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Greetings!
For those of you getting a late start on your sales compensation design process for the new year (and I know you're out there), this month's newsletter will provide some last minute help in clarifying your sales roles. The subject we're tackling is one of sales role prominence and how it impacts the very definition of a selling role as well as the design of an appropriate compensation arrangement. So, if you find yourself a bit behind the proverbial eight ball,
you can quickly increase your prominence in the clarification
of selling roles and the design of effective sales compensation plans
by reading this month's article. Best regards, |
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| by J. Mark Davis |
A Helpful Framework
If you’ve been involved with the task of defining sales roles and creating incentive compensation plans for them, you’ve likely heard the term “prominence” as a factor that helps define both the role as well as provide directional clues as to the appropriate sales compensation design. So, what is prominence and why is it important to evaluate? In this first part of a two-part article, we’ll define prominence and take a look at how to determine the prominence of a sales role. Next month’s article will follow with the very prominent implications for sales compensation design. Referencing a chapter that I wrote in The Sales Compensation Handbook – Second Edition (published by Amacom), prominence is defined as: The influence of the sales rep in the mix of all the marketing variables that collectively create the message heard by the buyer. In other words, prominence is a measure of the degree of influence or personal persuasion a sales role has on the customer buying decision. It is not an absolute measure, nor is it easily quantified. Instead, it captures the relative influence of the sales role compared to all of the other variables in the marketing mix that create a competitive profile for a product or service (e.g., product quality, advertising, price, and post-sale service). When prominence is high, the sales rep is heavily involved in differentiating the company's offering from those presented by the competition. When prominence is low, the sales rep is unable to exert much positive influence on the customer's buying decision. Prominence is important to gauge as it has a direct impact on a number of key sales compensation design decisions. Because prominence is essentially a function of account control by the sales rep, anything that tends to alter the level of control also alters prominence. Key Indicators of Prominence There are a number of factors that are good indicators of prominence. The following list of prominence indicators is not all inclusive. There may be other factors you need to consider in assessing prominence for your sales organization (e.g., whether the role is field-based versus inside sales). However, this list is a good start to illustrate the factors that will be meaningful in efforts to measure prominence.
High-, medium-, and low-prominence sales jobs are easy to recognize. For example, the classic door-to-door sales person who seeks to sell an unadvertised and unknown product is prominent in the success of the business. This sales rep must frequently overcome the extreme reluctance of a prospective customer and the job usually requires a substantial tolerance for negative responses. The sales rep's challenge is to make the customer receptive to the form and medium of the contact, the product or service category, and the specific brand. As a way to frame a consistent and logical approach to assessing prominence, click here to see a sample prominence analysis that considers all of the aforementioned prominence indicators. In this example, we compare the relative prominence level of three common sales roles:
As profiled in this sample prominence analysis, the Account Executive role is clearly a high-prominence sales job. The Account Manager role is medium-prominence and the Channel Manager role is relatively low-prominence. Note that this is an assessment of the role’s prominence as it was intended to operate, not of an individual incumbent in the role. As you can see from this example, the Harvey Ball assignment on a number of these factors may be open to debate. However, if applied consistently, this tool provides a helpful framework with which to logically assess the relative prominence of an organization’s roles. Following this analysis are several implications for the design of appropriate sales compensation plans. While prominence is not something that's easily quantified, a consistent, logical approach to measuring prominence as shown here will enhance the understanding of an organization's various sales roles and, on that basis, result in a more consistent application sales compensation design principles. SummaryThe prominence of a sales job in the marketing mix should be understood as a dynamic concept. Prominence varies as the point of customer contact, the product mix, the sales message, the sales role, and the type of customer vary. Because there is usually some change to all or some of these factors in a given business, the prominence of a given sales role will also change over time. As such, it's important to regularly assess the prominence of an organization's sales roles. Specifically, any time a new sales role is created, the sales coverage model is altered, the fundamental product/service mix is changed, or a new sales compensation plan is designed, the prominence of the organization's sales roles should be evaluated. |
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Opportunities to Invest in Your Learning and Development!
Enroll in the WorldatWork course that Mark teaches: Sales Compensation for Complex Selling Models, November 6, 2006 in Chicago. (Get details...) |
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Mark Davis is a contributing author to The
Sales Compensation Handbook – Second
Edition. Order this seminal text on
Amazon.com.
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| by Theodore Roosevelt |
"Character is far more important than intellect in making a man successful."
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