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In an article written for the Harvard Business Review, author Steve W. Martin points out that sixty-nine percent of salespeople who exceeded their annual quota rated their sales manager as being excellent or above average. 

The conclusion that should be drawn from this study is simple- an excellent sales manager can lead the sales team toward higher turnovers. 

But like it or not, there is a catch. Over the years, the question- ‘What does it take to be a successful sales manager?’ has been revised, dismantled, and rebuilt to fit into the evolving business ecosystem. 

Typically, the sales manager came from the ranks of top salespersons and was given a leadership role as a reward without sufficient training. 

These days, sales managers may still be hired from among top salespersons, but they are expected to engage with their salespeople, coach them and make way for higher profit/loss ratios. Most sales managers struggle to keep up with this ever-changing demand of the role resulting in an exhausted sales team with a significantly low output. 

The good news is that there is a remedy- well-researched strategies backed by Sales Productivity Metrics! 

So if you are a sales manager looking to boost sales performance, here are some sales productivity metrics to help you do just that!


Till date, sales managers face a conundrum: How do you measure sales performance? The easiest way out would be to look at traditional sales metrics like goal or quota achievement, but the looming question is if these are the most efficient metrics to refer to? 

The threat is real! 

Choosing the wrong sales productivity metrics could have serious consequences- sales inefficiency, demotivates reps and an overall dip in the organization’s sales performance.

Therefore, it is important to identify sales productivity metrics that drill down into processes not just at the company level, but at the departmental and individual levels as well. 

This is easier said than done! Identifying sales productivity metrics can be hard. Chances are that you have already adopted an industry-recognized sales productivity metric, and realized that it just does not work for your business. 

There is a way out! Where should you start? 

With the basics! 

Our organizational goals revolve around achieving specific objectives and driving growth. To attain these goals, we have developed comprehensive Sales Compensation Plans that serve as a key strategy. These plans incentivize and motivate our sales team to actively contribute towards our objectives. The individuals responsible for working towards these specific goals include our sales representatives, managers, and the sales operations team. They collaborate to execute the Sales Compensation Plans effectively and ensure alignment with our organizational vision.

  • Is the sales productivity metric specific?
  • Can you measure the performance of the sales productivity metric?
  • Is your sales productivity metric attainable?
  • Is your sales productivity metric relevant to the goals of your organization?
  • What is the timeframe for achieving this sales productivity metric? 

In fact, many organizations are now taking the leap from SMART to SMARTER by adding evaluate and re-evaluate to the acronym. Sales productivity metrics should be constantly revised and evaluated to make sure they remain realistic and relevant. 

When sales productivity metrics are properly evaluated and implemented, they have the potential to-

  • Solidify the company’s philosophy and mission statement
  • Unify employees to work towards a common goal
  • Hold people accountable for their performance

It is true that sales productivity metrics are company specific, and a sales productivity metric that is working wonders for one organization may not work for another. 

How can Sales productivity Metrics Increase Sales Performance?

Sales performance metrics can increase sales performance in several ways:

  1. Clear Goals: Metrics help to set clear goals for sales reps, allowing them to focus on the areas that are most important to achieving success. This can lead to improved focus and motivation.
  2. Improved visibility: Metrics provide visibility into key performance indicators (KPIs) that are critical to sales success, such as conversion rates, average deal size, and win rates. This visibility enables sales reps to identify areas for improvement and take action to address them.
  3. Better decision-making: With access to accurate and timely data, sales reps and their managers can make better decisions about how to allocate resources, prioritize opportunities, and focus on the most profitable customers.
  4. Accountability: Metrics create a culture of accountability, where sales reps are held responsible for meeting their goals and are rewarded for their performance. This can motivate them to work harder and more effectively.
  5. Continuous improvement: Metrics help to identify areas for improvement and track progress over time. This can lead to a culture of continuous improvement, where sales reps are constantly striving to improve their performance.

Overall, sales performance metrics are an essential tool for improving sales performance. By providing clarity, visibility, and accountability, they can help sales reps and their managers to focus on the right areas, make better decisions, and continuously improve their performance. 

Here are three metrics right out of the magician’s hat that you can track for better insights into your sales performance!

