The recent paradigm shift in technology enables all corporate companies, whether small or big, to automate the sales commissions. Sales are certainly the most crucial business aspect that ensures revenue growth.
Using sales performance management solutions instead of the old-school spreadsheets streamline the entire process, reduce the man-hours, and, of course, the resources involved in getting a job done.
Furthermore, sales commission software is an all-rounder solution that assesses the individual performances of the sales reps and assists businesses in determining the sales forecasts.
Benefits of Using Sales Commissioning Software
A sales commissioning software streamlines the commission’s process and offers peace of mind, a performance track record, and motivation. Moreover, the entire process is free from manual errors and is less time-consuming.
Automating sales commission is no piece of cake as it involves complex computation and other mathematical logic to devise different commission formulae. In addition, the entire software system must smoothly integrate with existing processes, such as Customer Relationship Management (CRM), data lakes, and Business Intelligence (BI). A top-class sale commissioning software addresses all these problems and offers flexibility and compatibility with other object-oriented applications.
Furthermore, the commission modelling platform allows the teams to change the commission plan and roll them out throughout the organization. This way, the sales team doesn’t have to wait to see the results.
Collaboration Between Sales and Finance
The overall sales commission design and management is the hardest part for any organization. Many sales representatives and avengers neither understand nor trust the commission numbers. Furthermore, the salespeople have little to no transparency of the entire calculation process, thus increasing overall frustration.
On the other hand, the finance team’s role is to increase revenue growth, which sometimes leads to an internal monopoly between the sales and finance teams.
To address the above challenge, the management and stakeholders need to opt for a transparent sales commission software that designs, plans and manages the commission task.
Additionally, the sales commission process becomes more complex in multinational companies operating in different regions with various sales plans, diverse geography, and culture.
Using spreadsheets to calculate incentives is prone to manual error. Furthermore, detection of such an error is yet another challenge as it takes months for identification. Therefore, a sales commissioning platform audits all the real-time data regularly and accurately calculates the commissions.
Additionally, there are zero chances of corruption or data manipulations as all the calculations comply with commission policy. Lastly, the software ensures complete traceability along with the timestamp of the changes.
Strategic Sales and Account Management
One of the most significant advantages of using sales commission software is the data integration on one platform allowing the sales manager to view the team’s performance. Furthermore, the software integrates data from other sources, such as customer information and sales accounts.
When analyzed, all the above data can offer valuable insights about the sales, priority customers, and best performing sales representatives. Furthermore, the data also highlights the areas of improvement, thus allowing the stakeholders to be timely decide the sales strategy for the next quarter or year. The sales manager can prioritize the sales accounts and assign them accordingly.
A sales management software enables the organizations to assess the market, sales cycles and target the right audience. In addition, the available data trends of the current and previous years serve as the basis to forecast sales for the coming years.
Qualities of the Best Sales Commission Software
- Tracking of the input of the sales figures and the calculated sales incentive
- Complete traceability, accountability, and distribution of the commission
- Ability to customize the settings, depending upon the location, job role, sales type, and tenure.
- Daily reporting and analysis for future sales projection.
Sales commission serves as a tangible revenue growth measure by appreciating the sales representatives who meet the sales goals. If you don’t want the Finance department to be spending most of the time handling spreadsheets to calculate the sales commission manually, it’s highly recommended to use sales commissioning software.
Those days are long gone when companies used spreadsheets to calculate sales commissions per quarter. Automation and data integration on a unified platform and management software with high computational power is undoubtedly a cost-effective solution.