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Salespeople in Asia clinch greater proportion of pay from net sales

India Infoline News Service | Mumbai |

A US salesperson in charge of wholesaling relationships will derive 40% of their pay from gross sales commission and 17% from net sales

Cerulli's Global Marketing and Sales Organizations 2013: An Industry Road Map report finds managers from the three regions, with assets under management totaling US$24 trillion as at December 2012, use CRM systems to assess a sales team's success.

On average, a US salesperson in charge of wholesaling relationships will derive 40% of their pay from gross sales commission and 17% from net sales. In contrast, European managers place equal importance on tracking net and gross sales for compensation, whereas in Asia, 60% of the managers track net sales for compensation. Meetings with specific firms and key influencers may not rank highly for compensation purposes, but they are monitored to determine the quality of a relationship. Managers in the United States use CRM systems to determine the number of touch points before a sale is made. In Europe, however, these measures are used selectively.

In the United Kingdom, managers will demand that their sales teams clock up more calls and face-to-face meetings as a result of the increase in independent financial advisor firms. They are aware that these calls may not equate to sales and some firms use CRM systems for motivational purposes-to track and drive product sales by tweaking compensation and bonuses.

"Measuring success is a nebulous and imprecise task because of the number of factors involved in clinching a sale. However, managers are becoming more inventive and resourceful in nailing down each department's contribution," said Yoon Ng, director of Asia research at Cerulli. "Advances in digital media make tracking easier, but at the end of the day, hit rates and email responses do not translate to business," she added.
 

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