Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives

Frank V. Cespedes

Case | HBS Case Collection | November 1986 (Revised June 1987)

Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives

Abstract

Focuses on the compensation plan for Fieldcrest sales representatives. Management is reviewing the structure of the plan and must decide how to establish compensation goals and guidelines for the following year so that sales efforts are allocated among products and/or accounts in the best manner. Provides information about the industry, the competitive environment, recent market developments, and the details of the compensation plan as well as comments by managers and salespeople.

Keywords: Markets; Competitive Strategy; Compensation and Benefits;

Format: Print

20 pages

Educators Purchase

Citation:

Cespedes, Frank V. "Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives." Harvard Business School Case 587-097, November 1986. (Revised June 1987.)

Common advice in sales is to provide insights to customers during sales calls. But this advice generally stays at the level of “tell people something they don’t already know” and results in sales conversations littered with many irrelevant factoids. This article provides examples of how salespeople develop and deliver resonant insights in customer conversations and why the framing of insights depends upon to whom they are talking and when in the sales cycle.

Most research and training in sales focus on acquiring new customers. But winning back previous customers is increasingly important: mergers, choice in supply chains, and uncertainty about trade wars mean that B2B customers are constantly re-evaluating relationships with suppliers and making changes. Meanwhile, large buyers account, on average, for over 25% of revenues at publicly traded firms, up from 10% in the 1980s. This article discusses how and why the process for reacquiring lost customers requires a different approach than acquiring new ones and illustrates the process and its implications via a case example.

Fred Shilmover and Sam Clemens prepared for their fourth quarter board meeting. They were excited to have scaled their software startup, InsightSquared, to $2 million in revenue and secured an $8 million round of venture capital. However, they disagreed on the path ahead, specifically on the sales and marketing plan. Shilmover preferred a sales-centric approach to growth while Clemens preferred a marketing-centric one. Which strategy was optimal for their venture’s next phase of growth?

Faculty & Research

Fieldcrest Division of Fieldcrest Mills, Inc.: Compensation System for Field Sales Representatives

Abstract

Citation:

About the Author

More from the Author