You are currently browsing the tag archive for the ‘Sales Compensation’ tag.
January 11, 2013 in Big Data, Business Analytics, Business Collaboration, Business Intelligence (BI), Business Performance Management (BPM), Cloud Computing, Customer Performance Management (CPM), Financial Performance Management (FPM), Governance, Risk & Compliance (GRC), Information Applications (IA), Information Management (IM), Operational Performance Management (OPM), Sales Performance Management (SPM), Social Media, Workforce Performance Management (WPM) | Tags: CPQ, CRM, Marketing, PIM, Product Information Management, Sales, Sales Compensation, Sales Forecasting, SFA | by Mark Smith | Leave a comment
Most organizations see improving the effectiveness of sales as a way to increase productivity. Those organizations that take advantage of the latest sales applications and technology are finding themselves with a competitive advantage, but many organizations lack the time and resources to assess and deploy appropriate platforms. That’s a shame, since most sales organizations have plenty to improve in their selling, forecasting, incentives and planning according to our latest research on sales performance management. We found a high demand even for many of the basics; for instance, many organizations still use personal spreadsheets or outdated applications that are costly to manage. At the same time, marketing organizations are investing heavily to be more revenue- and sales-focused to ensure they maintain relevance and contribute to their organizations’ performance and profitability. Both sales and marketing have fixated on specific processes and how they can work better together.
Our research agenda for 2013 calls for us to examine how organizations can maximize results through new business technology, adopt dedicated applications designed for sales effectiveness and marketing, and use best practices to be faster, smarter, better and more cost-effective in operating sales.
The top three technology trends in sales are analytics, collaboration and mobility. Together with advancing technologies such as business and social collaboration, they are helping increase the flow of information to help managers coach and increase employees’ learning potential. Mobile technologies such as smartphones and tablets are becoming more common, tied to dedicated sales applications and tools that now become more accessible at any time or any place. We will conduct more research in 2013 on the growth in social and mobile sales to see how early adopters are doing and where the industry is improving with these new technologies. At the same time a lot of new software is available through cloud computing; you can rent and configure the software for your organization, reducing the need for IT resources to implement, deploy and maintain it. Advancements in dedicated sales analytics can help organizations understand performance, and help plan and predict sales, providing a path for increasing optimization and letting users more readily share information with finance and operations. We plan to conduct more research into the next generation of sales analytics and build upon our existing research, making sure that the metrics and plans adapt to the existing economic and industry environment.
Many sales organizations realize that traditional sales force automation is mostly for tracking accounts, contacts and opportunities. In 2012 many SFA providers started to expand to a broader sales performance management platform, with integrated forecasting, collaboration, document management, quotas and territory management. This new focus, along with a rapidly expanding set of dedicated applications that have evolved from sales compensation, can bring better incentives, quotas, territories and analytics. This evolution of sales application suites was evident in our 2012 Value Index for Sales Performance Management.
My personal perspective is that 2013 will be even more competitive. While sales compensation management software has been evolving over the last 15 years, it is still finding its place in increasing numbers of sales organizations. In 2013 we will assess how and where sales should be managing compensation and incentives. Many sales organizations that are still wedded to the use of spreadsheets will come to realize that the use of such outdated software impedes their ability to manage sales effectively. It’s not easy to manage forecasts and pipelines that have specific time series and change level analytics in a spreadsheet; a better approach is to use applications designed for the task, and designed not just for sales operations but for the entire sales team. Our recent research in sales forecasting finds areas of improvement that could have dramatic impact on course-correcting sales activities and moving beyond the probability of sales to the confidence of the forecast, which is probably why forecasting was the top application priority in sales according to 65 percent of sales organizations. Sales is also starting to realize the advantages of using marketing in demand generation processes, which nurtures leads into opportunities and can provide a wealth of information to help sales organizations better engage with prospects.
Sales organizations with limited resources and time need to use best practices and not waste time on technology that’s not ready for deployment or that fails to match up with the competencies of their teams. Interactive social collaboration across sales teams is a better and more effective practice than a myriad of emails. In addition, the use of product information management through all channels of sales and marketing is essential, but our product information management benchmark found significant room for improvement as organizations work to ensure proper representation and highest customer satisfaction. Our assessment of PIM vendors finds many addressing these needs and delivering benefits for sales.
As the configuration, pricing and quote (CPQ) process gets more automated, sales organizations find better consistency in their business processes, including in the fundamentals of contract management. Sales organizations have significant room to improve in supporting non-direct channels and ensuring that data and processes are aligned to the overall sales target. As marketing gets its act together on demand generation, the scoring and qualification of contacts for their true interest through a lead nurturing processes that include behavior, demographic and relevance will help identify the right opportunities for sales to act upon. Sales organizations need to address technology best practices and use analytics and metrics that can be harvested from modeling and planning methods in order to increase the quality of their results. I expect that big data and predictive analytics also will make inroads with innovative sales teams in 2013.
What’s old is still new with sales, and improving upon forecasting, compensation, coaching, collaboration and learning will be job one for those that really want to drive excellence. Applying talent management process with adapting the existing sales team and hiring the right team members, and help ensure that everyone contributes to the business of sales. The rapid increase in the use of smartphones and tablets in sales is leading to a new generation of applications and technology that can better meet sales teams’ needs. I expect to see more reengineering of marketing and sales processes, improving leads and materials and using automation to enhance the quality of leads and move beyond just the process of passing a quantity of useless leads. Finance organizations can also demonstrate their commitment to improvement in sales processes by offering to help argue the business case that delivers the benefits they care most about, which is profitability.