10 Sales Productivity Metrics to Track for Better Sales Performance:

Here are some common sales productivity metrics:

  1. Sales Growth

    Sales growth measures the percentage increase or decrease in sales revenue over a specified period. It is one of the most important sales productivity metrics as it helps you determine whether your sales are increasing or decreasing over time. You can calculate sales growth by subtracting the previous period's sales revenue from the current period's sales revenue and then dividing the result by the previous period's sales revenue.
  2. Sales Pipeline

    The sales pipeline funnel serves as a visual depiction of the sales journey, monitoring the advancement of prospective customers through various stages. It provides insights into the number of leads present at each stage, their duration within the pipeline, and the necessary steps to propel them forward. A robust sales pipeline funnel indicates a consistent influx of leads and a heightened likelihood of successfully closing deals.
  3. Sales Cycle Length

    The sales cycle length measures the time it takes for a lead to become a customer. Tracking the sales cycle length can help you identify inefficiencies in your sales process, such as a lengthy approval process, and take corrective action. A shorter sales cycle length means  that you can close deals faster, which can lead to increased revenue.
  4. Lead Response Time

    Lead response time measures how long it takes your sales team to respond to a lead. This metric is critical as it can directly impact your conversion rates. The faster you respond to a lead, the more likely you are to close a deal. Ideally, you should aim to respond to leads within minutes of receiving them.
  5. Lead-to-Customer Conversion Rate

    The lead-to-customer conversion rate measures the percentage of leads that convert into customers. This metric is a good indicator of the effectiveness of your sales process. If your conversion rate is low, you may need to improve your lead nurturing efforts or re-evaluate your sales pitch.
  6. Average Deal Size

    Average deal size measures the average dollar value of a closed deal. This metric is important as it can help you determine the revenue potential of your sales team. A higher average deal size means that your sales team is closing larger deals, which can lead to increased revenue.
  7. Sales Activity Metrics

    Sales activity metrics track the number of activities your sales team performs, such as calls made, emails sent, and meetings held. These metrics are important as they can help you identify top performers and underperformers, as well as opportunities for improvement. By tracking sales activity metrics, you can also ensure that your team is working towards their sales goals.
  8. Win/Loss Ratio

    The win/loss ratio measures the percentage of deals won versus the percentage of deals lost. This metric can help you identify the strengths and weaknesses of your sales team and your sales process. If your win/loss ratio is low, you may need to improve your sales pitch or offer additional training to your sales team.
  9. Sales Forecast Accuracy

    Sales forecast accuracy measures how accurate your sales team's predictions are for future sales revenue. This metric is important as it can help you make informed decisions about resource allocation and budgeting. A high sales forecast accuracy means that your sales team is making accurate predictions, which can help you make more informed decisions.
  10. Customer Lifetime Value (CLTV)

    Customer lifetime value measures the total revenue that a customer is expected to generate over their lifetime. This metric is important as it can help you determine the revenue potential of each customer and identify opportunities for upselling and cross-selling. By tracking customer lifetime

Final Thoughts:

Tracking sales productivity metrics is not easy and best practices are still not laid out coherently. Therefore, an intelligent automation solution to track and monitor your sales productivity metrics is exactly what you need. 

To know more about how you can track your company’s metrics in real-time to boost sales performance, book a demo today!

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How to Measure Sales Performance: 10 Sales Productivity Metrics to Track!
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If you are involved in sales, your team probably has a sales strategy in place!

A sales strategy is essentially a series of recurring steps that your reps take to make a sale. How are the leads distributed amongst reps? When and how does the first outreach happen with a prospect? What preparation needs to happen before a demo? 

All of those decisions, tasks and to-dos from first contact to closing make up your sales process. A bible that your reps swear by, so to say. 

In today’s changing business environment, B2B selling presents unique challenges- there are more stakeholders in the process, deal cycles are longer, and remote working has become the norm. We’ve compiled everything you need to know about the B2B sales process in this article!


To put it simply, a sales strategy is a plan or approach that a business or organization develops to sell its products or services. 

It involves identifying target customers, analyzing their needs and preferences, and creating a plan to reach out to them and convince them to make a purchase.

A sales strategy typically includes several key components such as-

  • Setting sales goals
  • Identifying target markets
  • Defining the value proposition of the product or service being sold
  • Identifying effective sales channels 

The strategy may additionally encompass the creation of distinct sales team roles and the implementation of metrics to monitor sales performance and gauge the effectiveness of the strategy.

Therefore, a sales strategy is a comprehensive plan that outlines how a business will achieve its sales objectives, and it is a critical component of any successful sales operation.

Why is a Sales Strategy Important?

