Compensating sales professionals is challenging. There are many factors to consider, and some naturally oppose each other. The classic example of this opposition is sales volume versus customer service. You can readily see how these might conflict if sales professionals are rewarded only on volume of sales and not at all on customer satisfaction. Our assignment for this module takes a look at the unintended consequences that occur with a new product roll out. You are asked to recommend solutions to the problems.
CybrTech Inc. is a mid-sized provider of computer hardware and software that focuses on handheld solutions for service and maintenance organizations. Their maintenance business is primarily in the United States, although they have begun to license sales in several foreign countries. In the U.S., CybrTech uses an in-house sales staff that includes seven professionals in the field and three professionals at the headquarters who connect with customers via phone and website.
The pay structure for the outside sales staff includes both base salary and commission.
Base salary – $28,000 Commission – 5% of gross sales, for both hardware and software. It is typical for a sales professional to produce $800,000 annually.
The pay structure for inside sales staff is a straight salary – $48,000 per year.
All employees receive a competitive benefits package.
CybrTech’s primary product is a handheld device, the Ml. The M1 stores information about heating, ventilating and air conditioning (HVAC) systems, parts inventories, safety concerns, and other information pertinent to completing maintenance and repairs on large and complex mechanical systems. The product has been on the market for about eight years and enjoys a good reputation.
About a year ago, CybrTech launched a new product, the M2, which has many more features than the Ml. The M2 has a web-based application that allows for real-time interface with technical support, and a work order program that fully captures costs of all maintenance and repairs.
The company’s business plan for the M2 planned to replace about 15% of the existing Mis and also sell an additional 500 units to new customers in the first year. The results are not even close to expectations.
To further complicate the problem, customer feedback on the M2s in use is not good, with the primary complaint being ‘the M2 is too complicated’. The sales of the M1 have remained steady. The executive team has met to try to get to the bottom of the slow M2 sales. To prepare, they asked for input from the sales staff. Input from outside sales:
The M2 does work and provides additional features, but the customers don’t seem to think it is worth the cost to upgrade. We seldom can get time to walk them through all the features. And if a customer gives us the time, it means we only see one customer that day.
Input from inside sales:
We are really here to help customers, and to sell additional features, we cannot sell the M2 over the phone because its features are difficult to explain. We are spending most of our time trying to help those who have purchased a unit. The outside sales team is not giving these customers enough training.
Prior to the rollout, the M2 was demonstrated to focus groups comprised of current customers and potential customers. The M2 received excellent evaluations.
From a compensation perspective, what solutions can you offer?
The United States has turned into an image of flexibility around the globe and keeps on endeavoring to help look after peace. Presently is this something that the United States needs to do the snappy answer is no however the vast majority of their exertion is to keep certain moves making place already. There have been a great deal of quarrels that without the United States helping things may have gone in an unexpected way. For this contention, the United States should assist when it needs to yet different nations can not just rely upon the United States for help. The United States ought to be a policing power on the planet in light of such fights like the Spanish-American War, World War I, World War II, Gulf War, Bosnian War, and the war in Afghanistan. The Spanish-American War happened in 1898 when Cuba was battling for their freedom from Spain. This was a worry for the United States since they had many put business in Cuba and in addition natives there. Before the United States would focus on anything they would send a war vessel the USS Maine to the Havana harbor. On February fifteenth 1898 the USS Maine and would push the United States into war with Spain. In spite of the fact that they needed to stay unbiased with the contention they were attracted with the assault on the USS Maine. The subsequent clash prompt the Treaty of Paris which was marked on December tenth 1898 which Spain would disavow its claim over Cuba, surrendered Guam and Puerto Rico to the United States and exchange the power over the Philippines (Trask, 2011). In 1917 the United States would enter World War I when they were attempting to stay nonpartisan again to remain out of the contention. This was changed anyway when Germany would utilize its submarines to assault impartial boats. The Germans damaged its promise to suspend confined submarine fighting in the North Atlantic and the Mediterranean (Randolph, 2011). Germany would assault and slaughter traveler ships guaranteeing they were conveying supplies to Allied countries. Due to this broken promise and furthermore that Germany was endeavoring to inspire Mexico to go along with them in their motivation provoked the United States to enter the war. The war would end with Germany surrendering in 1918 which would prompt the Treaty of Versailles. World War II began in 1939, while the United States would stay out of the war until 1941. The United states would stay unbiased and just help the war with its assets to the Allies until the point that the assault of Peral Harbor on December 7, 1941. The United States would need to confront rightist hostility and the battle ready belief system of the Axis powers. The United States would give the solid business and labor that would help turn the course of the war. With the finish of World War II in 1945 it would prompt the formation of the United Nations which should keep up the peace and security of the world. The Gulf War started on August second, 1990 and was in light of the attack of Kuwait from Iraq. This war was made of basically the United States and coalition powers that saw this episode as an out of line and uncalled for. At the point when the intrusion initially began, kindred Arab powers called upon the United States to mediate (History.com, 2009). The coalition would raise 700,000 troops however 540,000 were United States military individuals and would lead the powers that would begin the immense air crusade and later push in with ground powers (Britannica, 2016). The war would end on February 28, 1991 and would prompt the Iraqi powers withdrawing Kuwait and furthermore prompt the UN to pass Resolutions that would make a truce and make an extraordinary commission to assess Iraq’s concoction and organic weapons on the off chance that they had any. The Bosnia War which occurred in 1992 and was the second most demonstration of destruction since World War II with the Nazi administration. This war would slaughter up to 200,000 Muslim civialins and more than two million would move toward becoming outcasts amid the contention. The United States would stay out of the contention and help deliver truce arrangements which were later poor by the Bosnian Serbs. This would have prompted the United States to make firm move and lead an enormous bombarding effort against the Bosnia powers key military positions. Following this the United States would drive the Serb pioneers to talk peace and consent to arrangement that would end the contention and in addition have the pioneers confront atrocities (“The History”, 1999). The War in Afghanistan was driven by an assault on the United States by the Taliban that would bring a protracted war. After the assault on the World Trade Center in New York City the United States would interest for the pioneer of the Taliban Osama Bin Laden be turned over for atrocities. It would not be until 2011 that the pioneer would be found and executed by American powers in Pakistan. After this the United States, would help by abandoning a peacekeeping military power to help revamp the nation. This would be a moderate withdrawal of troops after 2014 until 2016. This was a protracted style war which as a matter of fact I spent the greater part of my profession in being conveyed to this nation where we assist attempt with bringing a steady government. All in all, there have been numerous wars in United States history and some could have been maintained a strategic distance from. This isn’t the view however of America when they feel something is vile and out of line they will venture up and remain for what they believe is correct. There might be sees that the United States should allow different nations to sit unbothered and stress over their own particular nation. That the United States is a sort of spook that in the event that you don’t trust in their perspective then they will assault you. This isn’t the situation the United States goes up against the part of policing of the world not that it aches for power or needs to flaunt its strength. The United States is a super power and it needs to act like one by assisting those that need it or request help and will battle for the privileges of all around the globe.>