Challenge: A major player in local advertising media wished to optimize its sales compensation system to maximize overall financial impact, while also simplifying and unifying a set of unnecessarily complex plans.
Solution: AV&Co. analyzed historical performance of individual sales reps under existing compensation plans, and determined that reps were overly focused on new accounts rather than revenue retention. We then developed a detailed behavior-based economic model to predict changes in sales rep customer focus as a result of various compensation system alternatives. AV&Co assessed these alternative approaches using the economic model to evaluate impact, and recommended an optimal new compensation model.
Results: AV&Co. successfully collaborated with and gained buy-in from a diverse set of client constituents—executive management, finance, sales management, and sales reps. The client proceeded to implement the recommended new plan.