Optimal Salesforce Sizing and Compensation Cost: A Mathematical Approach

What is it about?

Salesforce sizing affects profitably of a sales organization by affecting both revenues and costs. The salesforce size affects customers, salespeople and the overall sales organization. A salesforce that is of the right size is challenged and motivated, but not overworked, connects with customers effectively, sales compensation costs are reasonable and sales as well as profitability of the organization is strong. The organization that is more effective than others (e.g., sales growth, profit contribution, market position and customer satisfaction) has a more optimal salesforce size. There are many internal and external factors affecting salesforce sizing decisions such as strategic objectives, product maturity, competitive environment, market trends and financial goals. All these factors together determine optimal return of investment for salesforce investment.

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Photo by Artturi Jalli on Unsplash

Photo by Artturi Jalli on Unsplash