Sales vs Retention

So I currently work at a sales account that also has a retention department to handle those customers who want to cancel and they're also being commissioned for retaining customers by letting them stay at the same or a better promo which is Ok with me.


But what's not OK that the retention guys are getting a relatively higher commission than sales people I belong to which is pretty weird and odd for me.


Did anyone face a similar situation before at any other company?

๐Ÿ’ฐ Compensation
๐Ÿงข Sales Management
5
aenima
Celebrated Contributor
4
Principal Account Manager
No and this is atypical. Customer acquisition costs are always higher and more difficult to navigate than customer retention, which is why sales reps are incentivized highly for net new customers.

The only exceptions to the above would be if your sales gig is fed by leads and marketing 80%+. How hard do you work to generate demand, really? If itโ€™s hard โ€” then youโ€™re justified to take issue with this.

I would advise you, though, to be less concerned about what someone has that you donโ€™t, and more concerned about the competency of your companyโ€™s leadership.

Good advice for ALL sales people:

Measure yourself by where you were yesterday rather than where someone else is today
Sunbunny31
Politicker
1
Sr Sales Executive ๐Ÿฐ
Great post. I like your last line in particular.
Diablo
Politicker
0
Sr. AE
Nothing more to add. Comparison will only bog you down rather focus, get in more and take out more ($).
TennisandSales
Politicker
1
Head Of Sales
yeah is for sure odd. but it might be because its less expensive to keep a current customer than to sign a new one.

but also, if you start getting caught up in what other people are doing you are going to go insane. Just focus on your job. or, look to join that team.
Maximas
Tycoon
0
Senior Sales Executive
Well thanks for the tip and btw I'm not concerned totally about what others earn, all what matters to me is to be treated fairly for the high efforts exerted for the customers acquisition task which is a hard one as you just mentioned.
BlueJays2591
Politicker
0
Federal Business Dev Director
I find this strange in all honesty. Haven't come across it before
Maximas
Tycoon
1
Senior Sales Executive
Totally strange.
jefe
Arsonist
0
๐Ÿ
How does that make sense?
activity
Politicker
0
VP, Business Development
This is wild. Rarely if ever have heard of a company that commissions retention higher than new business.
Arz
Politicker
0
Business Administration
This is very strange, I'm sure it's not common
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