Breaking Through the Growth Ceiling: Sales Compensation Redesign for a Food & Beverage Market Leader
Background
A 120-year-old market leader in the food and beverage industry reached an apparent growth ceiling despite its strong market position and rich history. After multiple internal attempts to address stagnating performance failed to deliver results, the company engaged Empirical to diagnose the root cause and develop a solution. The challenge centered on restructuring the sales team’s compensation to drive meaningful business results.
Objective
The company sought to develop a pay-for-performance compensation plan that would motivate an experienced sales team, reverse stagnating growth, and deliver top-line revenue expansion. Leadership aimed to retain existing accounts while successfully introducing new products into emerging markets. Empirical was engaged to design and implement a compensation structure aligned with these strategic priorities while retaining top sales talent.
Methodology
Empirical deployed a comprehensive compensation redesign approach focused on strategic alignment and performance optimization.
- Current State Assessment – Evaluated the existing commission structure to identify gaps, misalignments, and “quick win” opportunities for immediate impact.
- Strategic Alignment – Collaborated with the executive team to align sales goals with short and long-term strategic vision, emphasizing account expansion and new market entry.
- Benchmarking & Plan Design – Developed performance targets and compensation plans benchmarked against high-performing organizations in the industry to ensure competitiveness and motivation.
- Change Management & Communication – Rolled out the new incentive plan through structured coaching and training sessions to ensure sales team understanding and buy-in.
- Performance Infrastructure – Provided tools and systems for planning, measurement, and reporting of performance and results to enable ongoing accountability.
Results
- Increased gross profit by 10% in the first year of implementation while breaking through the previous growth ceiling.
- Reduced compensation plan costs by $500K through strategic restructuring and performance alignment.
- Aligned pay with business priorities, ensuring compensation drove the behaviors needed for account expansion and new market penetration.
- Retained top sales talent by creating a compensation structure that rewarded high performers appropriately.
- Motivated experienced sales team to deliver results after years of stagnation, creating momentum for sustained growth.
