Updating the sales compensation plan is a proactive process that ensures the relevancy, and motivation, and is aligned with your business objectives. You need to approach the plan with careful analysis, stakeholder input, and consideration of market dynamics in the following situations:
Annually or Regularly: Review and update your sales compensation plan on an annual basis or at regular intervals to align the plan with changing business objectives, market conditions, and sales strategies.
Changes in Business Strategy: During significant changes in business strategy, such as entering new markets, launching new products, or shifting focus, evaluate and update your sales compensation plan accordingly.
Market Shifts: If there are substantial shifts in customer preferences, competitive landscape, or economic conditions that impact sales dynamics, consider updating your compensation plan to address these changes.
Sales Team Feedback: Actively seek feedback from your sales team regarding the effectiveness of the compensation plan. They provide valuable insights into what works well and what could be improved.