SHORTCUT: Next-level sales | Page 2

company targets ensures that everybody is pulling together , thereby eliminating inefficiencies and diametrical forces . Additionally , a reduction in complexity enables companies to precisely steer their sales channels individually or jointly . This reduction also introduces agility in the commission schemes , with which fast and unbureaucratic reactions to market and consumer trends can be attained .

Furthermore , OSCs schemes play an important role in building a skilled and successful salesforce by creating transparency on sales performance . This transparency allows for the introduction of positive feedback loops where top performers can be identified , appreciated , and rewarded for their performance .

Similarly , sales staff not reaching their goals can be identified and supported with training . This leads to a general increase in skill by rewarding high-performing employees and supporting the low-performing ones , while transparency enhances perceived fairness , thereby raising morale and job satisfaction .

These benefits of an OSC scheme are not only qualitative and ‘ soft ’, but also translate into financial results : According to a goetzpartners project benchmark , revenues increase by up to 5 % when employing OSCs . Similarly , ARPU increases up to 10 % while subscriber acquisition costs can be simultaneously reduced by as much as 10 %.

Optimizing your sales commission schemes

Optimization starts at the top : An OSC strategy is developed based on corporate , competitive , and sales strategies under the guiding principles of sales efficiency , sales mix , channel steering , and customer satisfaction : How do we target consumers with the lowest possible sales commissions , while selling products that generate the highest value ? How can we optimize our omnichannel approach and promote digital channels ? How can we incentivize behavior that increases customer satisfaction ? How can we be successful in close competition with other telcos ( particularly in multi-brand shops )?

After strategy formulation and goal definition , commission schemes targeting the various strategy components ( e . g ., one-time commission plus recurring bill size for enhancing customer lifetime focus ) are derived . However , successful implementation also depends on the presence of enabling factors such as suitable processes , an appropriate IT landscape and an aligned organizational setup . Additionally , a standardized and continuous process is required that monitors performance , challenges and reviews the status quo continuously . This circumvents falling back into the same ridged outdated structures . Such a transformation toward OSCs may seem like a big endeavor , but it is absolutely necessary in order to pave the way for the future of sales .

To offset growing external pressures , telcos need to revamp their sales and G2M approach and integrate commissions into the core of strategic considerations . One step is to optimize sales commissions , as most legacy systems have grown outdated , complex and inefficient . The latter is often exemplified through a misalignment between off- and online sales channels . Through transforming sales commissions , telcos strengthen internal sales efficiency , mindset and employee motivation , as well as significantly increase revenue and ARPU while decreasing subscriber acquisition costs . To achieve this , an OSC strategy is developed based on OSC principles and commission schemes . Additionally , enabling factors such as processes , IT landscape and organizational setup are to be adapted as well .

THE AUTHORS

What is the sales and distribution approach ?

How are sales and customer service incentivized ?

SALES EFFICIENCY : Win targeted subscribers with lowest possible sales commissions

SALES MIX : Push sales of offerings with highest strategic value

CHANNEL STEERING : Optimize omnichannel utilization and increase steering efficiency

CUSTOMER SATISFACTION : Incentivize behavior that is beneficial for customer satisfaction

DR . NIMA AHMADI Principal , goetzpartners Source : goetzpartners © goetzpartners , 2021