A SaaS Software company

Case Study

A SaaS Software company

This Client was experiencing declining revenue, largely driven by the decision to bifurcate the business units and limit the portfolio of what reps could sell, which resulted in misalignment between what the customer wanted, and what the rep was measured against. Cortado recommended restructuring the business and developing a compensation plan that would drive growth.

Company’s *Growth* *Challenge*

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• Sales & Marketing misaligned and often at odds with each other
• Sales reps were not able to sell the entire product portfolio
• Misalignment between selling and buying process
• Plan design was complex and did not drive desired behavior
• Insufficient upside opportunity for top performing reps
• Outdated quota and territory methodologies resulted in the organizations top performers being penalized
• Sub-optimal quota attainment levels (40%) resulted in below-market pay for sales reps and high turnover (27%)

Cortado Group *Solution* *Strategies*

• Sales Restructuring
• Size the sales force
• New Quota-setting Methodology
• Compensation Plans
• Above-plan Attainment
• New model
• Seamless rollout

• Restructure the Sales organization
• Size the sales force; this client had the opportunity to recognize many efficiencies by reps being able to sell the entire portfolio of solutions, and this yielded a lower cost of sale
• Developed a new quota-setting methodology, which was informed by account segmentation and potential
• Created compensation plans that aligned with the corporate strategy and revenue growth targets
• Modified the accelerators for above-plan attainment to drive top-performers to overdeliver
• Built a backwards and forwards model to understand rep impact and ensure design adhered to cost envelope
• Developed communication material to ensure seamless rollout of sales strategy and compensation plans

Solutions Provided

• Account Segmentation
• Sales Force Sizing
• Current State Plan Assessment
• Compensation Plan Abstracts
• Backwards/Forwards Financial Model

Key Insight

Client’s enterprise value increased 76% after implementation and utilization of the services provided.

Cortado Group *Results*

• Cost of Sales decreased by 2% due to new org. model
• Number of reps attaining quota increased from 40% to 57%
• Bookings per rep increased by 13%
• Rep turnover decreased from 27% to 20%
• 5% year-over-year increase on SaaS Bookings