Sales Performance Management Best Practices - Avoiding the 7 Deadly Sins of SPM
Sales compensation is the fuel that drives revenue generation. Over $1 trillion is spent annually on sales forces, yet many organizations struggle with incentive compensation management, sales performance management and reporting. This results in diluted sales performance, as carefully designed incentives lose their impact through confusion, errors or spotty feedback.
Why do incentive compensation plans fail?
Incentive and sales compensation can be viewed as an ecosystem that is comprised of several independent systems that all interact with each other. When this ecosystem is out of balance, inefficiencies happen. For example, incentive administration and reporting require excessive manual effort, high error rates occur and the sales back office is viewed as an inflexible roadblock. Furthermore, the sales force may feel distracted, frustrated or even worse — apathetic.
Diagnose Underperforming Sales Performance Management Solutions
We help companies quickly diagnose and remediate underperforming sales performance management ecosystems. After numerous projects, we recognized similar root causes coming up repeatedly and thus was born — The seven deadly sins of sales performance management.
Some of these sins are out of pressure and desperation. Like many, you may lack time, have limited access to proper tools, and are trying to manage the expectations of everyone on your team. Organizations must be transparent in setting the right goals, allowing management to help guide them to success, and deliver on the promise of the compensation plan. Varicent is the sales performance management solution that will support your organization and help your sales force drive growth.
Download our Seven Deadly Sins of Sales Performance Management white paper to learn more about the identified sins, how to avoid them and create the best practices for your SPM.