Keep one eye on the finish line
Your sales commission expense is probably the most considerable variable expense on your commission budget. So, it makes sense that you will want to know how much that expense might be at the end of the year.
The CFO is likely to want a forecast at various times throughout the year. Performio provides the ability to forecast your commission expense at a company level as well as right down to the individual level.
Furthermore, you can forecast anything: any value, result, achievement %, etc. For example, the manager of the end of year sales club trip to Hawaii might want a forecast on the likely number of attendees based on current trends.
Setup Forecast Periods
Performio provides the ability to set up commission periods with a Status = “Forecast.” You can configure the Display Options so that only authorized users can access any data or reports within Periods tagged as “Forecast.”
Run Forecasts Based On Your Set Assumptions
Within your production environment (or sandbox if you license this environment for a simple monthly fee) you can document in the Task Manager a checklist of assumptions that you have baked into your forecast. For example, you might forecast the full year on the assumption that sales for the remaining months will be the same as per the last five months of the year. Or you might add in a seasonality table to ramp up / down sales according to a seasonality factor.
Run Calculations For All Future Periods With One Click
When you have all your assumptions loaded, you can directly execute the calculations for all remaining periods with one click. If your calculations usually take five minutes to run, then you can expect the forecast to take thirty minutes to run if you are halfway through the year. You can set the calculation to notify you via email on completion – go and get your favorite cold brew while the forecast plays out.
Get Rich Detail & Alert The Right Executives
You can drill down to a team or individual’s level to see a breakdown of the forecasted commission expense. These insights are handy for understanding the likely impact of accelerators on your commission expense towards the end of the year. You can set up specific reports for stakeholders based on what they need out of the forecast. For example, the VP of sales might want to know how many people are going to make “club” – so you could display the Leaderboard for the last month. The CFO just wants to know the $ payable in total per USA, APAC, and EMEA. Display the results as Big Numbers on a Dashboard for maximum transparency.
You can even provide email alerts to stakeholders on the availability of forecast reports. Or better still, do rule-based alerts so that critical people get the info they need to know. For example, you could send a warning to the CFO that commission expense exceeds budget if the forecast produces this outcome.