A sales strategy is important because it provides a clear roadmap for a business to generate revenue and achieve its sales objectives. 

A well-defined sales strategy helps to focus efforts and resources towards the most promising opportunities, while also allowing a business to identify potential roadblocks and risks that could impede success.

Here are a few reasons why a sales strategy is important:

  1. Maximizes Revenue: A sales strategy helps a business to identify and prioritize the most lucrative opportunities, and to focus its resources on converting those opportunities into revenue.
  2. Targets Ideal Customers: A sales strategy allows a business to identify its ideal customers and tailor its approach to meet their specific needs and preferences. This can increase the likelihood of success and build stronger customer relationships.
  3. Aligns Sales and Marketing: A sales strategy helps to align sales and marketing efforts, ensuring that both teams are working towards the same goals and objectives.
  4. Identifies Challenges: A sales strategy allows a business to identify potential roadblocks and risks that could impede success, and to develop contingency plans to address those challenges.

Overall, a well-designed sales strategy is crucial to the success of any business that wants to grow and thrive in a competitive market.

What is B2B Sales?

B2B sales (Business-to-Business sales) is a type of transaction in which one business sells products or services to another business. It is the process of selling goods or services from one business to another business, rather than to individual consumers.

The buying process is usually more complex and involves longer sales cycles and higher order values than in B2C (Business-to-Consumer) sales. B2B sales often involve negotiations, contracts, and long-term relationships between businesses.

B2B sales can occur through various channels including- 

  • Direct sales
  • Distributors
  • Wholesalers
  • Online marketplaces 

The goal is to build relationships and create value for both parties involved in the transaction.

What is the B2B Sales Process?

B2B (Business-to-Business) sales process is a set of activities that are designed to help businesses sell their products or services to other businesses. 

It involves a series of steps that are taken by a seller to identify, contact, and persuade potential buyers to purchase their products or services.

The B2B sales process typically involves the following steps:

  1. Prospecting: This is the stage where the seller identifies potential customers who may be interested in their products or services. This can be done through various means such as referrals, networking, or cold calling.
  2. Qualifying: Once the potential customers have been identified, the seller needs to determine if they are a good fit for their products or services. This involves gathering information about the potential customer's needs, budget, decision-making process, and timeline.
  3. Presenting: This is the stage where the seller presents their products or services to the potential customer. The presentation should be tailored to the customer's needs and should highlight the benefits of the seller's products or services.
  4. Handling objections: During the presentation, the potential customer may have objections or concerns that need to be addressed by the seller. The seller should be prepared to handle these objections and provide satisfactory answers.
  5. Closing: This is the stage where the seller asks the potential customer to make a purchase. The seller should be prepared to negotiate the terms of the sale and provide any necessary paperwork or contracts.
  6. Follow-up: After the sale has been made, the seller should follow up with the customer to ensure that they are satisfied with their purchase and to address any issues that may arise. This can help build a long-term relationship with the customer and increase the likelihood of future sales.

The B2B sales process requires a deep understanding of the customer's needs, effective communication and negotiation skills, and the ability to build long-term relationships with customers.

What is a B2B Sales Strategy?

A B2B sales strategy refers to the approach a company takes to sell its products or services to other businesses. 

The distinction between B2B (business-to-business) sales and B2C (business-to-consumer) sales lies in the emphasis placed on cultivating enduring relationships with other businesses, rather than solely aiming for a single transaction. This variance in approach also reflects in the sales compensation plan, where the focus shifts towards rewarding and incentivizing sales representatives based on their ability to establish and nurture long-term business partnerships, rather than purely on individual one-time sales.

Some common elements of a B2B sales strategy include:

  1. Targeting the right audience: A B2B sales strategy should start with identifying the target market, which could include specific industries, company sizes, or geographic locations.
  1. Building a strong brand: Building a strong brand image is essential for B2B sales success, as businesses want to work with reputable and reliable partners.
  2. Establishing credibility: Demonstrating expertise and credibility in the industry is key to building trust with potential clients.
  1. Creating customized solutions: Offering customized solutions tailored to the specific needs of each client can help build stronger relationships and lead to repeat business.
  1. Providing excellent customer service: Providing excellent customer service and support can help build loyalty and trust, as well as provide opportunities for upselling and cross-selling.
  1. Developing a sales pipeline: Developing a sales pipeline involves identifying potential leads, nurturing those leads, and ultimately closing sales.

