How do I correlate points for activities?

February 7, 2018 Claudio Ayub

We want to move to a behavioral incentive model, using a points-based individual rewards program. My question is, how do you correlate points for activities and behaviors to actual results in sales?

You start by modeling or mapping out each partner type’s sales process on a timeline all the way from demand generation activities, through lead management, and finally opportunity management. Then you look at the transaction and value and split the transaction incentive rate (i.e. 2%) throughout the activities and behaviors that lead to that transaction.  You need to design your incentive strategy with the end in mind.

For example, if that transaction is going to generate a revenue level of $500,000 or $50,000, typically - on a rewards programs - you're going to incent it at a 2% incentive rate. So, 2% of that transaction value is what you would pay a sales rep in points or as a SPIFF. That’s where you start.

Now, go back and identify all the activities and behaviors that lead to that sale. For example, let's say that a lead came from the vendor to the partner: that's an incentive point. You can incent the sales rep for taking your MQL and converting it to an SAL or not. Then you can incent the sales rep for taking that SAL and converting it to an SQL and/or converting it to an opportunity. That's another incentive point. You can follow that with incenting activities that enrich the opportunity, such as “appointment setting.” That is to say, "Hey, this is a really good opportunity and I’m going to invite the vendor’s PAM/CAM to meet the prospect to add value to the relationship and help closed the deal.”

If you had 2% of the transaction value, you can split that 2% among those incentive points during the sales processes. What happens there is that sales reps very quickly realizes that, "Hey, if I just close the deal, I'm going make 25% of what I could make if I SQL that SAL and invite a CAM or PAM into the deal, or do a proof of concept." So that's where you start, at the end. Take that 2% and spread it along those sales activities and behaviors that lead to the transaction, and pay it only on transaction closing.

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About the Author

Claudio Ayub

Chief Strategy Officer Claudio Ayub brings over 20 years of global channel marketing experience to Perks.He has executed major go-to-market programs for a variety of vendors, including Bing, Cisco, Dell, EMC, IBM, Kaspersky, Lenovo, Microsoft, Motorola, Seagate, Symantec, and VMware among others.

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