Medical Device Commission Overpayments

Global medical device company eliminates $100,000 in errors and cuts administrative costs with our incentive compensation management software.

Overview

  • Our client is a global medical devices company with an Australian-based sales team of 75 Sales Consultants, Product Specialists, Sales Associates, and Managers.
  • Sales commission was calculated via Excel spreadsheets and one full-time administrator was required to manage the process.
  • The company had a 10% error rate in calculating commissions, which meant $100,000 in overpayments had to be paid back by the sales team.
  • The sales team was disgruntled about the lack of transparent commission reports and having to pay back commission.

The Results

  • The company eliminated errors in calculating sales commissions and saved themselves $100,000.
  • Our client told us The sales team love it. They have accurate and detailed reporting at their fingertips and don’t have to worry about paying back commission overpayments.
  • Administration costs have been cut from one full-time equivalent to a few hours a month.
  • The executive team also has access to reports on what deals and which salespeople are earning commissions.

“The Sales Team love it. I highly recommend Performio to any company looking at streamlining their sales commissions & incentives calculations & sales reporting.”

Incentive Compensation Manager
Medical Devices Company

The Situation

A leading player in the medical industry presented us with their concerns as follows:

  • High administration costs. Commissions were calculated using Excel spread sheets, which required one full-time administrator to manage.
  • High error rate & dissatisfied sales team. Rapid growth in the sales team meant calculating sales commissions became more complicated, resulting in a 10 percent error rate. This meant the company overpaid the sales team $100,000 in commission, which salespeople had to pay back.
  • Lack of transparent communication. Commission data was kept in Excel spreadsheets, which meant salespeople could not review how their commissions were calculated.

Our Approach

Performio managed a rapid deployment of the software to address our client’s concerns.

This was our approach:

  1. Discovery – explore and understand how commissions were calculated, the pay structures in the business, job roles and configure business rules.
  2. Development – configure Performio to fit our client’s commission payment processes. Performio was integrated with Microsoft Dynamics so sales data could be automatically loaded overnight.
  3. Deployment – configure commission statements and dashboards so the sales team could review and understand how their commissions were calculated.

Enterprise-Wide Rollout

  • The enterprise-wide rollout started in late November and was complete pre-Christmas. Our client was able to use Performio to calculate commissions from February the following year.

The Results

  • The company eliminated errors in calculating sales commissions and saved themselves $100,000.
  • Our client told us “The sales team love it”. They have accurate and detailed reporting at their fingertips and don’t have to worry about paying back commission overpayments.
  • Administration costs have been cut from one full-time equivalent to a few hours a month.
  • The executive team also have access to reports on what deals and which sales people are earning commission.

“From start to finish, Performio has been excellent to work with. Their support is second to none.”

Incentive Compensation Manager
Medical Devices Company

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