Final Thoughts:

In conclusion, effective sales funnel management is crucial in the intricate and ever-changing domain of B2B sales. Achieving success in this field relies on employing a strategic and customer-centric approach. This involves gaining a comprehensive understanding of the customer's needs, pain points, and goals, and then crafting solutions that adeptly meet those requirements. Such proficiency demands a thorough grasp of the industry, prevailing market trends, and the competitive landscape. By skillfully managing the sales funnel, businesses can navigate the complexities of B2B sales and optimize their chances of achieving favorable outcomes.

Moreover, building strong relationships with customers is essential in B2B sales. This involves effective communication, active listening, and building trust through transparent and ethical business practices. 

Sales professionals should also focus on adding value to their customers by providing helpful information, resources, and insights that can help them make better decisions and improve their business outcomes.

Finally, technology and data analytics play an increasingly important role in B2B sales. Sales teams can leverage advanced tools and platforms to streamline their processes, automate repetitive tasks, and gain valuable insights into customer behavior and preferences. 

By staying up-to-date with the latest trends and innovations, B2B sales professionals can stay ahead of the curve and achieve long-term success in this rapidly-evolving field.

Book a demo today to learn more about how automation can ease your B2B process pain

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In today's rapidly changing business landscape, organizations must adapt to stay competitive. One area that requires constant evolution is the sales function. 

Sales transformation is the process of reimagining and optimizing sales strategies, processes, and technologies to drive growth and improve performance. 

However, achieving sales transformation success is no small feat. It requires careful planning, effective execution, and a commitment to continuous improvement. 

In this blog, we will guide you through a step-by-step approach to help you navigate the journey of sales transformation.

What is Sales Transformation?

Sales transformation refers to the process of fundamentally changing and improving the way a company conducts its sales activities in order to achieve better results and adapt to evolving market conditions. 

It involves a strategic and holistic approach to redefining sales processes, structures, technologies, and skills to drive growth, increase revenue, and enhance customer satisfaction.

Sales transformation typically involves a combination of organizational changes, process improvements, and technology implementations aimed at optimizing the entire sales cycle.

Benefits of Sales Transformation:

Implementing a sales transformation can offer several benefits to businesses. Here are some of the key advantages:

  1. Improved sales performance: 

    Sales transformation initiatives target the improvement of sales team roles by enhancing their effectiveness, efficiency, and overall performance. Through the optimization of sales processes, utilization of data-driven insights, and adoption of best practices, organizations can successfully attain higher sales volumes, increased revenue, and improved sales productivity within the sales team.
  2. Enhanced customer experience: 

    With customer-centric approaches, organizations can provide personalized experiences, tailored solutions, and seamless interactions throughout the sales cycle. This leads to higher customer satisfaction, loyalty, and increased customer lifetime value.
  3. Better sales team effectiveness: 

    By implementing effective sales coaching tips, organizations can empower their sales representatives with the essential skills, knowledge, and tools to excel in their roles. This comprehensive training, coaching, and support contribute to increased employee engagement, motivation, and retention, resulting in a highly productive and successful sales force.
  4. Adoption of innovative technologies:

    Sales transformations often involve the integration of advanced technologies, such as customer relationship management (CRM) systems, sales automation tools, analytics platforms, and artificial intelligence (AI) solutions. These technologies enable organizations to streamline sales processes, automate repetitive tasks, gain actionable insights, and improve decision-making, ultimately driving sales growth and efficiency.
  5. Agility and adaptability: 

    The aim of a sales transformation strategy is to promote organizational agility and the ability to adapt to changing market dynamics. By continuously evaluating and optimizing sales strategies, processes, and resources, businesses can respond quickly to market shifts, competitive challenges, and emerging trends. This flexibility allows organizations to stay ahead of the competition and seize new opportunities in a rapidly evolving business landscape.
  6. Data-driven decision-making: 

    Sales transformations emphasize the use of data analytics and metrics to inform sales strategies, identify trends, measure performance, and drive decision-making. By leveraging data, organizations can gain deeper insights into customer behavior, sales

    patterns, and market dynamics, enabling them to make informed and data-driven decisions to optimize sales outcomes.
  7. Alignment between sales and other departments:

    The process of sales transformation frequently entails dismantling silos and cultivating cross-functional collaboration within the sales funnel and pipeline. By aligning sales with other departments such as marketing, product development, and customer service, organizations can create a unified approach to customer engagement and maximize the value delivered throughout the customer journey.

