Companies working in various industries and on different scales of operation are beginning to realize the importance of efficient sales performance management. Whether it is about managing your sales reps or providing them with effective incentives or compensations, the need for an SPM tool is increasing day by day.
There’s a bunch of digital software programs out there to help companies and brands automate their SPM to ensure effective and efficient performance. But how do you make the most out of your software solution? We’ve rounded up some of the most common mistakes that we see companies making, together with some ideas on how to solve them.
- Poor compensation plans
Compensation planning is an integral part of the SPM ecosystem. We identify poor communication and the over-complexity of these plans to be the root cause of many common problems. Many companies make the mistake of designing individual-based compensation plans for their sales reps, which means that the management and calculation of each plan make the whole process a lot more difficult.
Also, straightforward and aligned objectives are very important to ensure good communication. Pre-planning using an automated SPM tool can help in making better compensation design plans.
- Demotivated sales reps
Other ways to ensure a motivated sales team include regularly assessing their work and performance, and helping them develop their skills. Positive and simple two-way communication is vital to ensure a healthy exchange of feedback and constructive criticism.
- Failure to adapt
Many huge companies have a problem in their approach because they are slow to adapt to new ways of working. They then justify failing methods by saying that this is how it has always worked for them.
However, in today’s ever-changing environment, business models and designs are also changing. The individuals working with your organization change over time, and so do the people your company targets. Therefore, changing with them and adapting to new methods is vital for your success.
Using digital platforms and solutions for SPM can help you react to a changing market in real time, and identify the segments within your sales team based on their experience and their time working with you.
Varicent’s SPM and Sales Compensation Solution
Are you a troubled business owner or a sales department manager who is looking for the perfect solution to your SPM?
Varicent is an active software that acts as an all-in-one solution for your SPM. Through the use of automation and efficient compensation plan designs, our services ensure that you enjoy the following benefits:
- Single sign-in — you can log in with your company password, so there are no additional passwords to remember
- Easy communication within the platform to deal with enquiries quickly and easily
- An intelligent chatbot and knowledge base to answer common queries
When you work with Varicent, we will provide you with personalized compensation design plans. Varicent offers compensation plans, starting from the payment to the transaction personalized and customized exactly for your company’s needs. We provide fully updated and advanced performance calculators that you and your sales rep can use to assess their rankings and their compensation payments.
For companies that have a huge sales team and need better management, automated solutions help cope with this issue. All the steps included in compensating management will be automated, starting from data collection and calculations to managing databases and transactions. This will help you minimize human errors and save everyone in the business valuable time.