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Maslow's pyramid of needs is an essential tool for understanding people's motivations and developing strategies. We've applied it to a sales team!
All sales organizations ask themselves the same question: How can we motivate sales reps to achieve their objectives?
There are many different answers to be found in books, blogs, podcasts, webinars and so on. But few are based on the most important thing of all: people!
And who better to talk about human motivation than Abraham Maslow. Indeed, through his extensive work in psychology in the 1940s and 1950s, he created the famous theory (known to all): Maslow's pyramid of needs.
In concrete terms, this theory describes the hierarchy of human needs and classifies them in a pyramid into five levels, from basic needs to higher, more complex needs, where each level must be satisfied before moving on to the next.
Once one level of need is satisfied, the person is motivated to reach the next level! In other words, it's an essential tool for understanding people's motivations and developing strategies to release their potential and improve their productivity.
So why not apply it to a sales rep organization to help them reach their full potential?
That's exactly what the experts at Qobra have done, and they've explained it to you in this guide!
The first basis of Maslow's pyramid of needs is physiological needs, i.e. needs that are essential for human survival, such as food, water, oxygen and sleep.
So what are the primary needs of a sales reps team in order to survive?
In our view, there are 4 key areas: onboarding, the equipment needed for sales activities, training and sales reps.
Onboarding is an essential stage in building a high-performance sales rep team, and for good reason: it's the starting point for each member of the team!
The aim of onboarding is to provide sales reps with the knowledge, skills and tools they need to succeed in their role and rapidly contribute to the company's sales objectives.
"In addition to onboarding, you should give priority to workshops and training on the product and/or service being sold, as well as on the best sales techniques adapted to your sector and activity."
Jean Cumunel, SDR Director at Additi - Groupe Ouest France
Successful onboarding means:
In view of the above benefits, it is essential to treat onboarding as a strategic investment. Here are 8 methods and best practices for successful onboarding:
By following these methods and best practices, you can create a solid onboarding process that prepares new sales reps to succeed in their role while fostering their commitment and integration into the company.
92% of companies say that CRM has played an important role in achieving their revenue targets. And the proof is in the pudding: CRM systems can boost sales productivity by up to 34%!
Sales reps need the right equipment and tools to help them achieve their objectives.
Firstly, you need to draw up a list of their tasks and missions, so that you can then match them with the equipment and tools they need to carry them out.
So here's a non-exhaustive list of the main tasks and missions of sales reps and the best tools to support them:
Competitive intelligence:
Prospecting:
Qualifying prospects:
Building relationships:
Presentation and demonstration of the product and/or service:
Handling objections:
Negotiations:
Sales follow-up:
Sales cycle management:
Data collection:
Reporting:
As mentioned above, this list is not exhaustive, and needs may vary depending on the specific characteristics of the company and the sector. It's important that sales reps use tools that are tailored to their needs to maximize their efficiency in every task!
Training is essential for the sales rep team and the company to progress. Regular training is the most important thing!
In fact, training goes well beyond onboarding, and there are 4 types of training:
"At Additi, we encourage all our sales reps to subscribe to newsletters, read white papers, watch webinars and listen to podcasts. We even provide them with a list of the best in the field."
Jean Cumunel, SDR Director at Additi - Groupe Ouest France
"At Modjo, we realized that we were losing around 50% of our post-demo opportunities. So we looked at the statistics of the top performer, and analyzed what he was doing during his demos so that other staff could be inspired by his best practice."
Paul Berloty, CEO of Modjo
However, before embarking on a training programme, it is essential to:
According to a Gallup study, only 40% of employees claim to know their company's values and objectives. This makes it difficult for sales reps to achieve their objectives when they don't even know what they are...
How can this problem be solved?
Here's how it works:
"When it comes to setting objectives, it's essential to set them according to each person's position in the sales cycle. You need to be sure that these objectives make sense for the whole team, i.e. that they are consistent between the BDR/SDR and the Account Executive."
Doreen Pernel, VP Sales at Scaleway
It is vital to set virtuous objectives between the different roles in the sales rep team so that they are jointly motivated. After all, they must all be pulling in the same direction, i.e. increasing the number of new customers and the company's sales.
To be motivating and effective, and ultimately to be achieved, objectives must above all be adapted to their beneficiaries, and in particular to their role and missions!
The performance of sales reps responsible for prospecting and qualification (SDR) should not be evaluated on the same criteria as those responsible for closing (Account Executive) or those responsible for additional and/or complementary sales (CSM). They all have specific qualitative and quantitative objectives!
Defining the objectives of a sales reps team stems first and foremost from the company's objectives. These need to be translated into clear, easily measurable and achievable sub-objectives.
