Best Practice - Use Simulations To Forecast Sales Incentive Spend
Running a calculation in simulation mode allows you to forecast sales incentive spend, attainment levels, and reward assignment. By drawing past simulations at random, while "pretending" they happened in the future, you fulfill the claim that "the best predictor of the future is the past".
Each simulation will be different. By running multiple simulations, you can get an accurate idea of what your spend and reward assignment may look like at the end of your target period - under different scenarios.
Simulation is an incredibly useful and realistic tool in terms of estimating spend and reward assignment for different incentive models. We recommend that you make full use of this capability.
Best Practice - Legally Protect Your Sales Incentive Plans
By clearly documenting your sales incentive plan's terms and conditions (and ensuring that potential beneficiaries are aware of those rules), you can: Increase transparency Reduce confusion Reduce the chance of disputes Reduce overall legal risk and ...
Best Practice - Only Use The Complexity You Need During Design
When designing a sales incentive plan, you could use a complex approach such as: Use a score, based on calculating profit, and then applying a rule-based profit multiplier Measure a % increase for the score vs. the previous period Define 8 levels of ...
Best Practice - Don't Use Demo Workspaces For Production
Demo workspaces expire after 14 days. They are designed to let you explore the application, provide training to your employees, or run experiments. However, they include demo users and data, are so are poorly suited for production needs. To start ...
Best Practice - Designing Plans Which Are Fair
When designing a sales incentive plan, your goals typically include: Limiting total spend to a reasonable amount Maximizing the effectiveness of your spend Ensuring that top performers feel recognized Ensuring that participants are challenged to ...
Best Practice - Adjusting Commissions
Here are some recommendations when manually adjusting commissions. Adjusting commissions is a complex topic because they are different ways to adjust. We hope the following recommendations will help you. Analyze Adjustment Frequency Assuming your ...