I started my morning with a 90 minute call on #customersuccess and #accountmanagement comp plans and it reminded me how tricky this topic gets.

My one piece of advice after building many plans over the years is to **keep it simple.**

There is not a one-size-fits-all formula but, here’s the method I use to get to an answer:

1. Align on company strategy - how do we win with customers this year?

2. What role does each team (AM, CSM, services, etc) play in achieving the target outcome?

3. What are the outcome metrics? (Note: these are typically lagging metrics like adoption rates, renewals, upsell, etc)

4. What are the LEADING activities we must do well to drive the outcome we want (e.g. build relationships, educate users, joint success plans, etc)?

5. Define measurements and build the tools to reliably track these the leading indicators against targets.

6. Build calculations, decide percentages, payout schedules, etc. include a blend of both leading and lagging measures (I’m skewing toward leading).

7. Monitor and adjust (yes, you can adjust a comp plan as you learn).

Sometimes we start with #6 (πŸ‘ŽπŸ»).


What else would you add to this approach?

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