There are a huge number of transactions occurring within corporate infrastructure every day. Keeping track of all this money can be difficult for some firms, but management software and financial tools are at the ready to sort out the most complex of monetary juggling.
This is true of sales incentive management as well. When people perform well, they may be entitled to rewards based on that activity, and tabulating where funds are meant to go is all part of ensuring ongoing sales growth and productivity. At least, that has historically been the case. Recent months have shown some firms are doing away with their incentive programs while others continue to keep track of money, even when they have these new-age resources in place. Bridging the gap between incentive and performance management may require additional comprehension, not more technology.
Manufacturing Business Technology Magazine wrote that sales incentives have long been the main staple of driving better revenue. At the same time, though, these rewards can be an outlet for funding leaks to slip through. The source stated that a Gartner study showed about 1 to 2 percent of annual income is lost during handling and bookkeeping processes, despite modern technological interfaces. This may sound like a trivial amount to some organizations, but considering that many businesses bring in millions of dollar per year, losing $1 million is nothing to sneeze at.
Rising to new challenges
One of the main areas to inspect when trying to shore up monetary inconsistencies is incentive management software itself. Sometimes licensing fees and distribution systems are more costly than companies need to be paying. This could mean adjusting current contracts or finding new vendors in order to facilitate the most efficient and financially friendly solutions possible.
In industries where economic indicators may not be at their best, being able to save as much money as possible is a necessity. The Detroit News reported that the automotive industry is seeing a decline in revenue and turnover, meaning more sales incentives may be in order. This can promote additional sales and keep product moving through dealerships rather than languishing on lots. The source wrote that, in light of that interest, purchase incentives have been increased for customer-facing and internal participants alike. Companies like General Motors and Toyota Motor Corp are making a big push to enhance their incentive management programs in order to try and get more competitive in a stagnating market.