Incentive Program
Sales Performance
A company tracks the sales performance of its salespersons based on several metrics:
- Initial Contacts (IC): The number of new potential clients contacted.
- Qualified Leads (QL): The number of initial contacts deemed likely to become customers.
- Sales Closed (SC): The number of qualified leads that resulted in actual sales.
- Revenue Generated (RG): The total revenue generated from closed sales (in dollars).
- Bonus Earned (BE): The bonus earned by the salesperson based on their performance (in dollars).
The company has two different incentive programs, Program A and Program B.
- Program A: Focuses primarily on revenue generation. Salespeople earn a bonus of 5% of their total revenue generated.
- Program B: Focuses on a combination of qualified leads and sales closed. Salespeople earn a bonus of $50 for each qualified lead and $500 for each sale closed.
A salesperson can choose any of the two incentive programs.
| Salesperson | IC | QL | SC | RG ($) | BE ($) |
|---|
| Hope | 88 | 94 | 5 | 143,000 | 7,200 |
| Jacqueline | 89 | 98 | 9 | 156,000 | 7,800 |
| Henry | 57 | 61 | 4 | 100,000 | 5,000 |
| Katheryn | 86 | 88 | 2 | 120,000 | 5,400 |
| Laura | 68 | 71 | 3 | 112,000 | 5,050 |
| Mark | 104 | 111 | 7 | 122,000 | 6,100 |
| Emma | 91 | 102 | 11 | 113,000 | 10,600 |
Suppose the company wanted to incentivize salespersons to focus more on closing deals rather than generating leads. Which of the following changes to Program B would best achieve this goal?
