Our client, a global payments fintech, was looking to grow in new markets while improving its position in its core markets.
However, they were facing different dynamics in each market and customer segment, making it harder to seize opportunities with a uniform approach to their incentive scheme as well as sales and account management compensation.
The company had a dedicated sales team focused on acquiring new customers and an account management team responsible for growing relationships with these new customers. Despite a technologically strong product, our client struggled to achieve the same level of success in new markets and faced slowing growth in core markets, even with the product’s potential. The client needed a strategy to ensure all members – from entry level to the topmost - of their sales and account management teams were motivated and incentivized appropriately to drive key business objectives:
- New market entry: Achieving success in new, less mature markets
- Existing market growth: Growing the business in core markets to its potential
Aligning objectives and developing a tailored incentive scheme.
Our team facilitated alignment on objectives across different business units and roles, ensuring that all stakeholders were driving toward common goals. This was crucial for maintaining coherence and focus throughout the organization.
Identifying key challenges in meeting these objectives was the next critical step. We leveraged our expertise and market research to outline relevant best practices and benchmark against industry standards, providing a clear picture of where the client stood relative to competitors.
Overlaying this information with the goals, we developed and shortlisted relevant schemes and structures. This included the tailoring by role, vertical, and channel to ensure each set of employees was optimally incentivized.
Working sessions with senior leadership and key employees, coupled with employee level impact analysis were used to develop the most effective incentive model. This allowed us to predict outcomes and adjust the model to maximize overall performance.
The final step was to provide tools to measure performance, calculate pay-outs, and adjust parameters as needed. These tools enabled ongoing monitoring and refinement of the incentive schemes.
Driving better performance and achieving sustainable growth in a highly competitive market.
Through a structured and data-driven approach, we helped our client enhance their incentive models.
A tailored commission structure and incentive scheme for new sales and account management teams addressed the specific needs of various business lines, markets, and channels.
1. Core commission model: Commission rates linked to the attainment of targets – lower performance gets lower rates while higher performance earns higher rates.
2. Retention/motivation add-on: High performers receive a boost for their next commission period and this builds further with continued overperformance.
3. Hurdles: Basic requirements, such as filling out the CRM and adhering to deal. approval processes, were introduced as hygiene factors - necessary for salespeople and account managers to fulfill in order to receive their compensation.
4. Adaption by hierarchy: The commission, add-ons, hurdles were adjusted by role within respective teams to align with responsibilities, expectations, and overall compensation.
5. Additional rewards: In growing markets where earnings might be less attractive, we shifted the focus to achievement-based rewards. Employees earn rewards for securing specific types of customers or achieving predefined actions that generate future revenue. This ensures compensation is motivating even in less mature markets.
Our model ensures employees are motivated and rewarded appropriately, reflecting their contribution to the business's success.
Within the first year of implementation, our client was able to surpass their commercial objectives, demonstrating the effectiveness of the new schemes and strategic alignment.
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