Return on Rewards: The Science of Motivation

#spicycomp

Incentives Work

How do we know: Stop smoking now!

How do we know: The Math Problem

Why don’t we use incentives more?

Wrong

Lack of Visibility

Misalignment

This is a BUSINESS problem

>2x

7%

36%37%

25%

FASTER REVENUE GROWTH

MORE REPSMAKEQUOTA

SHORTERSALESCYCLES

QUICKERSALES

LOWERSALES

TURNOVER

SOURCE: Aberdeen Dec 2011

Right tools: Leaderboards

Right tools: Mobile

Right tools: Integration

“Marrying CRM andcompensation datayields superior saleseffectiveness results.”– Aberdeen

“Integration of personal compensation with the CRM system will promote CRM adoption.” – Aberdeen

Best Practices

Variable Pay or Base Pay?

What's the best way to incent?Pay on discount %?

President's Club Eligibility?

Key Learning: What is great performance?

17% of your reps should be making more than 120% of quota:

Key Learning: How many measures?

Key Learning: Don’t lose your best reps

Key Learning: When do managers release bad reps?

18.6%

22.2%

IF THEMANAGER IS:

POOR REPTURNOVER IS:

5.6%ON THE MARGIN

MISSING QUOTA

HITTING QUOTA

Key Learning: When do managers offer quota relief?

In Practice: LinkedIn

Global Salesforce:Over 1,200 sales pro’s with a variety of offerings

Scope of Sales Operations @ LinkedIn:Sales Operations,

Systems, analysis, and strategy services

Sales DevelopmentHigh volume and quality lead generation

Sales ProductivityTraining, methodology, and related programs and systems

Sales Channels/Agency RelationsAgency partners and other sales channels

Brian FrankHead of Global Sales Operations

!Questions?