no commissions. no quotas.
"What is the next generation of sales incentives and metrics?"
Graham Hawkins: Founder, CEO, and Bestselling Author @ SalesTribe
Commissions and quotas are a lose-lose scenario: for the consumers who regret buying after a hard sales push; and for desperate sales reps who are caught between losing customer focus and losing their jobs. Buyers in particular are aware of everything now. They know self-interest drives salespeople with commissions and quotas, and they know they have more reliable sources of verification in trusted referrals. Couple this with 70% of customer lifetime value now being generated post initial sale, and a long-term strategy becomes essential. Brands must keep consumers happier for longer.
KPIs tied to net promoter scores (NPS), retention rates, and other customer-centric metrics are more sustainable alternatives to traditional quotas. Meanwhile, rewards that encourage employee fidelity, such as company equity, can prove stronger incentives than traditional commissions. Many companies, including large corporations like Amazon Web Services, are adopting this strategy to encourage positive sales behavior and reduce employee churn. This alignment between buyer and seller makes business better for everyone. Companies must adapt, for the pendulum has swung to the buyer. And it's not coming back.