10 Steps for Sales Transformation Success:

Step 1: Assess Your Current Sales Processes

Begin by evaluating your existing sales processes, methodologies, and tools. Identify the strengths and weaknesses of your sales team and pinpoint areas that require improvement. This assessment will serve as a baseline for your sales transformation efforts.

Step 2: Define Your Sales Transformation Objectives

Clearly define your sales transformation objectives based on your organization's goals and market conditions. Set specific, measurable, achievable, relevant, and time-bound (SMART) goals. Examples could include increasing revenue, improving conversion rates, or enhancing customer satisfaction.

Step 3: Develop a Sales Transformation Strategy

Create a comprehensive sales transformation strategy that aligns with your defined objectives. This strategy should outline the changes required in your sales processes, technology, training, and organizational structure. Consider factors such as target market, competition, and evolving customer needs.

Step 4: Communicate the Vision and Gain Buy-in

Clearly communicate the sales transformation vision and strategy to your sales team and stakeholders. Explain the reasons behind the transformation and how it will benefit both the organization and individual sales representatives. Address concerns, answer questions, and actively seek buy-in from all involved parties.

Step 5: Invest in Sales Enablement Tools and Technology

Identify and invest in sales enablement tools and technology that can streamline your sales processes and improve productivity. These could include customer relationship management (CRM) software, sales analytics platforms, sales automation tools, or communication and collaboration platforms.

Step 6: Provide Comprehensive Sales Training

Ensure that your sales team receives comprehensive training to develop the skills and knowledge needed to adapt to the transformed sales processes. Offer training programs that cover sales techniques, product knowledge, customer relationship building, and effective use of sales technology tools.

Step 7: Establish Clear Metrics and Tracking Systems

Define key performance indicators (KPIs) that align with your sales transformation objectives. These KPIs could include metrics like revenue growth, conversion rates, average deal size, or customer satisfaction scores. Implement a tracking system to monitor progress and regularly analyze the data to identify areas for improvement.

To know more about KPIs, read our article Want to measure your sales performance? Track these KPIs

Step 8: Foster a Culture of Continuous Improvement

Encourage a culture of continuous improvement within your sales organization. Regularly review and refine your sales processes, strategies, and training programs based on feedback and data-driven insights. Foster an environment that encourages innovation, collaboration, and the sharing of best practices among your sales team.

Step 9: Provide Ongoing Support and Coaching

Offer ongoing support and coaching to your sales team throughout the sales transformation process. Provide regular feedback, conduct performance evaluations, and offer guidance to help individuals improve their sales skills and achieve their targets. Invest in sales coaching programs or consider assigning mentors to support sales representatives.

Step 10: Evaluate and Celebrate Success

Regularly assess the achievements of your sales transformation endeavors in alignment with the defined objectives and key performance indicators (KPIs) within the sales compensation plan. Commend significant milestones and acknowledge the contributions of individuals and teams who have played a role in the success of the sales transformation. Adapt your strategy as necessary to maintain the positive changes and tackle any remaining challenges within the framework of the sales compensation plan.

A good Sales Performance Management software can be your step one towards sales transformation! 

Kennect’s SPM streamlines operations, automates menial tasks and aligns processes so that your top sales people are free to do what they do best. Sell! 

Book a demo today!

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How many of your salespeople attain their sales quota consistently? Surely that's a hard enough answer that pours a lot of insight into your business operations. 

But what can actually bring that consistent competency in the salesforce to ensure a good sales attainment rate? 

Organizations do put a lot of effort in cracking down ways to increase quota attainment, so let us make the task easy for you by helping you master strategies to improve your average quota attainment. 

The article gives you a brief overview on sales quota attainment. Tips to improve your quota attainment and how to analyze it. 

So scroll down for more. 

What is Sales Quota Attainment?

Sales quota attainment is the sales metric that calculates the sales performance based on quotas achieved by the sales rep for a time period. Sales quota attainment is calculated using the formula

Sales quota attainment= Total Sales/ Sales Quota x 100

Attaining sales quotas are crucial to the company’s growth and success, as sales quotas are assigned as a part of the larger growth plans of the organization. Failing to achieve one’s quota only slows down the prospects of the company. 

Hence, here are a few tips to ensure improved quota attainment by sales reps.    

