Benefits of SPM & ICM for Telecommunications
Complaints went down and motivation went up after our sales performance management software was implemented by a telecommunications firm.
- Our client is a telecommunications company with 400 salespeople.
- Their sales commission process was expensive and complex.
- The sales force complained about late and inaccurate compensation payments.
- Performio gave the sales team access to reports so they could see their deals and commission earned. This reduced complaints and increased motivation.
- Administration hours were reduced by more than one FTE (approximately $80,000 of salary costs).
“We have reduced the time we spend on managing commission calculations each month. Our sales force are more motivated as they can see their numbers tracking clearly against target.”
A leading player in the telecommunications industry presented us with their concerns:
- It was expensive to manage sales commissions (a team of four full-time administrators was required).
- It was difficult to obtain accurate data.
- The sales force had gripes about late and inaccurate commission payments.
Their sales team and commission process was complex because of:
- Different sales roles (acquisition, account managers, telesales) on 12 different commission plans.
- Existing reps changed roles and locations and new reps frequently joined the team.
- Multiple levels of management within the hierarchy.
- A complex territory structure with thousands of customers.
- Hundreds of thousands of data records to manage each month.
- Commission plans were changed frequently.
Initially, our client was skeptical that Performio would be able to manage the complexity of their sales incentive reporting. To address their concerns, we suggested a pilot program. The pilot provided gave our client a chance to test out the software without making a full financial commitment.
This was our approach to the pilot:
- Create a project team with our client.
- Explore and scope the project.
- Create a functional specification.
- Pilot real client data on Performio to test it could calculate commissions accurately.
- Consult with the project team and business to show results and identity and resolve any concerns.
- Launch Performio across the business.
- We provided salespeople with a web-based portal. Key data was presented in an easy-to-read sales dashboard showing their deals and commission earned.
- We created one central database as the repository for all information. This improved control of data and reduced administration time.
- Salespeople trusted the software because they could access reports detailing their sales data and status of their commission.
- Our client reduced admin time by more than one full-time equivalent (approximately $80,000 of salary costs).
Subsequent to the enterprise-wide rollout, the following actions have been taken:
- We have expanded the number and type of reports
- The costs for future modifications have been agreed to up-front so there are no surprises in relation to billing (or the total cost of maintaining Performio)
- We have appointed a dedicated account manager who provides our client with a high level of customer service and support.
“Our compensation plan has many complexities and we were concerned that this was going to blow out costs and prevent the software from functioning properly, Performio was able to take on and manage all complexities with no issues at all.”
See how Performio sales commission tracking software works
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