Offering a sales commission to the sales reps working for your company is a general practice exercised by almost all businesses worldwide. The prime objective behind offering this sales commission is to motivate the reps to work harder and put in more effort in the job and increase productivity by ensuring a good and exponentially growing sales performance. The reps are assigned a certain sales quota by their sales leader or sales manager, together with the quota they are also assigned a certain time span. They are then supposed to achieve the assigned sales quota within the specified time frame. On successful attainment of the quota within the allocated time, the reps receive a certain sales commission for their contribution. This process of handing out the sales commissions is managed and operated by a plan called sales commission plan, this plan is designed, managed and operated either through a certain sales commission software also called commission management softwares, or manually through spreadsheets.
What caused the transition in the mode of commission planning?
Earlier the use of spreadsheets for commission planning was very much in practice but as the businesses grew and expanded and more sales reps joined the companies, the complexities in the process of commission planning and managing however also grew. In order to cope up with the problem and tackle the difficulties faced in commission planning because of spreadsheets, businesses started to switch to the commission management softwares for the job of commission planning. There were many difficulties caused in manual commission planning some of which are errors and miscalculations, compromised leadership, failure at achieving the assigned quota and much more.
Benefits of using commission management software
Using software for any specific job would certainly simplify the work and would bring about promising results. Same goes for the commission management softwares. They ease the job of commission planning for the reps. Let us take a deep insight into what all does these softwares have to offer to a business that makes them preferable.
- Higher accuracy rates: Manual sales commission planning through spreadsheets is prone to errors and miscalculations, commission management softwares however are immune to such errors in the calculations of commission statements. All calculations of the statements are done through a well-defined algorithm which certainly makes sure that there are no errors in the calculation.
- Data insights: A software would track every single unit of sales made by the reps and also the performances of the reps which can further be used by your business in the coming days in whatever way needed.
- Storing and stacking of data properly: If you work for a Multinational Company, you do know how troublesome it can become to keep the records and data of all your employees and reps throughout the offices stacked and organised properly. Commission management softwares would certainly simplify this to by stacking the data according to certain predefined algorithms.
- Transparency and easy accessibility: A commission management software would offer transparency to the reps by offering an easy accessibility of the data related to their sales performance. The reps can access the data related to their sales performance at any point of time and act accordingly.
- Spiff: SPIFF is like any other incentive handed out by companies to the reps. The spiff definition is Sales Performance Incentive Fund which can either be monetary or non-monetary according to what the reps consider worthwhile.
ElevateHQ is an excellent software which offers all the key features like accuracy, flexibility, data insights and real time exposure which as a whole make it the best software.