Sales Incentive Schemes

Home Delivery Network, a large national parcel delivery business with a turnover in excess of £350m, required help to generate sales and profit growth. Operating in a competitive but growing market, they were experiencing a decline in their traditional parcel delivery business. This was caused by a combination of diminishing existing clients and a passive approach to sales, resulting in a lack of new business wins.

What was required?

The Sales & Marketing Director recognized the need to recruit and incentivize a more dynamic, time served and Industry proven sales team, to make an immediate impact. An aggressive target of £60m per annum was set as part of a 3 year plan, agreed with the shareholder. To achieve this objective an appropriate sales incentive scheme was required. This had to provide a self financing, incentive to maximise profitable new sales and to build on existing relationships.

The solution

We devised a scheme based on volume of new sales over a 12 month period, graduated depending on the profit margin achieved. This provided the Sales team with the opportunity to receive commission of between 1% and 3% of revenue on new accounts for the first 12 months of trading. The scheme itself, interfaced with the finance functions KPI based pricing models which included the commission payments.

The results

Year one new sales exceeded £48m though new business from existing clients was slower due to a business leadership change. The initiative and incentivisation is proven and continues to support market leading new sales generation whilst rewarding and retaining the Industry’s best Sales personnel. We also adapted the scheme for the Account management team, to reward retention and growth of existing accounts. Both schemes are still in use by the Company.

If you are looking to recruit and incentivise a dynamic and successful sales team, we can offer expert HR advice in Northampton and the surrounding area. Call us today on 01604 763494.

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