commission-tracking-software-brings-your-business-a-very-High-ROI

How commission tracking software brings your business a very High ROI

Do you use Commission management software to track and automate your incentive compensation programs? Or, are you still using the manual, excel-process to manage your sales commission plans?

If you have doubts and questions about the advantage of commission management solutions or wondering how it will give you ROI, this blog is for you.

We have identified the key areas where the commission tracking software gives an excellent ROI and helps you to improve your sales rep’s performance.

Save your organization from unnecessary commission overpayment:

Managing sales commission on excel increases the chances of commission errors which can mess up the entire incentive compensation plans inviting troubles.

Gartner estimates an average 3% – 8% error rate in overpayment related to incentive compensation pay disbursed using manual systems such as spreadsheets.
A commission management software offers commission automation facilities removing every single opportunity of wrong sales commission calculation. It tracks the individual sales rep’s performance, team’s performance and rolls out the correct payment at the right time.

No unnecessary errors. No wrong payments and money saved. Guaranteed peace of mind with a high ROI. Only if you are using a sales commission software

The deep impact on every department:

Do not get trapped in the thought that the sales commission software is only beneficial for the sales team. It has a strong and positive impact on every department of your organization. Let us dive deep by understanding what happens when there is no sales commission software-

Operations, Marketing, and Sales

Delays of new product and service rollouts due to inflexible incentive compensation plans
Incompetency of driving potentially beneficial compensation structure changes as the current system cannot easily accommodate change.

Difficulty getting real-time sales incentive analytical data and missing tons of opportunities to improve sales performance.
Failing to retain the best of sales talents by failing to meet their sales incentive compensation expectation
Inability to bring the flexible sales commission
Continuous dispute on the payment amounts due to the lack of automation and precise monitoring
Payment disputes are challenging to resolve and ends up slowing down everything

Finance and Accounting

Conventional, incompetent systems often result in overpayments.

Commission payments are sometimes late due to the current slow process.

Audit of the commission process is time-consuming and expensive

IT Support

Ad-hoc, unscientific changes to the compensation structure in manual process or inside an incompetent software demand considerable IT department support.

Expensive hardware and software costs.

Imagine removing all the above obstacles with just one commission tracking software and leveraging the power of automation, error-free commission payments, tons of sales insights, excellent sales performance management, and improving the ROI.

It’s possible with commission management software that reduces IT support, enables all the feature requirements and gives you all the convenience to help you in affordable commission management.

Gartner estimates an average 3% – 8% error rate in overpayment related to incentive compensation pay disbursed using manual systems such as spreadsheets.

Cost-effective solution:

In our last blog, we have extensively talked about the advantage of using a cloud-based compensation management solution.
In our extensive sales operation experience, we have observed how the legacy tools struggle to evolve, and managing a team to maintain the software becomes a significant obstacle. As they lack in features, they remain a big roadblock in affordable commission tracking and managing complex sales commissions.

Compensation planning software removes all the challenges and gives you the robustness of software that helps you improve your compensation management game. With new, up-to-date software, you can introduce new incentive compensation management practices catering to your sales employees’ needs and aspirations.

In addition to that, all the reports and sales analytics gives you all the support of sales performance management software helping you to take care of the sales process, achieve your business objectives better, and hit the corporate goals. Together it gives your sales team more reasons to improve their sales performance and an excellent opportunity for you to achieve a better ROI.

Retain the best talent and save additional hiring cost:

Inability to introduce the best incentive Program practices and incompetency of enabling the right compensation strategy and pay-decision structure led to poor compensation management and complexities in hiring and retention.

Here are some stats-

43% of sales reps say they would be willing to leave their organization for just a 10% salary increase (source).

56% of employees that leave their current job say inadequate pay was the motivating factor (source).

58% of people say that they would feel more engaged if leaders gave recognition to the job they were doing (source)

Experts estimate that sales personnel spend from 8 to 24 hours per month ensuring that their commission payments are accurate due to a distrust of the commission calculation. If you can give them confidence and earn their trust with a steady and on-time commission rollout, you can easily build up a fantastic sales team for excellent growth and ROI.

No more budget guessing:

This is massively important. Ineffective compensation management can feed you with wrong data or might provide no insights. You question the effectiveness of the sales compensation software and get involved in guesswork when it comes to competent commission software will help you take the guesswork out of payroll and budgeting.

Without current and reliable data, it’s tough to have an organized compensation structure. On top of that, new sales reps might have new compensation expectations. The sudden adjustments, ad-hoc changes can disrupt your incentive compensation management system without comprehensive data and insights. Guesswork will not yield great results.
Introducing sales compensation software will help you make data-driven decisions and improve compensation management planning. With better reporting, you will have complete control over your sales team and their incentive payout. The faster it gets completed, the better is your team’s performance, and the higher is your ROI.

These are the top advantages of using sales commission software that takes care of your ROI. However, the list does not end here as, like any product, the sales commission software opens up the world of possibilities in a new environment before the challenges and requirements. Have you used any sales commission software before? Has it given you ROI? We would love to know. Please share your experience with us at nishant.kumar@atmax.co.

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