Benchmark Report Provides Valuable Insights and Trends

 Benchmark Report Provides Valuable Insights and Trends

 Single Source Systems recently conducted a survey on commission and rebate management trends. The results of the survey, along with insights derived from the findings, were compiled into a benchmark report now available for download.

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Survey Reveals Divided Opinions

When asked to identify the top operational benefits/priorities of a commission management solution, respondents showed divided priorities. Examples include:

Automation. Respondents named time (37%) and accuracy (31%) as the top benefits, emphasizing the importance of streamlining and automating processes.

Frustration. But only 5% named reducing team frustration as an important feature, showing that administrators may be suffering in silence over the headaches they face due to preparation time and accuracy problems. This denial can hide a powder keg of resentment felt by the sales team that can explode without warning.

Visibility. Improving visibility and reporting for the sales team was also cited by 16%. This is a disappointing data point, because visibility is actually extremely important, deserving more attention.

One possible reason for the oversight is that the survey responders are predominantly in accounting roles, not sales. They may be unaware of the hidden impact of poor visibility on the sales team.

What type of incentive components do you offer sales agents?

Most companies (74%) offer a salary plus commission. But other fundamental compensation components are surprisingly absent from the programs of several respondents. Simple incentive programs are easier to maintain and change than those that are more complex. This over-simplification of components can yield lackluster results.

Higher Priorities. Less than half (42%) consider qualifying transactions when calculating commissions. While this approach may simplify data analysis, it lacks strategic focus. Most companies have a territory, product line, market, or service that warrants special efforts. Those extra efforts should be compensated at higher levels.

Time Sensitive. Some companies apply a timeframe for the incentive. A large portion of companies (42%) offer a bonus based on a specific time period. But only a small amount (16%) offer short-term spiffs. This is a missed opportunity. Layering limited time programs over the compensation plan can add urgency and focus for product launches or other sales bursts.

Rewarding Teamwork. Only 16% consider team performance as well as the individual’s performance in calculating commissions. This ignores the team dynamics that contribute to successful selling of complex products where multiple people may be involved in account research, product demos, replying to RFPs, or supporting extended sales cycles that can last months.

IncentViz Supports More Options

With a modern commission management solution, purpose-built for tracking commissions and rebates, you can set your sights higher, planning more strategic goals. IncentViz provides the capabilities you need plus advanced features, visibility, and flexibility.

You can offer

• Sales plans with multiple variables to drive sales behavior
• Higher commission rates for priority products, accounts or regions
• Bonuses based on a special timeframe
• Short-term spiffs
• Commission on team performance as well as individual performance