If you don’t mind the time and trouble it takes to correct commission errors that inevitably occur when manually calculating monthly compensation, then you may never have to adopt an automated process.
The miscalculation tipping point
But if you’re like most companies, there will come a time—a miscalculation tipping point—when you say enough is enough.
It may be when a high-performing salesperson walks out the door because he or she doesn’t feel they can trust your commission calculation process. It may be when the time it takes to correct errors gets in the way of staff performing their primary tasks. It may be when management can’t make sound decisions because sales performance data is inaccurate.
Behind the 8-ball
When that time comes—and again, this may be hard to hear—you’re already behind the sales commission 8-ball. After all, switching from manual to automated calculations isn’t instantaneous.
You have to research sales commission software companies and products. There’s a shortlist to compile. Proposals to read. Demos to evaluate. Presentations to management to be made. And this is all before the time it takes to implement your selected solution.
So really, the time to consider switching to SPM software is long before you may absolutely need to.
Even software solutions sometimes need updating.
On the flip side, you may already have sales commission software. And you may think that all your problems are solved. However, are you sure it’s still the right solution for you and your business?
If it’s out of the box, do you need to add features to accommodate your incentive plan design? How easy—or more likely, how difficult—is that? If it’s a customized solution, then changes can be made. But do you have to approach your vendor every time you devise a new incentive plan? How easy—or more likely, how costly—is that?
Should you realize that your solution isn’t quite working the way you envisioned, then it also may be time for a switch.
When it’s time for a great SPM solution, consider Performio.
Performio’s sales performance, incentive compensation, and analytic tools accurately calculate and report sales commissions, no matter how complicated the compensation plan. It’s ready to go right out of the box, yet you can configure it to incorporate new incentive plans without outside help.
Salespeople receive timely, easy-to-read reports and leader-board rankings. Management quickly learns what incentives are working and which are not, as well as how salespeople are performing.
Miscalculations are mitigated, performance is elevated. A SaaS-based system, Performio has saved more than 500,000 administrative hours and calculated more than a billion dollars in commissions.