Tips to improve sales quota attainment

  • Attainable company objectives

As mentioned above, sales quotas are only an extension of the company objectives set for that year. Hence, while planning company objectives, management must take a holistic analysis of their organizational structure, workforce, their potential, and skills to ensure that these targets aim to motivate their employees to perform better than bring a negative result. 

  • Realistic sales quota planning

While setting sales quotas, managers must always ensure that these targets align with their potential and motivate them to better perform. When sales reps are assigned unrealistic and unattainable targets, surely they will be put off which will only result in poor performance, engagement, and increased turnover. 

  • Understanding the salesforce 

Managers must be well aware of their salesforce. Their potential, capacity, skills, and motivation to get the work done on time and properly. They must be aware of each salesperson’s ramp-up time and give them the time, resources, and space to build their ability.   

  • Sales coaching and training 

Sales coaching tips are crucial for enhancing sales performance and recognizing the significance of regular coaching and training. Training equips sales representatives with knowledge about effective tools and techniques for boosting sales. On the other hand, coaching involves individual meetings between sales managers or coaches and sales reps, wherein they identify areas for improvement.

  • Automating sales performance tracking

The best way managers can keep track of their salesforce performance and suggest ways of improvement is through automation. Setting the sales performance management in cruise mode gives a data-driven report on the performance and improvement of salespeople that can effectively improve sales attainment. 

  • Proper Incentivizing 

A transparent sales incentive plan that aligns with the assigned sales quota can do wonders in improving the salesforce’s performance and quota attainment. Organizations must ensure their compensation plans are a source of motivation as well as they have clarity in the incentive they receive at the end of the quarter or year. Transparency and clarity will play a major role in improving sales performance. 

How to analyze sales quota attainment?

Sales quota attainment is a metric that gives a brief overview of sales performance. A higher sales attainment suggests the effectiveness of the sales plans and strategies taken up by the salesforce while setting their sales funnel

While a lower sales attainment rate gives the insight that there are areas the sales manager and team must look into for better performance. These areas can include lead generation, conversion rates, sales rep ramp rate, the efficiency of tools and techniques incorporated, and many more. 

Hence, regularly keeping track of your sales quota attainment gives a quantitative analysis of your sales team's performance and efficiency. 


On the hind side, sales quota attainment analyzes sales performance based on just one factor which is revenue generated. 

But is sales performance just based on the conversion rate of customers and closing of deals? Shouldn't there be more to assessing your workforce’s sales performance?

Sales performance management gives you a data-driven insight into the performance of your salesforce and helps in driving revenue with better-informed planning, managing, and decision-making of sales strategies. 

Kennect automates your sales performance management and incentive compensation management for better sales attainment. To know more, Book A Demo Today! 

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Mastering Sales Attainment: Strategies for Reaching and Exceeding Targets
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In the world of sales, motivation and performance are key factors that determine the success of any team. 

To drive sales and encourage top-notch results, it is crucial to establish effective incentive structures. 

When it comes to sales team roles, two popular options for incentive plans are bonuses and commissions, each offering distinct advantages and considerations. It is crucial to comprehend the disparities between these two incentive structures in order to choose the most suitable option for your sales team.

In this blog, we’ll explore the ‘bonus vs commissions’ debate and try to understand which one might be the best fit for your organization.

Understanding Bonuses:

A bonus is a one-time reward given to an employee for achieving specific goals or milestones. 

It is typically a fixed amount or a percentage of the employee's base salary.

Bonuses can be tied to individual, team, or company-wide objectives, such as meeting sales targets, exceeding revenue goals, or launching a new product successfully.

Advantages of Bonuses:

  1. Flexibility: Bonuses allow management to set specific criteria for performance evaluation and reward sales representatives accordingly. This flexibility enables you to align bonuses with your business objectives and adapt them as needed.
  2. Motivation for non-sales roles: Bonuses can be extended to employees in non-sales roles who contribute to the overall success of the sales team. This can foster a sense of collaboration and motivate cross-functional teams to support the sales effort.
  3. Rewarding team efforts: Bonuses can incentivize teamwork and cooperation. By linking bonuses to team goals, you encourage collaboration and foster a supportive work environment.

Considerations for Bonuses:

  1. Short-term motivation: Bonuses often serve as short-term motivators, providing immediate gratification for achieving specific targets. However, they may not sustain long-term performance improvement or maintain consistent motivation throughout the year.
  2. Fixed costs: Bonuses represent a fixed cost to the organization. Allocating budget for bonuses can be challenging, especially during periods of financial constraints or when performance goals are not met.

