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Agile selling principals for sales and channel incentives

Traditional sales and channel incentive programs are on the verge of their breaking point.

Overview

  • Revenue achievement is down for the first time in 3 years to 86%.
  • Sales representatives spend only 1/3 of their time selling.
  • Sales targets are up for 82% of CSOs but 14% have confidence they will hit their numbers
  • Only 1/3 of companies actually track and analyze sales spend ROI.
The financial impact of these traditional programs is significant

  • Accenture estimates that as much as 10 percent of the $135 billion the industry spent on sales and channel incentives last year generated minimal or no return on investment
  • And this problem is projected to get worse due to factors such as the increasing dependency of indirect channels, contributing to a more complex selling model.
  • Accenture estimates that in 2016, the industry is expected to spend an estimated $154 billion on sales and channel incentives.
  • Revenue achievement is down for the first time in 3 years to 86%.

  • Sales representatives spend only 1/3 of their time selling.

  • Sales targets are up for 82% of CSOs but 14% have confidence they will hit their numbers.

  • Only 1/3 of companies actually track and analyze sales spend ROI.

The financial impact of these traditional programs is significant.

  • Accenture estimates that as much as 10 percent of the $135 billion the industry spent on sales and channel incentives last year generated minimal or no return on investment

  • And this problem is projected to get worse due to factors such as the increasing dependency of indirect channels, contributing to a more complex selling model.

  • Accenture estimates that in 2016, the industry is expected to spend an estimated $154 billion on sales and channel incentives.

It is time for businesses to take a fresh look at their sales and channel incentive programs to generate higher financial returns.

View our infographic and visit www.accenture.com/sci to learn how we can help you improve incentive spend ROI by 10 percent or more – typically tens of millions of dollars, boost sales by 3-5 percent and reduce related operational costs by 40-50 percent. And we can help you achieve these benefits with little risk and same-year returns.

Background

Accenture’s research and experience shows that an agile selling approach can be a primary source of competitive differentiation and sustainable growth by producing significant improvements in sales force performance and bottom-line savings.

Yet, most companies have not adopted the agile selling principles that are now required. In some cases, this is due to CSOs’ reluctance to let go of the traditional selling approaches they have developed over the years; in others, because CSOs simply don’t know where to invest.

THE APPROACH

To drive sales growth and return to profitability, Accenture recommends radical changes to adopt Agile Sales.

Agile Selling is about

  • S – Spend Optimization
    Strategically align working sales spend—the costs CSOs control and influence—with an intense focus on ROI to power profitable growth.

  • P – Price & Profit Optimization
    Invest in price strategy adoption and deal-level governance, monitoring outcomes to boost profit.

  • E – Execution & Operations Excellence
    Architect the selling experience to serve the Nonstop customer, embracing Digital and Cloud as catalysts for change, and evolving operations to be the “insight engine” for sales.

  • E – Enablement of Sales Talent
    Apply science to uncover the DNA of high-performing sellers, apply those insights to the sales coverage model, roles, and enablement, and move the “frozen middle”.

  • D – Digital Selling
    Crush the silos that slow sales, embrace the evolving role of retail and channel partners, and re-orient front office around Nonstop Customer.

To learn more, read about the Five Imperatives to Powering Profitable Sales Growth.

Visit us at accenture.com/sales-and-channel-incentive-services to learn how we can help you improve incentive spend ROI by 10 percent or more – typically tens of millions of dollars, boost sales by 3-5 percent and reduce related operational costs by 40-50 percent, with little risk and same-year returns.


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