Boosting Sales Performance through Sales Compensation Design

Case Study

Driving 15% Revenue Growth and Improving Sales Engagement by 25% with a New Compensation Structure

Challenge

A $500 million distributor in the construction materials industry was facing inconsistent sales performance. The company’s sales compensation plan lacked clear incentives for high achievers and failed to drive the desired revenue growth. The existing structure did not effectively align with business goals, leading to low motivation and missed revenue targets.

Approach

Revenue Blueprint collaborated with the client to design a performance-driven sales compensation plan that motivated the team to exceed targets while aligning with overall business objectives:

  1. Compensation Analysis: We conducted an in-depth review of the existing compensation structure and identified gaps in incentivizing top performers and driving consistent sales behavior.

  2. Goal Alignment: Working with the client’s leadership, we aligned compensation metrics with key business objectives such as revenue growth, customer retention, and margin improvement.

  3. Tiered Incentive Plan: We developed a tiered incentive structure that rewarded high performers for exceeding quotas, while providing balanced rewards for team collaboration and long-term client relationships.

  4. Implementation and Rollout: We supported the client in rolling out the new compensation plan, providing training for sales managers to ensure clarity and buy-in across the team.

Impact

  • Increased Revenue: The new compensation structure drove a 15% increase in revenue within the first year by incentivizing top performers and aligning efforts with company goals.

  • Higher Sales Engagement: The tiered plan improved team morale and motivation, leading to a 25% improvement in sales team engagement.

  • Consistent Goal Achievement: The redesigned plan ensured 85% of the sales team consistently met or exceeded their revenue targets, up from 60% previously.

Conclusion

Revenue Blueprint’s sales compensation design helped the client drive stronger sales performance and increase revenue by aligning incentives with business goals. The new compensation structure motivated the team to deliver consistent results and fostered a culture of high achievement.