Authored by Mark Kemp, Chief Customer Officer at Performio
Just like Forrester assessed, ICM has evolved
As someone who’s spent over two decades in the sales performance management space, I’ve seen our industry evolve — from basic commission trackers, to comprehensive incentive compensation management (ICM) platforms, to modern platforms that have raised the bar in terms of usability and speed. ICM were once built for giant corporations, but innovation in the space unlocked these tools for smaller businesses, too. Over the years, I’ve been excited to see customers in new industries adopt ICM solutions with a broader set of requirements and use cases. Stronger workflow and analytics capabilities have allowed customers to realize more value from their investment in ICM.
We have also seen more analysts covering the space with a recent flurry of reports being published, chiefly the Forrester Wave™ for Sales Performance Management Solutions, Q1 2025. Their opinions on the relative strengths and weaknesses of ICM vendors stirred conversation and renewed focus on the primary pain faced by folks who have to pay incentive comp: the unique complexity of each business. Reputation and opinion matter — they exist for a reason — but reports like Forrester’s Wave and Gartner’s recent Marketscape help comp analysts frame their requirements in terms of what’s important to their business. These reports are a starting point in an industry that can mostly sound the same.
But this year, these reports also make me realize that this industry has reached a turning point. The vendor landscape has evolved beyond simply calculating payments accurately. Now, organizations need systems that adapt quickly to new pay metrics, scale to meet incentive structures that are increasingly varied across their business, and help sales teams know (and dispute) exactly how they are paid.
If you’re evaluating an ICM vendor this year — whether that’s benchmarking the one you have, or looking for something different — here’s my analysis on what’s changed, what functionality is crucial, and, of course, how Performio fits.
5 features that are now critical
Ease of use without losing flexibility or control
One of my main takeaways from the Forrester Wave™ report is that the balance between a usable system and one that has all of the up to date rules you need to pay people accurately is still a major challenge. Some solutions sacrifice the flexibility to add or change payment plan metrics quickly and require significant effort to update and maintain in the name of stability. Others offer lots of flexibility in how they take in data from HR, sales, and record keeping systems, but not enough control over how that data is categorized and how it’s used in payment calculations, making these tools even harder to maintain than the complex spreadsheets they were intended to replace.
A key differentiator in today’s environment is the ability to make plan updates independently within a clear data structure that doesn’t ruin reports and calculations down the line. We’ve worked hard to ensure that Performio isn’t a black box — it’s powerful enough to manage many data sources and large plan variation from team to team, but simple enough to be self-managed. In fact, one of our customers recently said that our platform “takes the complexity out of compensation.” That’s validation of our belief: usability and capability can — and should — coexist.
Agility to adapt, not just scale
Change is the rule for sales teams. Whether it’s new product launches, shifts in go-to-market motion, competitive pressure, or (let’s face it) tariffs and macro economy, agility is critical. The best ICM platforms make it easy to adjust — not just scale.
Performio was built for this. With almost 20 years in the market, we’ve developed a mature, battle-tested application that delivers the enterprise-grade capabilities today’s organizations demand — without the bloat or complexity of legacy systems. Our platform combines no-code configuration, modular plan components, and flexible data integrations, enabling customers to adjust comp plans quickly and confidently, without relying on engineering resources or waiting weeks for changes.
Unlike newer, unproven tools, Performio has the depth and stability to support complex use cases — at scale and with speed. Our product vision and roadmap are laser-focused on what matters most: helping customers stay agile, stay accurate, and stay ahead.
Total cost of ownership, not just subscription pricing
Today, it's important that incentive compensation management vendors shift away from the model of time intensive, bespoke implementations that can last over a year. Reducing the time and effort required to get customers live means that these projects are palatable for small sales operations teams, that you don't need a year of undivided attention to get a new compensation tool up and running. That shift is changing the total cost of ownership equation, and it’s something Performio has leaned into.
Many of our customers self-manage their programs post-implementation. Some even self-implement. That’s not just a product usability win, it’s a cost and efficiency win for our customers. One customer told us, “We budgeted for support hours we never ended up needing.” In an era where budgets are scrutinized more than ever, this is a huge advantage.
A true partner, not just a vendor
One of my proudest moments reading the Forrester Wave™ report was seeing this quote from a customer, who stated that working with Performio “feels like having one of our employees on the team.” That encapsulates how we operate.
We hire experienced ICM professionals into our Customer Success and Professional Services teams — people who’ve been comp admins, or have prior experience working with other ICM tools. We listen, we collaborate, and we proactively help our customers achieve their goals through best practices. That level of partnership often determines the success of a deployment more than any feature ever could. We provide support for your solution, not our software.
Future-proofing through focus
While some providers have shifted their focus into adjacent product areas — like territory and quota planning — Performio has chosen to double down on ICM. That’s not a lack of ambition; it’s a strategic decision to be best-in-class. We believe that a powerful, reliable, and intuitive ICM platform has outsized impact across sales performance. Our roadmap reflects this:from a next-gen Plan Builder, the most robust crediting module on the market to our Analytics Studio and measured AI enhancements, we’re investing where our customers need us most.
What great ICM should deliver
Having been on all sides of the table — as a vendor, a consultant, and even a buyer — I’ve developed a clear perspective on what great ICM should deliver:
- Trust and accuracy: The system must calculate commissions correctly and reliably, every time — trust in the numbers was everything. That principle guides everything we build.
- Maintainability and simplicity: If your team can’t make changes confidently, the software becomes a bottleneck. The best systems remove that friction and put control back in the hands of the business.
- Transparency and visibility: Reps should never be confused about how they got paid. Managers should be able to spot trends and opportunities. Our Analytics Studio helps customers drill into the “why” behind the numbers.
- Motivation and Alignment: Incentive comp is more than a calculator. It’s a lever for behavior. Great ICM systems reinforce strategy, reward the right actions, and inspire confidence.This isn’t just about functionality — it’s about long-term operational agility.
In my view, when your ICM platform enables these outcomes, you’re not just calculating comp — you’re shaping the culture.
Final thoughts: Planning for the future
Whether you’re re-evaluating your current system or making your first ICM investment, this decision will impact your team for years to come. It’s about more than just software — it’s about partnership, adaptability, and long-term success.
The Forrester Wave™ recognition was a proud moment for us, but what matters most is that it validated what we hear every day from our customers: that Performio delivers where it counts.
We’re not just a vendor. We’re builders, partners, and practitioners. We’ve helped teams go from chaos to clarity, from rigid to agile, and from reactive to strategic.
If you’re ready to take that next step, we’d love to talk. No pitch — just a conversation about how we can help you turn incentive compensation into a strategic advantage.
Let’s build the future of sales performance together.
— Mark Kemp, Chief Customer Officer at Performio
Download the full Forrester Wave™ for Sales Performance Management Solutions, Q1 2025 here.