Being more timely and proactive in sales is the mantra for 2013. Those organizations that are prepared to use technology to those ends will be the ones that maximize their potential and retain sales teams that can contribute to financial profitability and customer satisfaction.
CEO & Chief Research Officer
March 7, 2012 in Business Analytics, Business Collaboration, Business Mobility, Business Performance Management (BPM), Cloud Computing, Customer Performance Management (CPM), Financial Performance Management (FPM), Operational Performance Management (OPM), Sales Performance Management (SPM), Social Media, Workforce Performance Management (WPM) | Tags: Analytics, assets, Business Collaboration, channel, coaching, Collaboration, commission, CRM, forecasting, incentives, leads, Learning, Mobile Business, objectives, Performance, pipeline, planning, pricing, promotion, proposal, quota, quoting, Reporting, rewards, Sales, Sales Compensation, Sales Force Automation, sales force automation and territory, Sales Performance Management, SFA, social enterprise, Social Media | by Mark Smith | 2 comments
Investing wisely in sales-related people and processes is a key to business success. In 2012, helping sales staff perform at their highest levels should be a top priority for management. That may take some effort, according to our benchmark research, which indicates that only 14 percent of sales organizations operate at the highest level of innovation and competitiveness. In recent years, most organizations merely discussed moving beyond using only their sales force automation application and Microsoft Office for improving sales efficiency. Now sales organizations can move beyond systems that were designed decades ago, thanks to the availability of a broad range of applications to support sales activities and processes. In fact dozens of new types of sales applications are available to help sales focus on selling, which creates another issue. Where should sales organizations focus their limited resources and budgets?
Ventana Research intends to provide guidance here. We have identified important overall business trends identified, including big data, business analytics, business collaboration, cloud computing, mobile technology and social media; all of these areas offer new competitive opportunities for improving sales efficiency and effectiveness. For example, the use of sales analytics puts 17 percent of sales organizations at the Innovative level of maturity in the Ventana Research Sales Analytics benchmark research. These organizations benefit from daily and weekly metrics about the pipeline and forecasting, quotas and the performance of account reps. As well renting sales applications through cloud computing has become the preferred practice in 41 percent of sales organizations, compared to 25 percent that purchase them in an on-premises, according to the Ventana Research Sales Performance Management benchmark research. In mobile technology, 67 percent of sales staffs use smartphones today, 17 percent use tablets, and 30 percent plan to expand their existing deployments, according to our research. In the area of collaboration, having people broadcast and post their needs to help in the sales process is a top priority in more than one-quarter of sales teams, compared to legacy methods of electronic mail and instant messaging.
Our upcoming research aims to help your sales organization turn these business technology advancements to your sales advantage. Ventana’s 2012 research agenda on the business of sales will focus on three key areas at the intersection of people, processes, information and technology: improving the potential of the sales organization, establishing dedicated methods to manage sales and accelerating time to sales readiness.
In the area of improving potential, we will look at the use of social and collaborative technology to coach and guide sales. We will examine the use of mobile applications accessible from smartphones and tablets. And we will assess the use of product information management to help configure deals and price them efficiently. Each of these address the need to improve access for sales to the applications that can help improve the potential of achieving revenue targets.
Establishing dedicated methods to manage sales requires many sales organizations to improve compensation and incentives that influence sales reps’ performance. Sales forecasting was identified as the most important application for 65 percent of sales organizations in our research, yet most are still using spreadsheets, which we found to impede the management of sales. Instead, sales forecasting should be a team-based business process that incorporates management of the pipeline. Sales analytics and metrics can help optimize activities and processes in key management categories including people, performance, process and risk. Our research found that 86 percent of organizations want to have simpler sales analytics, but most struggle with the difficulty of building and maintaining silos of one-off spreadsheets and presentations. Managing sales can be much easier with targeted applications that can assist managers with oversight and guidance.
Finally, accelerating time to sales readiness is important because many organizations perform tasks that take two to 10 times longer than necessary, and they often wait for long periods to get the information they need. Organizations can use SFA as a source of information for the operational and performance needs of sales, but a best practice is to use integration tools. Cloud computing can reduce IT challenges and resources while providing ready access to applications and information. Providing information through mobile and social media also can improve sales readiness and make it easier to respond to sales opportunities. Scattered information was rated as the most significant impediment in 58 percent of sales organizations, indicating the importance of improving the management and use of information.
Our research agenda will examine applications that focus on sales, considering the broad range of analytics, assets, channel, coaching, commission, forecasting, incentives, leads, learning, objectives, performance, pipeline, planning, pricing, promotion, proposal, quoting, quota, reporting, rewards, sales force automation and territory. In addition, our Ventana Research Value Index methodology again will assess vendors and their suites of applications and tools in sales performance management. Our newly released benchmark on sales applications and technology uncovered the priorities of organizations in applications as well as new technology trends, and we have previously released research on sales analytics, business and sales data in the cloud and total compensation management. The next benchmark we’re conducting is in the area of product information management, and it will be followed by sales forecasting.
I believe that 2012 will be a critical year for sales operations teams, which have to perform more tasks faster and more effectively than ever before. Only 39 percent of sales organizations have any confidence in their organizations’ ability to manage sales operations and performance, indicating a significant opportunity for improvement. Utilizing new applications and software that can handle analytics and planning for tasks in sales will be essential in helping sales staffs utilize their time efficiently. Simplifying access to applications through mobile technology and enabling sales people to work collaboratively and socially should be key priorities for sales executives.
Sales cannot overachieve without making investments that target the culture and environment that sales executives want to establish. Our research will help them understand the best practices that can save time and money while reducing the risk of failing to achieve maximum results.
Mark Smith – CEO & Chief Research Officer