We’ve heard that accelerators should be included in commission plan management, to increase sales team productivity. An accelerator allows sales reps to get higher percentage per deal closure. This is really helpful when providing an extra incentive for reps to reach higher targets and goals.
Sales team productivity at your fingertips
Accelerator are key to every competitive compensation structure. It is almost always applied for performance that exceeds 100%; therefore, your sales representatives will always do their best to go exceed goals and go the extra mile.
Be careful! Think really hard on how high the accelerator is going to be, sales departments have to take care of the revenue.
The Harvard Business School has stipulated in a study that the use of accelerators drives over 13% higher revenues and 2% higher profit than models that do not include accelerators. It is all about placing your sales reps on a clear path for success.
There are different ways to do Accelerator planning, but Blitz, recommends doing it by Earnings Factor. What does that mean? The resource’s commission payment increases without affecting the level of quota achievement. For example, if someone sells around 70% to 90% of his quota, he obtains certain commission. If that same person sells from 91% to 110%, he gains a higher commission. And, if he sells more than 110%, he obtains an even greater incentive.
Motivated sales people make for a happy company, so get creative with how you reward your soldiers, and let Blitz handle the details. They’ll work harder and you’ll work less. Blitz is 99% less expensive than replacing a good sales guy, so we’d say the ROI is definitely there.
Source
- Insite Partners
- Book: Chung, Doug J., Thomas Steenburgh, and K. Sudhir. “Do Bonuses Enhance Sales Productivity? A Dynamic Structural Analysis of Bonus-Based Compensation Plans.” Harvard Business School Working Paper, No. 13–066, January 2013