Gartner Research

Proactive Strategies to Manage the Cost of Sales While Maintaining Sales Effectiveness

Published: 21 June 2019

ID: G00405603

Analyst(s): Dave Egloff

Summary

Chief sales officers must balance revenue generation with cost-effectiveness. A poor balance puts sales growth at risk or drives up the cost of sales. CSOs taking a holistic and proactive approach will better manage expenses and ensure sales effectiveness and engagement are not compromised.

Table Of Contents

Analysis

  • Focus the Sales Coverage Model by Limiting Complex Crediting Rules and Balancing Costs to Serve With Sales Growth Potential
    • Limit the Number of Sales Credits per Transaction
    • Decrease the Sales Coverage Across High-Cost-to-Serve Relationships
  • Reduce Commission Expense by Linking Pay to Performance and Improving Sales Compensation Operations
    • Automate the Commission Administration Process
    • Require a Minimum Performance Level to Earn Commissions
    • Improve Sales Goal-Setting Accuracy
  • Decrease Sales Technology and Operations Expenses by Eliminating Low-Usage Platforms and Lessening Complex Requirements
    • Audit Technology Usage and Retire Low-Value/Low-Usage Tools
    • Lessen Complex Project and Reporting Requirements to Ease Administrative Requirements

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