Sales commission enables companies to improve their sales performance by taking care of employees’ sales commissions. Most companies, however, choose to manage their sales compensation plans using a combination of spreadsheets and siloed legacy systems.
The outdated system has a significant impact on the company’s commission initiatives. Since the commission plan is managed manually, the commission payout process faces challenges in terms of agility, uniqueness, custom fit, and is error-free. In addition, the traditional system and legacy commission software present significant challenges in collecting relevant data, computing payouts, solving inquiries and disputes, and retaining sales commission best practises.
A modern sales commission software can be useful in this situation. It improves the sales team’s performance by making incentive compensation management more robust, organised, and adaptable.
Seven Ways Sales Commission Software Can Better Manage Your Sales Commission
Using robust and modern sales commission software can help companies overcome all their problems and accomplish more. Here are seven benefits that sales commission software can offer a company.
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Time-Saving
Companies that use spreadsheets and outdated software spend far too much time calculating and maintaining sophisticated sales commission logic. It disrupts the payout process and acts as an impediment. With its in-built sales performance management software, sales commission software automates the entire process.
Companies can release payments faster because of the centralisation of data and automation of numerous administrative tasks related to the payout process and incentive programme. Hence, companies face lesser sales commission-related issues, and salespeople can focus on their sales tasks rather than resolving sales commission issues.
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Real-Time Visibility into the Commission Process
Sales commission software eliminates the commission communication barrier between the company and individual sales representatives. With advanced analytics, sales professionals have complete and real-time visibility of their commission plans, progress, and targets.
This aids in building trust and sales representatives have confidence in the company’s commission management. Once their sales commission demands are met, they tend to be more efficient and productive in their selling efforts.
Real-time insights also assist companies in better analysing sales data, making more strategic decisions, and improving commission plans after evaluating the commission’s effectiveness.
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Payment Accuracy
Traditional sales commission software is prone to inaccuracy, which can cause distrust in the payment process, disrupt sales commission plans, and result in disagreements between the company and sales representatives.
With agile and accurate commission calculations and automation, commission tracking software eliminates the risk of human error. It eliminates the need for manual edits and establishes a great ecosystem for maintaining the sales commission and compensation process.
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Flexibility to Adapt to Innovative Commission Strategy and Plans
As lead generation becomes more competitive and the market becomes more crowded, companies are experimenting with various commission management solutions to incentivise their sales team
Sales commission software helps to implement solutions with perfection using diverse commission models and flexible sales commission. Furthermore, it helps to maintain diverse sales territories, channels, quota, and individual commission goals of the sales representatives and unique incentive compensation programs.
The good news is that companies need not design a complicated system to introduce a new incentive compensation management plan. It takes only a few hours to design it.
Moreover, companies can modify and edit their current sales commission plans without worrying about the system’s capabilities being compromised. Companies can change their sales commission plans at any time during the year if necessary.
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Better Sales Process, Increase in Sales
The sales process becomes much more agile and less complex when companies do not have to spend time implementing sales commission plans and new strategies. Companies may align their sales commission plans with their company strategy by leveraging the flexibility and agility of the sales commission software. Hence, the sales process becomes more system-dependent instead of people-dependent, minimising the risk of errors while ensuring sales operations, optimum process, rewarding sales cycles, and exceeding sales targets.
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Super Performing Sales Team
The introduction of sales commission software aids the company in motivating its sales force to do more. When salespeople meet their targets and earn their commissions on time, they stay with the company for longer. If all commission procedures are followed, companies can retain the best salespeople and build an excellent sales force.
Additionally, enhanced visibility of sales commission aids sales managers in understanding sales representatives’ performance and providing necessary training. Sales management can use the features of sales commission software to detect outliers and poor sales practises to decrease conduct risk.
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Comprehensive Solution
A sales commission software will have the ability to offer end-to-end commission management support. To summarise,
- Adaptability to changing business needs
- Analytics on sales progress and behavior in real-time
- Creating a positive attitude among the sales team
- Examining the effects of new plans
- Managing large geographic areas/territories
- Managing complicated sales commissions
- Manual intervention is minimal or non-existent.
- More insight on sales
- Providing timely and informative reports
- Reorganisation planning and the introduction of new plans
- Resolving queries and conflicts
- Setting accurate quotas
Takeaway
The sales commission process is crucial for motivating sales teams and driving top-line revenue development, and it is perhaps the most essential measure that companies track. Manually computing commissions, on the other hand, leaves room for human mistakes and disgruntled salespeople.
Adopting new-age sales commission software ensures that salespeople, their supervisors, and maybe anybody else in the business have real-time access to commission computations. Representatives are motivated to see what they have earned and seek to earn more when this information is easily available.
