In this article, we show you what the objectives of the SaaS commission are and how you can make a plan that suits your company.
Read, have fun and if you find any translation errors or have any questions, don’t forget to comment!
Sales team compensation is one of the most complex issues for SaaS. Unlike in the traditional software market, the sales job doesn’t end when a new customer signs a contract. Instead, it begins there, as retaining customers for as long as possible is essential to maximizing revenue.
In this post, we’ll explore the ideal model for creating sales compensation plans that can lead your team to adopt the right behaviors.
Although much has been written on the topic
we believe it is pertinent to have a deeper discussion and create a “manual” on how to do it.
Main objectives
When designing a sales compensation list of mauritius consumer email process, the intention is to align sales team behaviors with business objectives. Therefore, the process should begin with identifying key business objectives.
What are the key goals for a SaaS business?
The primary goals of sales-related business are usually a combination of:
increase the number of recurring revenues as much as possible;
receive as much capital up front as possible (especially when you have little cash on hand and there is not much capital available on the market);
sign long-term contracts (e.g. semi-annual instead of monthly, annual instead of semi-annual, etc.);
ensuring customer satisfaction after purchase, making them remain customers for a long time;
maximize renewal rates;
Increase revenue with each existing customer
to promote a retention rate purchasing managers will discuss their new role as business drivers above 100%, even when some customers are lost. (We often call this “negative churn,” as this concept is critical to the success of a SaaS.)
Secondary objectives
In addition to these primary objectives, there are some secondary objectives:
add as many clients (new logos) as possible;
optimize the average ticket (sometimes it is worth opting for shorter period tickets to have shorter sales cycles and expand revenue after reaching the customer);
work on a mix of specific products. Example: Promote bw lists the sale of new products in a mix with the traditional product;
keep gross margins as high as possible.