Podcast episode
Incentivizing Your Team to Dominate Q4 (Doug Landis @ Emergence Capital)
30 Minutes to President's Club30 Nov 202330 min
Description
Mark Kosglow's Course FOUR ACTIONABLE LEADERSHIP TAKEAWAYS Re-evaluate your Q4 incentives. Lots of sales reps aren’t making money now. Throw in SPIFs and kickers that squeeze the juice out of ICP deals or even a $500 referral SPIF for customers. Build your 2024 model for efficiency instead of growth. Sell your CEO, board, or finance team on healthy attainment to keep your best reps fed. They will carry you through a downturn. Consider running hot. Your top sellers will over-perform and make up for a gap in capacity you might have with a bloated team. Get everyone on the same page on healthy growth. No one wants a horrible CAC payback, a burning sales team, or a team that can’t keep their top reps. PATH TO PRESIDENT’S CLUB Growth Partner @ Emergence Capital Mentor &Advisor @ Sales Assembly Mentor & Advisor @ Forum Ventures Mentor @ GrowthX Academy RESOURCES DISCUSSED Join our weekly newsletter Things you can steal 30MPC Training: 30mpc.com/training
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I'll see you there. All right, Doug. Well, welcome back to the show. We start every leadership show with your top three actionable takeaways. Let's get your three. All right. Number one, as a sales leader, it's so important you are in the midst of Q4 right now. What I want you to do is I want you to look at your incentive structure between now and the end of the year. This is for right now. “You have to reevaluate your incentive plans.” Look, it's really hard for reps to get their number. We said less than 43% of sales teams are hitting quota. If I'm an AE right now, I'm freaking out. I'm not making any money. I got the holidays coming around. If I'm like Mark, I got six mounds to feed. So what can you do? You can use SPFs.
The second thing is we're really relying on our existing customers for pipeline in many cases. So what if you close a deal and you get that customer to make an introduction to another person that's in a similar role and you book a meeting with that person? I would give a SPF or a kicker for that. “customer referral that actually turns into a meeting this quarter” incentive kicker you can put in place to help your reps actually make some additional cash, even though they most likely may not be hitting their number. Re-evaluate your incentive plan, number one. The gift of SPF from Doug Landis. Doug, what's number two?
But either way, have you ever spent time and actually evaluated your customers and identified which ones are your tier one customers, the high value customers? These are your babies, right? Maybe it's in the marquee industry that you serve really well. You've got a lot of them. Well, the first thing you want to do is make sure you go through and tier all of your existing customers. Like who are great ones, who are not so great ones? “Because look, your customers are an extension of your network.” So tier your customers and then partner your AEs with their CSMs, with your tier ones to nurture those relationships so that you can, again, get those referrals. I'm going to go back to suggestion number one, connect it back to your incentive structure. But this is actually how you do it in the weeds because your existing customers have so much gold.
It's that, but when you're at 70%, you're like, you have no line of sight of getting to 100. You're just like, all right, well, I'm just going to keep cruising. Guess what? I'm going to check out at four o'clock. Yeah, I'm going to push some of these deals in the next quarter because then maybe I have a chance to overexceed then, right? At the end of the day, just never forget this incentive stride behavior. If you're not getting the right behavior out of your reps, the very first thing you have “your incentive structure and what are they getting paid on and what's motivating” them. So I remember there are basically two different battles that you guys are talking about fighting. The first battle is I need to fight the goal, right? So if I'm at 10 million and they put a 50 million target at me, you got to fight that goal. Otherwise, you're signing your own resignation at that point, right? That's number one.
attainment numbers and let's look at how they've been over the last four quarters. And so what should I be targeting from both of your perspectives? What did the bull market attainment and participation look like? And then what does bear market attainment and participation look “attainment is if you just add up how much every rep produced” right? And you blend all of their attainment together, right? So if you have one rep that did a thousand percent and nine other reps that did zero percent, your blended attainment
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