Are you a Sales Compensation Expert?

Which of the following elements impacts Sales Compensation?

Quota Setting

Territory Alignment

Sales Structure

All of the Above

What is the Role of HR in Sales Force Effectiveness (SFE)?

A. To intervene and save strained customer relationships

B. Improve their own internal and external selling skills

C. Design and manage performance for the sales team

D. Identify new customer segments for the salesforce to be more effective

Sales teams get organised into internal groups to ensure that the right sellers target the right customers. What are the internal groups unlikely to be organised on the basis of?

Geography served

Size of portfolio of products/services sold

Knowledge of industry

Salary received

Which of the following is NOT a model to organize sales teams along the customer purchase journey?

The Assembly Line

The Hub and Spoke

The Pod

The Island

John visits around 20 clients per day in their offices and carries samples to show customers the features. If servicing is needed, he needs to get support from the home office. Select what type of salesforce John is likely to belong to.

Customer sales force

Inside Sales Force

Hybrid Sales Force

Outside or field sales force

What is the main risk(s) associated with quota target setting?

Too many/ too few sales people reaching quota

Misalignment with business objectives

Increased Compensation Costs

All of the Above

What should be the threshold level and incentive quantum for a new growth focused business in an uncertain business environment?

High threshold, and offer relatively less incentives

Low threshold and offer relatively higher incentives

Equal threshold for every person in the sales team

Keep threshold performance only for Sales managers

A fair and effective sales compensation plan should include a strong pay for performance relationship. Which of the following is not a criteria for performance metric:

Quantifiable by the company and understood by the salesperson

Directly linked to the sales strategy and be financial in nature (or a proxy)

Account for effort rather than output

Be reasonably within the control of the salesperson

Which of the following are NOT elements of Sales Compensation Design Framework?

Increment system, Performance Distribution Guidelines, Stocks & Options

Goal Crediting, Payout Timing, Administration

Mechanics, weights and upside opportunity

Pay mix, Target Pay levels, Eligibility

What is the most important design principle for a Sales Compensation Plan?

Accentuate the relationship between performance and pay

Incentivise behaviours that lead to the execution of business objectives

Design plans that are specific to sales roles and have meaningful targets and upsides

All of the above

Are you a Sales Compensation Expert?

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