Sales Compensation Revamp to Reverse Revenue Stagnation
External comp benchmarks to drive net-new growth at a specialty chemicals distributor
Client Challenge:
The client - a mid-sized specialty chemicals distributor - recognized that their compensation model overly rewarded account maintenance at the expense of new business development. Sales reps were incentivized to continue serving legacy customers with repeat orders rather than pursuing net-new accounts or untapped revenue streams. Leadership sought external benchmarks to inform a redesign that would drive proactive growth while preserving key talent.
Our Approach:
We sourced and interviewed a targeted set of former C-Suite executives, SVP and EVP level experts, and sales compensation focused HR professionals from competing firms to benchmark commission structures, ramp curves, and rep behavior. Using blinded expert calls, we built a comparative model across relevant sub-segments. We also introduced best practices from firms that had successfully revamped comp to drive rep accountability.
Result:
The client restructured their sales incentive plan, aligning comp with margin, retention, and growth KPIs. A hybrid commission model was implemented across their North American operations. The CHRO cited the calls and summary report as 'mission critical' to securing internal buy-in.