Welcome back -

Services for Organizations

Using our research, best practices and expertise, we help you understand how to optimize your business processes using applications, information and technology. We provide advisory, education, and assessment services to rapidly identify and prioritize areas for improvement and perform vendor selection

Consulting & Strategy Sessions

Ventana On Demand

    Services for Investment Firms

    We provide guidance using our market research and expertise to significantly improve your marketing, sales and product efforts. We offer a portfolio of advisory, research, thought leadership and digital education services to help optimize market strategy, planning and execution.

    Consulting & Strategy Sessions

    Ventana On Demand

      Services for Technology Vendors

      We provide guidance using our market research and expertise to significantly improve your marketing, sales and product efforts. We offer a portfolio of advisory, research, thought leadership and digital education services to help optimize market strategy, planning and execution.

      Analyst Relations

      Demand Generation

      Product Marketing

      Market Coverage

      Request a Briefing

        Mark Smith's Analyst Perspectives

        << Back to Blog Index

        Sales Compensation Easier To Manage with Varicent 7

        To help sales teams to maximize their value to the company, sales operations and management must find the right balance of compensation and incentives to motivate them to achieve their quotas. To do this requires the ability to design compensation plans that take into consideration products, territories and accounts and of course the number of customers and prospects. Sales managers also need flexibility so they can build plans that align to sales objectives and realistically evaluate the potential of products and services for each territory and customer opportunity. Our benchmark research on sales performance management found that many organizations fall short in these capabilities: One-third of research participants said they have no confidence in their existing sales operations and management, and 26 percent more said they are only somewhat confident in them. Faced with this negativity, many organizations are trying to improve their processes by adopting applications designed for these and related aspects of sales.

        The sales performance management capabilities of Varicent enable a strong focus on sales compensation and incentives. The vendor has released version 7 of its flagship software that helps reduce the complexity and time not just of administering them but also of designing compensation models. The visual design capability helps sales operations teams define and assemble plans faster and create workflows of calculations through connectors that clarify the analytics applied to sales compensation. At any point in the process users can review closed deals by products and customers to determine what level of incentives have been earned. This ability also facilitates auditing of sales compensation if disputes or other issues arise. This method of incrementally building calculations adds visibility into numbers and calculations that many organizations have trouble handling with spreadsheets and formulas. The value of this is shown by our research finding that in almost half of sales organizations reliance on spreadsheets and their complexity directly correlate to lack of confidence in sales operations.

        To further simplify sales compensation, Varicent 7 has built prebuilt models, rules, forms and reports. It also allows rapid modeling, scenarios and analytics to determine the best plans for particular business and financial objectives. We observe that demand for the use of analytics as part of sales performance management is growing in sales organizations (See: "Sales Analytics: Is Your Sales Organization Selling to its Potential?"). As well, it is not unusual when compensation plans are put into production that some calculations must be edited to adjust the plans, and Varicent 7 enables this. What's more, until recently, suppliers of sales performance management have paid relatively little attention to Europe. But now Varicent has added language support for French, Russian, Spanish and Swedish, which can help organizations with sales operations in both U.S. and Europe as well as local companies there.

        Varicent's improved visualization of sales performance more easily presents progress toward quotas, and the company also has enhanced its flexibility in reporting. Varicent 7 is easier for sales reps to access and also more easily configured to provide quick access to information about the individual's sales and compensation activity. In addition a new level of communication has been added through a message center that provides methods for approval and review between sales staff, operations and management.

        Varicent has been growing rapidly with its focus on sales automation and management of compensation and incentives. Only a handful or providers can match its capabilities, among them Callidus, Merced Systems, Synygy and Xactly. We advise organizations that they cannot achieve this kind of flexibility by using their current customer relationship management (CRM) or sales force automation (SFA) systems, which do not focus on these objectives. Varicent also offers a choice in how its software is deployed - purchased for use on premises or rented on demand in the model commonly referred to as cloud computing. Varicent continues to advance sales performance management through a strong focus on one critical aspect of sales: the optimal use of compensation and incentives to motivate sales personnel and increase profitability.

        Let me know your thoughts or come and collaborate with me on Facebook, LinkedIn and Twitter.


        Mark Smith - CEO & EVP Research


        Mark Smith
        Partner, Head of Software Research

        Mark Smith is the Partner, Head of Software Research at ISG and Ventana Research leading the global market agenda as a subject matter expert in digital business and enterprise software. Mark is a digital technology enthusiast using market research and insights to educate and inspire enterprises, software and service providers.


        Our Analyst Perspective Policy

        • Ventana Research’s Analyst Perspectives are fact-based analysis and guidance on business, industry and technology vendor trends. Each Analyst Perspective presents the view of the analyst who is an established subject matter expert on new developments, business and technology trends, findings from our research, or best practice insights.

          Each is prepared and reviewed in accordance with Ventana Research’s strict standards for accuracy and objectivity and reviewed to ensure it delivers reliable and actionable insights. It is reviewed and edited by research management and is approved by the Chief Research Officer; no individual or organization outside of Ventana Research reviews any Analyst Perspective before it is published. If you have any issue with an Analyst Perspective, please email them to ChiefResearchOfficer@ventanaresearch.com

        View Policy

        Subscribe to Email Updates

        Posts by Topic

        see all

        Analyst Perspectives Archive

        See All