How to Be a Good Sales Compensation Analyst
A good sales compensation analyst helps a company adjust to the changing market trends. A company’s sales compensation analyst monitors market changes and adjusts a company’s variable compensation, increasing sales incentives during times of expected low sales. While companies rely on an analyst’s ability to make the necessary changes to support the sales department, sales representatives rely on an analyst’s ability to understand these trends and then provide realistic sales goals and incentives to ensure stable pay during changing trends.
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Instructions
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Evaluate market changes for all interests associated with your company: the products and services your company provides, your company’s suppliers, other companies that provide products your company uses and your company’s primary markets, companies that purchase your company’s products for their own use. Make notes when the markets shift for the benefit, or the detriment, of your company. For instance, if your company sells auto parts, you should watch the companies whose products you sell, the rising or shrinking demand for auto parts and the overall car buying market.
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Analyze how changes in these markets will affect your company. As an example, a limited supply of incoming parts will raise the price and hurt your sales, while an increase in car purchasing increases reliance on the auto-parts market and helps your sales.
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Examine and evaluate the history of your company’s sales during similar market shifts, as the actual historical company sales represents other factors, such as community influences, sales staff success rate or the success or failure of past incentive programs. Note any past sales incentive programs that were successful during similar market fluctuations; they are promising programs you can consider reimplementing to help your company adjust to future changes.
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Establish sales goals based on your assessment of market changes. Implement programs designed to boost sales, encouraging your sales force to perform well during times you predict a down market fluctuation. As an example, if you predict a poor sales month, you can implement a sales incentive program, paying bonuses to sales representatives who reach a specific sales goal.
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Adjust the variable compensation, sales commission and sales incentives to coincide with projected sales. For instance, if you predict a low sales month, increasing variable compensation can encourage sales representatives to work harder to improve personal sales numbers. If you predict an increase in the sales trends for your company’s products, you can lower the variable compensation for the month and know that the increase in sales will support your sales staff.
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References
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