To do this, there is a tried and tested method: the SMART method. Thus, the objectives must be:
"When it comes to selecting KPIs to determine commissions, you really need to focus on simplicity and clarity. Otherwise, employees don't know what to focus on to achieve their objectives."
Aude Cadiot, Revenue Operations Lead at Spendesk.
💡 Good practice
In order to establish a legal framework and ensure that the objectives are clear for both employees and the company, it is essential to draw up a letter of objectives and include it in the employment contract.
The second pillar of Maslow's pyramid of needs is security, i.e. the needs that will enable us to live in peace, such as family, health, employment and property.
How could we translate these needs into sales reps?
In our view, security needs a competitive fixed salary and a good commission plan, with visibility and predictability on these elements!
The fixed salary is the most secure element for a member of a sales reps team. It is a monthly payment that will enable them to cover their basic needs: food, housing, health, etc.
The size of the fixed salary depends mainly on the employee's role in the sales team and the company's strategic and sales reps objectives. However, there are a few common rules:
"The split between fixed salary and commissions should be reviewed in line with the maturity of the company and its products and/or services."
Vladimir Ionesco, Sales Reps Director at Doctolib
It is important to note that these distribution rules are not universal, and it is essential to adapt them according to:
The amount of the fixed salary depends not only on the role, but also on the level of responsibility, the number of years' experience, the sector of activity and the size of the company.
By way of example, here are the practices in terms of median fixed remuneration collected by Qobra during its study on commissions (+1800 respondents):
🛠 Tool
Figures has developed a cutting-edge benchmarking tool that collects data from thousands of companies across Europe. This enables companies to find out exactly how much they charge for each role and level of responsibility, compared with other companies in the same sector and of the same size.
"Whether you're CEO or Sales Rep, the sales compensation plan is probably the most powerful tool you have to drive sales strategy."
Mark Roberge, VP Sales at Hubspot
The commissions policy is a powerful motivator for Sales, but it is not its only benefit.
"There is no magic formula for building a good commission plan. On the contrary, there are some key principles to bear in mind, and the first is alignment with the company's strategy."
Aude Cadiot, Revenue Operations Lead at Spendesk
5 essential rules to bear in mind when drawing up a commission pay plan:
To ensure the effectiveness of a commissions policy, it is crucial that it is tailored to the beneficiaries, and in particular to their specific objectives. In reality, each sales team comprises several sub-teams, each pursuing distinct qualitative and quantitative goals. It naturally follows that the structure of their remuneration differs.
Broadly speaking, here are the various roles that can be identified within a sales rep team, along with their corresponding objectives:
In order to avoid having a negative impact on the levers of attractiveness, motivation and retention generated by commissions, there are a few rules to be observed when allocating them to the different jobs in a sales reps team:
It is important to note that these distribution rules are not universal, and it is essential to adapt them according to:
The amount of commissions depends not only on the role, but also on the level of responsibility, the number of years' experience, the sector of activity and the size of the company.
By way of example, here are the practices in terms of median commission remuneration collected by Qobra during its study on commissions (+1800 respondents):
The final stage, which should not be underestimated, concerns communication. In order to reap the benefits of the work done upstream, it is essential to communicate clearly and transparently. Without this, commissions are likely to have little or no impact on attracting, motivating and retaining sales reps.
Here are a few basic principles to ensure effective communication on commissions:
To increase its impact and ensure that the new commissions plan is fully understood by all, it is essential to diversify communication media and channels. This is the best way to reach all sales reps, taking into account their preferences and the method of communication best suited to them.
By way of illustration, here are some ideas for communication media:
Next, here are some examples of communication channels for distributing these materials:
Too many companies complete all the previous steps but manage the topic of commissions with ill-suited tools such as Excel or Google Sheet.
"Excel involves formulas that are sometimes broken, calculations that are sometimes a little opaque because Sales didn't necessarily understand them and, above all, ergonomics that aren't as obvious as Qobra."
Clément Bouillaud, Director of Operations at Partoo
According to a study on commissions in France, carried out by Qobra and Modjo, 68% of employees who use Excel or Google Sheets to manage their commissions are not satisfied with it. On the other hand, 85% of employees who use software dedicated to calculating and managing commissions are satisfied!
The disadvantages of using a solution like Excel or Google Sheets are numerous: tedious manual input, lack of clarity, no link with the CRM and payroll system, poor visibility, lack of sales reps, and so on.
The end result is a lack of commitment and motivation within teams, a loss of time for employees responsible for commissions, a high turnover rate and reduced attractiveness. In other words, these effects run counter to the benefits that commissions are supposed to bring.
How can this situation be remedied?
Adopt a solution such as Qobra, which offers:
In this way, employees are better encouraged to achieve their objectives and contribute to the company's sales reps.
