Complex industries, like third-party logistics (3PL), can have complex commission plans, but attracting and retaining sales talent is easier with transparent compensation and commission structures. How can 3PL providers manage complex sales commissions for maximum success? Follow these four key values: transparency, simplicity, accessibility, and efficiency.
Sales talent on a 3PL scale
3PL is a growing industry. To facilitate growth, providers need sales talent capable of capturing a portion of the coming growth. In 2022, 56% of sales professionals were actively searching for a new job, and turnover for sales professionals is 27% higher than the overall labor force. So 3PL companies looking for top sales performers must have standout recruiting and management strategies in place to attract and retain top talent.
Compensation transparency is a key factor in a solid recruiting and retention strategy. Ensuring that prospective and current sales reps understand their commission plan is essential to keeping sales professionals motivated and engaged.
Commission management for 3PL providers
Creating accessible and transparent commission plans for 3PL sales teams is easier said than done, but an advanced commission tracking and reporting system helps 3PL providers:
Simplify complex calculations and forecast the effects of any commission plan changes before the change is made
Connect sales activities to commission payouts to help sales professionals maximize efficiency and productivity
Improve accessibility and transparency with custom dashboards containing real-time data on sales numbers, commission goals, and payouts
Increase efficiency and financial control with detailed analytics, accurate data, custom reporting, and advanced forecasting
Streamline workflows and increase productivity with time-saving automation features for effortlessly calculating complex commissions, automating approval flows, and reducing manual data entry and calculation errors
Growth strategies for 3PL success
As you structure your sales commission strategy to motivate your team, it’s equally essential to structure your sales and growth strategies to optimize success. A motivated team taking the wrong actions generates subpar outcomes — and as the 3PL industry grows, a growth-focused sales strategy ensures that your business grows with it.
Keep your sales team focused on growth with these core strategies:
Target industries in need of your specific solutions. Trying to meet the needs of every industry all but ensures you won’t meet the needs of any. By identifying key industries most in need of your solutions, your sales team can take a targeted and focused approach to 3PL sales.
Consider specializing in key markets or 3PL services. Your expertise is a notable selling point, and specializing in key markets or services in which your company has proven results makes it easier for your sales team to narrow their outreach and strengthen their pitch.
Develop expertise among sales team members. Train your sales team to emphasize specialized features and focus on niche markets, and encourage them to develop expertise for each target audience or specialty. With this added effort, your team will have extra insight into the needs and solutions appropriate for each client, which helps build trust and results in higher-quality sales.
Organize commission structures around desired outcomes. There are myriad ways to design your sales team’s commissions, but designing commission structures around desired actions and outcomes ensures your sales team is rewarded for focusing on what matters most.
Third-party logistics is a complex industry with an equally complex sales process. But by organizing your sales and commission strategies around transparency, simplicity, accessibility, and efficiency, you can motivate and retain top sales talent while driving new growth for your company.
For an advanced sales commission management solution customized to support 3PL providers with complex sales and commission processes, schedule a demo with SalesVista today.