SaaS + Sales Performance Management = Recession Resilience

4 min read

With recession alarm bells going off all over the world, smart managers are looking for ways to make their businesses more recession resilient. Reducing your cost base, making sure you have operational flexibility, and boosting employee productivity are three well-proven tactics.

Software as a Service (SaaS) wasn’t an option during the last recession. But SaaS has established a track record over the past several years, decisively proving its value in supporting the first two tactics: cutting costs and increasingly flexibility. And what’s valuable in the best of times can prove priceless in the worst of times. You know the litany.

In contrast to on-premise enterprise software, SaaS means no upfront hardware and software costs, no worrying about costly ongoing software maintenance, and no vendor lock in. Instead of being tied to an expensive software infrastructure, you’re free to quickly implement changes. And if a SaaS vendor doesn’t perform, you’re free to immediately choose one that will and be up and running in a matter of weeks.

Believe me, savvy SaaS vendors know this. Subscriber retention is one of our key success metrics, along with speedy initial implementation and the ability to quickly deliver innovative new functionality. So, while SaaS delivers lower costs and enhanced flexibility, where does that leave employee and business productivity?

Obviously, not all software applications—SaaS or on-premise—deliver equal productivity boosts, at least not of the kind that directly impact the bottom line. Yet some categories excel in their ability to do so, including Sales Performance Management (SPM) applications.

In a recession, businesses need to invest in getting the most profit possible out of their front-line employees. SPM applications provide this value by helping align sales behaviors to corporate objectives, focusing reps on the most strategic sales, maximizing agility in the face of market change, and providing visibility into sales success drivers through comprehensive analytics. And along the way, they help greatly reduce administrative time and costs, and support compliance efforts.

The last recession was a boom time for early-generation SPM applications—and that was even before the advent of SaaS. Today, thanks to the SaaS model, the SPM arena is expanding in scope like never before, and SPM functionality such as on-demand sales compensation management is finally affordable to companies of any size.

SaaS plus SPM delivers a genuine double whammy in the face of recession: SaaS economic value combined with SPM strategic business value. It just makes good business sense, whether you are managing in a recession or in a vibrant high-growth economy.