Understanding Commissions:

Commissions are a form of variable compensation directly tied to the sales representative's performance. 

Salespeople earn a percentage of the revenue they generate or the value of the products they sell. 

Commissions are commonly used in industries with direct sales, such as real estate, insurance, and retail.

Advantages of Commissions:

  1. Performance-driven: Commissions directly link earnings to sales performance, providing a strong incentive for sales representatives to exceed targets and maximize their income. This structure encourages a results-oriented approach and rewards top performers accordingly.
  2. Scalability: In terms of sales compensation plans, commissions have the ability to align with business growth since sales representatives earn higher payouts as they generate increased revenues. This aspect makes commissions particularly well-suited for businesses with ambitious growth plans.
  3. Cost control: Commissions are variable expenses directly tied to revenue generation. This allows organizations to manage costs more effectively, as the commission payout is proportionate to the sales achieved.

Considerations for Commissions:

  1. Individual focus: Individual incentives in commission structures tend to place a strong emphasis on individual contributions. While this approach can foster healthy competition, it may also result in a less collaborative environment among team members.
  2. Commission-only structure: A commission-only structure can attract highly motivated individuals who thrive on the potential for high earnings. However, it may limit the pool of candidates, as some individuals prefer a more stable base salary.

The difference between Bonuses and Commissions:


  • Bonus: Bonuses can be awarded to employees across different roles and departments within a company. The eligibility criteria for receiving a bonus may vary, and it can be based on individual, team, or company-wide performance.
  • Commission: Commission is typically offered to employees in sales roles or those directly involved in revenue generation. It is usually tied to specific sales targets or quotas that need to be met in order to receive commission payments.


  • Bonus: Bonuses can be awarded at various times throughout the year, depending on the company's policies and practices. They can be given annually, quarterly, or even as one-time bonuses for exceptional performance or achievements.
  • Commission: Commission is typically earned and paid out on a more regular basis, often monthly or quarterly. It is directly linked to the sales generated during a specific period.

Payment Frequency:

  • Bonuses: Bonuses can be awarded on various schedules, depending on the organization's policies and practices. Some companies provide bonuses annually, while others may offer them quarterly, semi-annually, or on special occasions. 
  • Commissions: Commissions are usually paid on a more frequent basis than bonuses since they are directly tied to sales activities. The payment frequency for commissions can vary, but it is often monthly or quarterly to provide timely rewards for sales efforts.

It's important to note that the specific policies and practices regarding bonuses and commissions can vary between different organizations and industries. 

Finding the Right Fit for Your Sales Team:

When deciding between bonuses vs commissions, it's essential to consider the specific dynamics of your sales team and organization. Here are a few key factors to consider:

  1. Sales Structure: Assess your sales structure and determine if it aligns better with a bonus or commission system. If your sales process involves large, complex deals that require significant time and effort, a commission-based system might be more suitable. On the other hand, if your sales involve smaller, recurring transactions or team-based efforts, a bonus system could be more effective.
  2. Sales Cycle Length: Consider the length of your sales cycle. If your sales cycle is longer, it may take a considerable amount of time before commission-based rewards are realized. In such cases, a combination of base salary and periodic bonuses may be more motivating for your sales team.
  3. Motivation and Performance: Evaluate how bonuses and commissions can impact motivation and performance. Some salespeople thrive on the competitive nature of commissions and may be more driven to achieve targets. Others may be more motivated by the immediate gratification of bonuses tied to specific milestones or achievements. Understanding the preferences and motivations of your sales team can help you make an informed decision.
  4. Financial Impact: Assess the financial impact of bonuses and commissions on your organization. Commission-based systems tie rewards directly to sales performance, which can be financially advantageous when sales are high.

    However, during slower periods or when sales targets are not met, it can place additional financial strain on the organization. Bonuses, on the other hand, can provide more predictable and controlled expenses, but they may not provide the same level of direct alignment with sales outcomes.
  5. Team Dynamics: Consider the impact on team dynamics and collaboration. Commissions, particularly when individually focused, can sometimes create a more competitive and potentially less collaborative environment. If teamwork and collaboration are crucial to your sales process, you may want to lean towards a bonus system that encourages collective effort and shared success.
  6. Industry and Market Norms: Research industry and market norms to understand what compensation structures are commonly used. It's important to strike a balance between being competitive and aligning with industry standards while also considering what works best for your specific sales team and organization.

