Camela Thompson, from Calibermind, and Ryan Milligan, from QuotaPath, share their top 3 practices for getting your team the recognition they deserve - refining your comp plan design, mastering tech stack Tetris, and using data storytelling to drive efficiency.
To become a compensation expert, you need to align your goals starting with what the board cares about all the way down to what the individual contributor cares about. Get started with these 2 steps.
Step 1: Understand how your reps are attaining quota today
Take a step back and look at your pipeline. What close rate is needed, based on the pipeline coming through the door, for your reps to be successful. Is your comp plan doable based on this data? A major red flag in comp planning is when you set an unrealistic quota to on-target ratio.
“It’s as much about psychologically keeping people motivated as it is hitting goals provided by the board - Camela”
To foster the right behaviors from your team, your comp plan needs to be easy to navigate. Reps do well when they can play the game and see a path to success. Ideally, 50-60% of your reps should be at 80%+ attainment. Well compensated reps are good for business.
Step 2: Set your north star metrics
“If you can’t explain your comp plan to your grandma, you shouldn't give it to your team.” - Ryan
It’s more important than ever to focus on gross revenue retention, so build your comp plans to reflect this. Try out SPIFFs for early or multi-year contract renewals. Reps can focus on hitting your GRR goals and, at the same time, get ahead of potentially unpredictable years by securing ARR in advance.
Camela and Ryan have built more than one perfect tech stack in their day (psst, check out the webinar recording to see real examples). Here’s what they say are the main problems that your stack needs to address:
Audit your tools to make sure that you’re using features effectively. If you find overlapping features in multiple platforms, it’s an opportunity to cut costs, save money, and eliminate complexity for your end users.
In board meetings, we tend to only focus on a baseline understanding of the business. Instead, don’t just say that new ARR business is down 33% QoQ, explain what metrics are driving this problem and why. When your CEO, board, or VP of sales requests data, ask them what problem they’re trying to solve and how this data is going to drive action.
“Data does not change minds. Stories do.” - Camela Thompson
Build a story with your data. When people care about something, how they feel outweighs the data in front of them. So get familiar with your audience and what they want to hear. Report only on what’s necessary with a focus on core metrics. Effectively storytelling shows your leadership team that RevOps is the real MVP.
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