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Publications
Publications
  • July 9, 2019
  • Article
  • Harvard Business Review (website)

Setting Better Sales Goals with Analytics

By: Doug J. Chung, Isabel Huber, Vinay Murthy, Varun Sunku and Marije Weber
  • Format:Electronic
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Abstract

Sales compensation is a critical lever in motivating a salesforce and driving growth in the business-to-business sector: Studies show that revising compensation in line with market trends can have a 50% greater impact on sales than advertisements have, for instance. A vital part of getting compensation right is setting the proper sales targets. Poorly set targets often misfire, failing to deliver the expected benefits and demoralizing the sales force in the process. We see businesses in many sectors struggling to set ambitious but fair targets that will motivate salespeople to deliver organic growth. A few companies are finding solutions: They are using advanced analytics to identify the true drivers of business outcomes and are applying big data and machine learning to understand customer demand at an unprecedented level of accuracy and granularity. Armed with more reliable projections, they can establish more meaningful targets.

Keywords

Analytics; Salesforce Management; Compensation and Benefits; Motivation and Incentives; Goals and Objectives

Citation

Chung, Doug J., Isabel Huber, Vinay Murthy, Varun Sunku, and Marije Weber. "Setting Better Sales Goals with Analytics." Harvard Business Review (website) (July 9, 2019).
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About The Author

Doug J. Chung

Marketing
→More Publications

More from the Authors

    • March 2022
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    BTS & ARMY

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    The Comprehensive Effects of Sales Force Management: A Dynamic Structural Analysis of Selection, Compensation, and Training

    By: Doug J. Chung, Byungyeon Kim and Byoung G. Park
    • 2021
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    Time Dependence and Preference: Implications for Compensation Structure and Shift Scheduling

    By: Doug J. Chung, Byungyeon Kim and Byoung G. Park
More from the Authors
  • BTS & ARMY By: Doug J. Chung and Kay R. Koo
  • The Comprehensive Effects of Sales Force Management: A Dynamic Structural Analysis of Selection, Compensation, and Training By: Doug J. Chung, Byungyeon Kim and Byoung G. Park
  • Time Dependence and Preference: Implications for Compensation Structure and Shift Scheduling By: Doug J. Chung, Byungyeon Kim and Byoung G. Park
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