As evidence of this, according to a study carried out by Qobra and Modjo on commission pay in France, 61.9% of employees using specific software to calculate and manage commissions surpassed their targets in 2022, compared with only 30.1% of those using Excel or Google Sheets.
"Since we've had Qobra, we've seen a 15-20% improvement in target achievement."
Tomas Hons, GTM Strategy & Operations Manager at Make
Having explored the first two bases of Maslow's pyramid - physiological needs and security needs - and associated them with the needs of a sales rep, it's time to discover the needs of belonging!
In practical terms, they correspond to membership of a social group. In other words, family, friends, social relationships, etc. At the level of a sales rep, this third base of the pyramid corresponds to the corporate culture and the team culture!
Company culture is a key element in meeting a sales rep's need to belong, and as proof, according to Glassdoor's Mission and Culture 2019 survey, more than half of employees value it more than salary.
A strong, positive corporate culture can deliver a multitude of benefits that contribute to motivation and business performance:
Although the benefits of a good corporate culture are promising for the sales rep's growth, finding a culture that matches the company's values and vision is a complex exercise.
Nevertheless, to achieve this, here is a non-exhaustive list of tips and advice followed by the biggest companies:
By adopting these recommendations, the company has all the conditions in place to gradually forge a robust sales rep culture, aligned with the company's values and capable of boosting individual and collective performance.
According to Maslow's pyramid, the need for esteem and the need for fulfillment are distinct and constitute the last two levels of the pyramid.
Broadly speaking, these needs relate to recognition, appreciation, success and so on. That's why bringing these two categories of needs together makes sense at sales team level, and in our view, can be represented by SPIFF sales reps!
These days, the need for esteem and the need for fulfillment are generally linked to financial success, especially for the sales rep population. However, this is not the only criterion for success in satisfying these needs. If sales reps are to surpass themselves in achieving their objectives, they need to be recognized by their managers, their peers and all their colleagues.
Among the existing possibilities of combiningcombining financial (or non-financial) rewards and recognition, only sales reps seem to stand out!
SPIFF sales reps are one of the most powerful motivators for sales teams. They have multiple objectives and benefits: improving sales performance, stimulating sales, reaching new customers or increasing turnover.
And it works: according to a study carried out by ACTIONCO, 81.3% of managers report a real increase in sales when their company organizes SPIFF sales reps.
How do you go about organizing a motivating sales rep SPIFF?
Here's how it works:
"Firstly, you shouldn't do SPIFFs for the sake of doing SPIFFs, you should start with an objective, a problem and then launch the SPIFF from that."
Paul Barret, Sales Ops Lead at Glady
"By setting up a questionnaire to collect feedback and ideas from sales reps at the end of each SPIFF, there can be some really good ideas."
Paul Barret, Sales Ops Lead at Glady
"Like most companies, we have a budget that is allocated each year for sales reps. We then divide this budget by into teams, and we divide it equally according to the number of SPIFFs."
Paul Barret, Sales Ops Lead at Glady
📖 To find out more...
Discover the 10 steps to organising a motivating sales reps!
The benefits of sales reps are numerous, as long as the company follows a clear and strict process for implementing them. However, for the people in charge of organizing them (Head of Sales, Sales Manager, Sales Ops, etc.), the steps involved in implementing a SPIFF are many, complex and time-consuming, from the initial thought process through to the final reporting. As a result, despite their determination and strong commitment, SPIFF sales reps often end in failure...
To address these issues and make sales reps child's play, Qobra has developed a feature within its solution for organizing sales reps quickly and easily. Managers and/or Sales Operations only need to decide among themselves on the rules, participants, objectives to be achieved and rewards!
Participants are then alerted (by email, notifications, Slack) in real time to the progress of the results and the ranking of the best contributors. At the end of each SPIFF, the administrators receive a full analysis of the results.
Qobra provides a real framework for sales reps, and takes charge of running and maintaining them!
As Maslow's pyramid explains and demonstrates, whether it's a human being or a sales rep, their needs must be met according to their degree of importance, and it's essential to start with the most vital, most important needs before focusing on secondary needs.
If the steps outlined in this guide are not followed, it will be impossible for a sales reps team to achieve the objectives assigned to them!
As the psychologist Maslow explains, each need must be satisfied before the next can be met. It is also important to continue to satisfy each need throughout the life of a sales rep, otherwise the pyramid collapses.
Among all the needs discussed, commissions and sales reps were addressed, two areas in which Qobra supports numerous companies around the world, including Sodexo, Natixis, Celonis and Doctolib.
Thanks to Qobra, all these companies no longer have to worry about perfectly meeting the needs of their sales reps - Qobra takes care of that for them!
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