Shadow accounting, overpayments, sales team churn, misalignment on sales goals. If these phrases sound familiar and give you an uneasy feeling, you’re in the right place.
Managing the technical aspects of commissions and quotas while maximizing your sales team’s capabilities is very difficult.
Canidium’s SAP SuccessFactors Incentive Management Account Executive, Jason Mishler, has seen firsthand how sales rep behavior can be revolutionized using Commissions. Jason has seen both sides: Organizations that consistently get calculations incorrect and organizations that meet and surpass the ability to compensate a sales team correctly. He is uniquely poised to understand how these platforms shape sales behavior, so we asked him to weigh in on the subject.
By the end of this article, you will have a clear idea of how SAP SuccessFactors Incentive Management can shape sales behavior, prevent incidental loss, and help you make informed predictive decisions that affect the bottom line.
How Does SAP SuccessFactors Incentive Management Shape Sales Behavior?
Sales performance management platforms play a crucial role in the success of any sales organization. To motivate and drive sales teams, many companies implement commission structures to reward and incentivize their sales representatives.
Transparent Compensation Plans
SAP SuccessFactors Incentive Management provides sales reps with clear visibility in their compensation plans. It outlines each sales objective's specific metrics, targets, and commission rates. This transparency fosters a sense of understanding and fairness among sales representatives, ensuring they know how their efforts directly impact their earnings. Knowing the potential rewards motivates sales reps to align their behavior with the desired outcomes.
Goal Clarity and Accountability
SAP SuccessFactors Incentive Management helps establish well-defined sales goals and objectives. Sales reps can easily access real-time performance dashboards that display their progress toward their targets. This visibility enhances goal clarity and creates a sense of accountability. Sales reps become more focused on achieving and exceeding their targets, as they can track their performance and identify areas for improvement. The platform constantly reminds them of their goals, influencing their behavior and driving them to perform at their best.
Incentive Alignment
SAP SuccessFactors Incentive Management enables companies to design commission structures that align with their business objectives. Sales reps are motivated to pursue activities and behaviors that align with these objectives. For example, if a company aims to increase revenue from high-margin products, the commission structure can offer higher rates for sales of those products. This incentive alignment directly shapes sales rep behavior, encouraging them to prioritize the desired products, services, or customer segments.
Timely and Accurate Payouts
One significant advantage of SAP SuccessFactors Incentive Management is its ability to automate commission calculations and ensure accurate and timely payouts. Sales reps appreciate receiving their commissions promptly and accurately, reflecting the company's commitment to recognizing their efforts. Timely payouts boost morale, reinforcing positive behavior and motivating sales reps to continue performing at a high level.
Performance Analytics and Insights
SAP SuccessFactors Incentive Management provides robust analytics and reporting capabilities, allowing sales reps to gain valuable insights into their performance. They can analyze their sales data, track their progress, and identify trends or patterns that can help optimize their strategies. By leveraging these insights, sales reps can adapt their behavior, focus on areas of improvement, and capitalize on opportunities. The platform acts as a performance management tool, empowering sales reps to make informed decisions to shape their behavior positively.
Gamification and Competition
SAP SuccessFactors Incentive Management can incorporate gamification elements into the commission process. Companies can introduce leaderboards, badges, or rewards to foster healthy competition among sales reps. By tapping into the competitive nature of sales professionals, SAP SuccessFactors Incentive Management motivates them to go the extra mile, exceed targets, and outperform their peers. This gamified approach shapes their behavior by instilling a drive for achievement and recognition.
Continuous Learning and Training
SAP SuccessFactors Incentive Management can integrate with learning management systems, allowing companies to provide training materials and resources directly within the platform. To enhance their knowledge and skills, sales reps can access educational content, such as product information, sales techniques, or market trends. By promoting continuous learning, SAP SuccessFactors Incentive Management shapes sales rep behavior by encouraging them to stay updated, adapt to changing market dynamics, and improve their performance.
Canidium’s favorite feature: Embedded Analytics
SAP SuccessFactors Incentive Management offers a powerful feature known as embedded analytics, which provides sales organizations with in-depth insights and data-driven intelligence.
By integrating analytics directly within the commission platform, sales teams can access comprehensive reports and visualizations that enable them to make informed decisions and optimize their performance.
Embedded analytics in SAP SuccessFactors Incentive Management allows sales reps to track their progress, analyze their sales data, and identify trends and patterns that can help drive their strategies. They can gain a holistic view of their performance, including commission calculations, revenue generated, and attainment of targets. These analytics empower sales reps to understand their strengths and weaknesses, identify areas for improvement, and take proactive steps to enhance their sales effectiveness.
Additionally, sales managers and executives can leverage embedded analytics to gain real-time visibility into the sales pipeline, track team performance, and make data-driven decisions to optimize sales operations. Overall, SAP SuccessFactors Incentive Management embedded analytics feature provides a valuable tool for sales organizations to drive performance, improve decision-making, and achieve their sales goals.
Are you ready to shape sales behavior and move your bottom line?
SAP SuccessFactors Incentive Management is a powerful tool for shaping sales rep behavior. By offering transparent compensation plans, promoting goal clarity and accountability, aligning incentives, ensuring timely payouts, providing performance analytics, leveraging gamification, and supporting continuous learning, the platform influences and motivates sales reps to align their behavior with the desired outcomes.
SAP SuccessFactors Incentive Management enhances sales performance, drives revenue growth, and contributes to the overall success of organizations - we know this because we’ve been implementing it since 2008. Ready to learn how to supercharge your sales organization? Reach out to us for a risk-free assessment.
