TLDR:
Identify meaningful metrics in your ABM programs and apply them to the SDR compensation structure. To make sure ABM practices are followed, offer motivation, like a bonus, and wrap that around ABM behaviors. Engagement with decision-makers could help determine compensation. Payment to SDRs can be prioritized according to whether they engage the right people. Include sales end-to-end to prevent gut feeling actions.
Traditionally, a sales develop rep’s (SDR) compensation is figured by the meetings they schedule, regardless of which account they’re scheduling with.
Not so with ABM. In ABM, an SDR’s sales commission would be determined by the number of meetings they schedule with the contact they need to reach out to.
But how can marketers convince sales to make the switch—to tie their current pay structure to one that revolves around ABM?
Easy—marketers can incentivize it.
But first, marketers would need to identify a range of metrics that would be helpful for sales to focus on. Metrics ranging from pipeline velocity to buying committee penetration. and to account-based engagement, are just a sampling of the metrics sales needs to be successful here.
Sales never wants to approach accounts the same way twice.
If marketers reinforce the behavior they wish to see in sales by rewarding it, making the SDR commission switch is easy. For example, commission could be determined by the number of meetings scheduled with decision-makers in the target account’s company.
Ultimately, it promotes better marketing and sales alignment because marketing and sales need each other to produce a better outcome for the customer.
At Terminus, their salespeople work from a compact list of accounts. It’s small so as to limit the range of irrelevant behaviors. This is only possible by increasing the amount of compensation offered to sales reps with each account. Terminus also reinforces strategic thinking by halving the opportunity target numbers. They then measure the touches sales makes with the account to ensure they’re engaging with the right people.
There are six easy ways to help marketers get their sales team on-board with ABM:
- Offer incentives
- Elevate the importance of the deal cycle by offering a bonus
- Have sales leadership work with each SDR and account executive to focus personalization efforts
- Offer a kicker to SDRs who engage the whole buying committee
- Offer bonus only if directors are engaged, or when lower-level contacts yield higher levels
- Work with SDRs to form an understanding that they’ll only get a 100% commission from agreed upon accounts
Every organization is different, so what works for you. Trial and error may be required in this case.
Original article from Terminus on 10 July 2019.
