Gartner Research

Take These Immediate Actions When Forced to Reduce the Cost of Sales

Published: 19 June 2019

ID: G00428644

Analyst(s): Dave Egloff

Summary

Chief sales officers are often asked to quickly reduce expenses in response to financial pressures. Regrettably, many cost reduction tactics are also disruptive, leading to undesired issues. CSOs must take a balanced approach to reducing costs to preserve sales sustainability and effectiveness.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Prioritize Lower-Risk Cost Reduction Strategies
    • Delay Backfilling Open Head Count
    • Limit Nonessential Travel and Miscellaneous Expenses
  • Control Select Sales Compensation Expenses
    • Shift Special Commission Incentives to Sales Contests
    • Add an Exceptional Deals Clause to Compensation Terms and Conditions
  • Mitigate General Sales Force Reductions

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