Sales executives are well aware of the power of using sales incentives to drive performance, yet defining the right metrics can be challenging. This challenge is exacerbated when salespeople are charged with negotiating prices as well as delivering volume.
Unfortunately, the common metrics used for sales performance tend to be either poorly aligned with the profit motives of the company or to suffer one of the numerous drawbacks of oversharing sensitive information, under-sharing information in a timely manner, overwhelming complexity, and other deficits. To correct these challenges, sales executives need a simple, profit-aligned metric to assess salespeople's performances.
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