Sales performance management (SPM) and incentive compensation management (ICM) are often used interchangeably. While at one time, these two terms did essentially mean the same thing, SPM now encompasses far more than just compensation. SPM refers to sales planning, comp management, performance optimization—and everything in between. Along with the evolution of SPM, sales and finance teams are gaining more opportunity to take control and influence their sales processes and revenue outcomes.
In order to understand the current and future landscape of SPM, leaders should first be familiar with several key facts.
Fact #1: In 2017, the average quota attainment was at 53%, and this rate is continuing to trend downwards.
Fact #2: Gartner estimates that 10% of annual sales are lost by enterprises that do not have optimized management of sales territories, quotas, and compensation plans.
Fact #3: A lost sales rep can cost companies an average of $115,000 to replace.
So what’s the takeaway? Without leading automated SPM tools, companies are leaving money on the table. Reps who don’t hit their quotas are more likely to leave—resulting in huge financial cost and missed revenue opportunities.
The good news is SPM can deliver on its promise for improvement. By implementing leading sales performance management, companies can expect to be impacted by several other (and more encouraging) key facts.
Fact #4: SPM can increase sales revenue and performance up to 15%.
Fact #5: SPM can lower the risk of rep attrition up to 50%.
Fact #6: SPM can help retain top sales reps and boost quota attainment 5%.
Fact #7: SPM can reduce territory planning time up to 75%.
So now what’s the takeaway? Companies can experience huge improvement in their team morale and financial successes as a direct result of implementing data-driven planning, execution, and optimization methods to drive sales performance. What does this mean for you? With SPM, you can be confident that your territories are optimized for maximized sales opportunity and your reps have the resources they need to hit their numbers.
World-class performance. Can you afford to miss out on that?
The stakes are certainly high. SPM can transform your sales team, your sales processes, and your sales performance. Don’t stop at ICM. Use automated SPM to reach your full sales potential and drive revenue growth. Gain predictive analytics and optimize sales processes. To learn more about how data intelligence can impact your sales future, download the complete Enterprise Guide to Sales Performance Management.