shifting to setting quotas and defining non-sales objectives. Deciding on non-sales objectives can be hard when everyone has a different opinion on what should be expected of the sales force. One view that I often hear is: “Why should we put that objective in the sales compensation plan? The salespeople should already be doing that as part of their jobs.”


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Rewards to Remember

Posted by Mike Martin on Wed, Oct 12, 2016


Have you ever won a free trip, free concert tickets or free admission somewhere special? If so, I bet that you remember quite a bit about the experience. My mom and uncle still reminisce about their free childhood trips to Kennywood, a little amusement park outside of Pittsburgh, that my grandfather won in a work contest.


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What if the Problem Isn’t Sales Comp?

Posted by Mike Martin on Fri, Aug 26, 2016


This may be blasphemous to even suggest on a blog dedicated to discussing how new sales compensation ideas and tips will help the industry optimize its field sales compensation plans, but what if the solution isn’t about sales comp at all? Recently, I had a chat with Ashish Vazirani, ZS’s high-tech industry lead, and I posed this exact question. Here’s the gist of our conversation: 


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Car Washes and Payout Curves: Part Two

Posted by Mike Martin on Thu, Jul 28, 2016


A few weeks ago, I wrote about an interesting car wash study conducted by Joseph Nunes and Xavier Dreze in 2004 that focused on the threshold at which companies should start paying sales reps on performance. This week, I wanted to look at another aspect of the study that gives some insight into another part of the payout curve: how much to pay as a rep nears and then passes the goal.


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Car Washes and Payout Curves

Posted by Mike Martin on Wed, Jul 06, 2016


In 2004, Joseph Nunes and Xavier Dreze conducted a study at a car wash. For two weekends, they handed out 300 loyalty cards where customers would earn a stamp on their loyalty cards each time they purchased a wash. One hundred and fifty of the cards offered a free car wash after eight paid washes. The other 150 cards offered a free car wash after receiving 10 stamps, but two washes were already stamped. Both required eight additional purchased car washes to be eligible for the free wash, but the results were strikingly different: The redemption rate for those with the option to buy eight and get one free was 19%, but the redemption rate for those with the option to buy 10 and get one free—with two washes already accounted for—was 34%.


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