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CAC and Comp: A Relationship Worth Exploring
CAC and Comp: A Relationship Worth Exploring
Customer acquisition cost (CAC) has been on everyone’s minds. Especially the question of how to keep CAC down while driving growth. Optimizing your sales funnel is one way. Focusing on your ideal customer profile (ICP) is another. But how can you bridge the two and motivate selling behaviours accordingly? The answer is in compensation plans.
Discussion topics
Uncovering your true ICP
Incentivizing your teams to focus on your ICP
Multi-year accelerators and bonuses
Adjusting commission rates in favor of expansions
Key Takeaways
Understand effective rates - consider the impact of compounding accelerators or having multiple people on the same plan.
Keep it simple! Avoid overcomplication - no more than three components are recommended.
Empower reps with visibility - make sure your reps have insights into drivers and that they understand them!