Ultimately, the decision between using bonuses vs commissions should be based on a comprehensive understanding of your sales team, organizational dynamics, and objectives. 

You may also consider a combination of both approaches, tailoring the structure to incentivize the desired behaviors and outcomes. 

Regularly reviewing and fine-tuning your compensation structure based on feedback and performance data can help optimize the effectiveness of your sales incentive system.

To know more about how Incentive Compensation management can help you build a data-driven strategy designed to win, book a demo with us!

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Sales performance management
Bonus vs Commission: Which Incentive Structure Is Right for Your Sales Team?
minutes read

Yes, you do use a sales pipeline for better managing your qualified leads! But do you analyze your pipeline coverage to enhance your sales performance?

Surely a sales pipeline does help you keep track of your leads’ journey as they move from awareness to decision. It does equip you to make better decisions based on your potential customer’s journey.

But these are just representations! Do you have numbers to tell you whether you are on the right track or where you need to focus? 

Then it's high time you start calculating your sales pipeline coverage. 

This article gives you a brief overview of what is pipeline coverage, how it is calculated, what benefits it provides to a salesforce, the best practices to improve your pipeline coverage, and why pipeline coverage analysis is so important.

So delve into this article for more. 

What is pipeline coverage?

Sales pipeline coverage refers to the ratio between the sales opportunities in a salesperson’s pipeline to their sales quota. 

 Sales pipeline coverage= Total revenue in the pipeline/ sales quota

According to the traditional sale thumb rule, the ideal ratio of a sales pipeline coverage is 3:1. But salesforce is always advised to have twice the sales opportunity in their pipeline compared to their sales target to be on the safer side. 

For example: when a salesperson has sales prospects of $40000 in their pipeline and their sales quota is $10,000 then their pipeline coverage is calculated as 

$40000/$10000= 4:1

So according to the pipeline coverage ratio, the salesperson is rich in his pipelines. This also means that they must focus on strategizing conversation rates as the lead generation is already taken care of. 

While a person with a lesser pipeline coverage, says a 1:1, must focus on lead generation to improve their ratio. 

Hence, consistently calculating your sales pipeline coverage helps the salesforce to keep track of their efforts, understand where they need to improve, prioritize the potential leads in the pipeline and strategize personalized and effective sales plans for better closing of deals. 

What are the best practices to improve pipeline coverage?

There are several ways in which a sales team can enhance your pipeline acceleration tactics. Some of these key tactics are: 

  • Keep track of your pipeline

Consistently keeping track of your pipeline helps you understand the effectiveness of your efforts better. Having clarity on who is a better prospectus with a higher conversion rate helps strategize sales plans accordingly to increase your conversion rate. Knowing where you stand in the competition better equips you to improve your pipeline coverage ratio. 

  • Understand areas of improvement

Introspection on where you fall back and what are your strengths helps work towards improvement. The pipeline coverage formula provides a clear idea of where you need to focus. A lower pipeline coverage ratio means you need to work on lead generation and a higher ratio means focus must be on conversion rates. 

  • Personalize sales strategize

Randomly sending sales campaigns to potential leads only lowers your chances of conversion. Qualified leads can be impressed by mail that is addressed to them and contains content that catches their attention. Hence, personalized strategies improve your sales pipeline and coverage ratio. 

  • Stay competent 

The need to stay relevant, skilled, and competent in the industry is very crucial in sales. Upskilling yourself regularly, staying up-to-date about the market changes, and being well informed about the competitors help in better sales pipeline performance. 

Why is pipeline coverage analysis important?

Any tool and technique that helps a salesperson to improve their work must be taken into account with utmost importance. And a sales pipeline is one such tool that ensures efficient and seamless tracking of one’s progress in sales performance management. 

Hence, regularly keeping track of your sales pipeline and maintaining a pipeline coverage analysis only better the performance of the sales team to understand their productivity as well as have clarity in their sales compensation plan. 

Pipeline coverage gives salespeople a better understanding of their incentive compensation by the end of the quarter and where they need to work to improve for better results. 

But simply following the pipeline doesn't ensure clarity and transparency in the way incentive compensation is managed. For such an experience in sales management automation is the best choice. 

Kennect runs your sales compensation management  in cruise mode and automates your incentive compensation plans to create transparency & achieve operational efficiency. To know more BOOK A Demo Now!

Sales performance management
Understanding Pipeline Coverage: What It Is and Why It Matter
minutes read