Situation

A business unit of the world’s largest food product company, offering high-end coffee machines and coffees, with more than 8,000 employees spread across 60 countries, was looking to support an aggressive growth strategy. The company sought to make significant improvements in marketing and sales effectiveness, including an overhaul of its sales compensation management (SCM) program.

Challenges

There was little consistency or predictability from headquarters in terms of addressing results in 30 different countries around the world. In the client’s words, their SCM program needed to “come out of the dark ages.” The first phase of a global overhaul targeted 600 US-based coffee boutique managers and coffee specialists. The company’s growth rate was 40% in the pilot market and projected to reach 100% in other countries, so automation and accuracy were crucial.

The existing program made incentive payments to participants only once a year and, as a result, management felt constrained by their lack of agility in adapting the program to leverage new market realities. Employee retention was an ongoing challenge and management was looking for innovative ways to lengthen the average tenure of coffee specialists by engaging them to track their own performance and reinforce behaviors that increase sales and compensation.

Solution

Optymyze helped expedite the execution of their sales strategy by motivating employees with a clear compensation plan and engaging gamification strategy, and by providing management with an information rich and highly automated process that requires far fewer changes and is easily traceable for every participant.

Incentive payment periods were increased from annual to quarterly with KPI data reported monthly using feeds that show each participant’s progress toward achieving quarterly goals. Performance is displayed on dashboards with participants appearing much like characters in a video game and users can see their rank relative to their teammates. Role based access ensures that personal information remains personal.

Using a built in “What If” calculator, participants can project how changes in their sales performance will impact their earnings. This straightforward yet engaging feature lets them visualize KPI concepts graphically. Performance data updates continuously so participants see changes in real time.

Clear dashboards and powerful analytics aid executives’ planning and decision making, and also give boutique managers insight into their store’s selling process to help them assess which coffee specialists need coaching to maximize their revenue generation.

Access to all of this information and more is available on desktops and through mobile devices like smart phones and tablets using any browser, enabling the entire organization to be agile and adapt the sales process to take advantage of emerging opportunities.

Optymyze delivered a model that provides a path toward global standardization, enabling a unified plan structure across all markets with flexibility to support multiple languages and make local adjustments

Outcomes

Together, Optymyze and the client took a holistic approach focused on people, processes, and systems to achieve the desired business outcomes, generate greater revenue, and become a more agile organization. The results are powerful.

Greater adaptability in a competitive environment:

  • utilizing the ability to modify the strategy during the year to take advantage of new opportunities

Higher motivation among employees:

  • driving and rewarding the right behaviors
  • using gamification to connect coffee specialists to the KPIs that result in higher income
  • enabling managers to take advantage of new market opportunities
  • increasing employee retention through more immediate gratification

Enable the organization to produce the desired results:

  • keeping coffee specialists focused on customers instead of trying to understand their pay
  • substantially reducing the administrative burden of manual changes

More significant insights:

  • establishing an integrated platform that can be applied across the global organization facilitating knowledge transfer

Reduced corporate risk:

  • improving compliance
  • simplifying the auditability of the entire sales compensation management program
  • reducing employee turnover

OPTYMYZE DELIVERS RESULTS

  • Increased compensation agility in a competitive environment
  • Increased motivation and retention among the sales force
  • Sharper performance insights across the global organization
  • Eliminated administrative burden of manual changes
  • Reduced business compliance risk

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With greater visibility into performance, management can be more agile in their use of incentives to motivate the sales force to sell more, and ultimately achieve the aggressive 40% annual growth objective.

 

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