Sales Incentive Design, Role Definition, Quotas
Published on
April 30, 2025
Sector: Manufacturer of data storage and management
Revenue: > $500M
Size: 250-person sales organization
Scope: Global
Impact: 10.8%Top-line sales growth
Business Approach:
- Client aimed to grow recurring revenue from 40% to 70% as it shifted its business from hardware to software
- During the transformation, client needed to balance focus between large existing install base with new market penetration
- Sales incentive plans focused on driving hardware sales rather than software sales and solution selling
- Original program overcompensated sellers for low to average performance and undercompensated high performers – driving mediocre performance
Approach:
- Qualitative information collected through internal stakeholder interviews
- Quantitative pay and performance assessment across roles and regions
- Market benchmarking for base salary, total target compensation, and total cash compensation
- Development of plan design frameworks and pros/cons of options
- Cost analysis of potential plan designs
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