If you ask a sales person what motivates them, you might be in for a surprise. Because it's not what you expect conventionally conditioned coin-operated sales reps to say. Meaningful work, satisfaction and knowing that they are valued is the answer!
Like other employees, sales reps also come to work to do what they are best at, selling.
But if enough effort isn't put into motivating sales reps, they leave. And the cost of a sales person leaving is high.
Research shows that it takes 3 years on average for a sales rep to reach peak performance. 3 years is a considerable amount of time, so good reps should be seen as an investment. Unfortunately, this investment is entirely lost when a good rep leaves over sales commission issues – the #1 reason why sales reps leave.
But what’s the cost? According to a study, the average cost of replacing a rep is $115,000. And it takes an average of 6.2 months to replace a rep. With an average turnover rate of 28%, this is indeed a huge cost.
But why is losing reps so costly? Simply because the cost of sales rep is not just the tangible cost of salary + incentives paid to him but includes a lot of intangible and hidden costs.
So, the cost of losing a rep is a combination of recruitment costs of hiring a new sales rep + training costs of old rep + training costs of newly hired rep + the cost of lower performance in the training period of both the old and new rep + cost of lost business opportunities.
So why do sales reps leave?
The number one reason has got everything to do with incentives.
This isn't surprising at all, considering incentives are a major component of the pay structure for sales reps, making it crucial for organizations to get it right.
And that's where Compass comes in!
Compass is an unorthodox product built for orthodox problems in the most traditional function, sales. Compass is the ultimate personification of the bilateral vision of democratizing sales incentives and making sales fun and is judicious for all industries across geographies.
Compass helps you easily build complex incentive programs with the familiarity of Excel within a few clicks, choose a game template and publish the program, all under 10 minutes.
With Compass, the sales reps, managers, admins, HR teams, finance team and the management have real-time access to incentive statements. Having this data readily available motivates sales reps to see what they’ve earned and how they can earn more. Apart from motivating your sales team, Compass provides complete transparency into the actual calculations behind the numbers and your team can trust the numbers they see because they have visibility into how they’re calculated.
Compass also lets you automate the process and all changes can be handled with just a few clicks. It also saves a lot of time and eliminates inaccuracies and allows your team to spend time on other critical areas of the business.
With Compass, you can handle geographical tax implications and compliance before incentive payouts. You can consider any or all types of incentive payouts like bank transfers, reward catalog of more than 20000 digital gift cards, prepaid cards, experiences, and wallets across 80+ countries, credit notes or good old bank transfers. Payouts can be managed across multiple geographies & currencies seamlessly.
The secret to retaining a salesperson lies in discovering their “hot buttons” and making sales incentives crystal clear is the way.