Sales compensation software vs Sales CRM: 5 major differences
Sales compensation software vs Sales CRM: 5 major differences
Sales compensation software vs Sales CRM
Many sales managers often get confused between the sales compensation software and CRM. As they lack clarity, they limit themselves with the features of CRM and do not open up the world of possibilities of sales compensation software.
When it comes to comparison, sales compensation software is a different beast that can provide some excellent leverage to the sales team and organization with a unique solution for sales. Let's dive more into the different worlds of sales commission and sales CRM and understand the differences and how they can help achieve business growth.
1) Leads vs. Sales Reps:
Sales CRM completely takes care of the lead generation process. It helps to-
Discover the best leads
Boost contextual engagement
Manage multiple pipelines
Drive deals to closure
Nurture leads and existing customers
The critical aspect in any sales CRM is how to keep the lead hunting, managing, and monitoring process agile, organized, and rewarding.
Sales compensation software offers different advantages.
In layman's language, the sales compensation software helps motivate the sales representatives by taking care of their incentives.
Most organizations depend solely on manual commission calculations and old-fashioned commission spreadsheets for commission tracking. In this system, there is a dearth of real-time information and a lack of coherence among HR and finance departments.
A robust sales compensation software helps organizations to automate the commission/incentive program, unite different stakeholders, move out of time and money-consuming manual monitoring and bring rigor to sales. It provides real-time information, roll-out accurate commissions, and help achieve business objectives
Collectively, all these factors contribute to-
Management of commissions
More clarity on individual, team, and territory performance
Sales performance management
Opportunities to make a better sales decision
2) Diverse Reports for Diverse Goals:
CRM software helps to track your customers' complete lifecycle—from a website visitor to a qualified lead and, ultimately, a loyal customer. CRM also helps with performance insight of different deal stages and customer relationship management.
Sales Compensation software reporting is more enriching in nature as they track individual performance. The compensation tracking platform provides compensation visibility which helps to understand team and individuals' performance, the fruitfulness of the strategy, and the need for the iteration of the plan.
CRM keeps the focus solely on leads and the compensation software helps with the compensation management and sales performance improvements.
The in-depth report of Commission Management Software helps manager, team lead and representatives to-
Monitor performance with real-time reports
Achieve business goal
Reduce costs with better planning
Make the right decision by checking on employee performance to make the right decisions
3) Priorities of each software:
One easier way to understand the fundamental difference between CRM software and sales compensation software is to underline their key priorities.
CRM is solely focusing on your target customers. Yes, many CRM software provides a list of additional features, but the core focus is always helping the organization connect with their customers wherever they are. CRM is a great tool to reach customers across multiple channels, manage the deal and measure the effectiveness of the customer communication.
Compensation software focuses on sales reps’ performance, and enables on-time, accurate compensation payout. The sole purpose of this tool is to take complete care of incentive compensation management and managing compensation processes.
A feature-enriched compensation software gives you the power to move your strategy and policy from tedious spreadsheets to a simple, secure, and configurable cloud program and bring agility to the process.
It helps to roll out, manage, and monitor different and complex compensation plans to leverage the employee's various motivation factors. In addition to that, it helps with faster budget planning, and achieve corporate goals. The key focus remains on reducing attrition with an improved salary administration and creating a robust program with absolute fairness for better service setup.
4) The BIGGER picture:
Both the software is packed with multiple features. Let us understand how they help businesses to do great things across the organization.
CRM makes customer management hassle-free. They reduce the pain of exploring, monitoring, and managing the tedious multiple deals and gives the organization a great chance to convert more leads, engage with customers, and grow their revenue.
Consistent use of the sales compensation software helps to build a culture of coaching among your teams. As the managers and leaders have access to real-time performance of the resources, they can track and identify the poor performers.
It paves the way for the dialogue between managers and reps about the rewards. The managers with all the performance insights can come forward and help the rep achieve success. It builds the culture of rewarding the behaviors and activities that are going to make a rep successful.
Reps get the coaching, managers hit their target, and the organization achieves outstanding results and top-notch productivity from their employees by rolling out flexible sales commissions with top-notch compensation management.
5) Get all the benefits of CRM into Sales Compensation Software:
Do you know an advanced sales compensation software helps you to integrate your CRM into the sales compensation software to manage everything in one place? A Compensation management tool is equivalent to any great performance management software with all the professional services, real-time data, detailed reports, personalized dashboards giving you all the benefits of commission.
It's a boon for the organization as the sales managers now will have all the options to nurture the customer relationship and manage the rep’s performance from one dashboard.
CRM and Sales Compensation Software are two different products developed for different tasks and activities. It helps organizations to achieve diverse goals. While the
CRM keeps the focus solely on leads and the compensation software helps with the compensation management and sales performance improvements. Hope by now you have got a better understanding of both the software and their diverse use-cases. If you have some questions on how sales compensation software or want to see it in action, please reach out. We would love to give you a tour of our sales compensation software.