CRO Rule #8 - The Most Underutilized Tool

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CRO Success Rule #8
Incentives are the most underutilized tool available to Chief Revenue Officers in terms of meeting their performance objectives.

Truly, there are certain things I encounter, when working with CROs, that are as consistent as an underutilized incentive plan (and strategy).  Salespeople are motivated by money in most instances.  That motivation will drive behaviors.  If you incent the motivation, you will elicit the behaviors you want.

That is a bit simplistic, but you get my point.  One thing all sales incentive programs should contain is that new business should pay out at a higher commission rate than existing (customer) business.  There are variations and adjustments needed to fit your plan, but this basic structure should always be followed.

I discuss margin incentives, threshold incentives, team incentives and more in the book if you are interested in learning more.