Incentive Compensation Management: 5 ways to get Retail Stores back on track after the Covid-19

Currently, most companies and brands have chosen online platforms to generate online traffic and leads.  Unfortunately, the Covid19 pandemic has drastically affected the lifestyle of people across the globe since 2020. Companies, especially retail stores are facing downfall and failure due to the lack of sufficient sales rates.

In such a socio-economic scenario, the blog intends to guide us on the automation of the Incentive Compensation Management (ICM) to revive the retail stores back on track when the Covid19 Wave will fade away. Let us have a deep insight into the features and different ways of the Automated Incentive Compensation Management process.

Incentive Compensation Management & its Features

Incentive Compensation Management is an integral component in the current sales strategy. The functionalities are,

• Incentives always influence the employee to work harder and deliver their best performances. It serves as a stimulus that impacts the seller’s behavior and the interaction between the seller and the buyer.
• A powerful Incentive Compensation Management Plan can bring your sales representatives on the same business page, emphasizing the company goals.
• The planned implementation of incentives can result in higher business outcomes.
• A sound plan may lead to thorough data analysis

Automation of the Incentive Compensation Management benefits the companies through sales hikes. In automated Incentive Compensation Management, the company managers get more time to work with the sales managers to develop more effective plans.
Atmax developers use the Incentive Compensation Management software to develop and manage the plans with a focus on,

• Vertical management
• Complex calculations
• Report builder
• Easy integration
• User friendly interface

You can share your business plans, budgets, objectives, and quotas and you will be ready to roll.

In Incentive Compensation Management, salespeople know where they stand in terms of compensation. The compensation strategy

• Grows a healthy professional environment
• Increases the sales
• helps you improve your sales strategy even when your business organization or company is successful
• Influences the entire business positively

The following segment will show how the features of Automated Incentive Compensation will help the retail stores to get back on track after the pandemic wave is over. Retail stores have been the most vulnerable victims of this worldwide crisis and have undergone severe downfall. Our Atmax team is ready to help you with the automation of Incentive Compensation Management to regain success.

5 Ways Automated Incentive Compensation Management gets the Retail Stores back on Track.

1. Principles

Three types of principles that impact the incentive plan to target the business goals are

• Organizational principles

The management plan designers must review the opportunity level and targeted audience and serve the employees based on the requirement.

• Behavioral principles

In the context of behavioral principles, plan designers categorize different types of behavior and design their incentive plans accordingly. The accurate implementation of behaviors is needed for the retail stores to flourish again in the commercial ground.

• Motivational principles

These principles can assess the plan’s effectiveness and performance value and enable the administrators to take measures for the slightest of issues.

2. Data Forecast

Data forecast is one of the most vital features of Automated Incentive Compensation Management Plan. You will receive the information about the sales representative in a single system and a clear view of their previous performance. The rapid calculation process counts the incentives in no time. The data will allow you to understand,

• The improvement of their sales performance
• Their response to the new fields/territories
• Their previous experiences and records

The manual method is time-consuming enough and challenging to a great extent. The preserved data is easily accessible with the automated compensation management system with the click of a single button. A better forecast always leads to improved sales.

3. Cost Management

Finance is a powerful weapon to merge all your efforts to automate your Incentive Compensation Management. Most companies pay 10% of their annual revenues on incentives.

According to the surveys, 3-5% of the incentive cost is unnecessary payment that leads the company to undergo loss.

Role of Cost Management,

• Lack of Right Cost Management may harm the business’s bottom line to grant incentives to the wrong people
• Automated Incentive Compensation Management enables you to recognize and avoid overpayments
• An effective cost management system will help the retail stores to get the extra money back to the company fund.

According to the surveys, 3-5% of the incentive cost is unnecessary payment that leads the company to undergo loss.

4. Communication

Advantages and Disadvantages:

• Sales reps may remain quiet about the compensation errors done in their favor, but they immediately raise their voices when it comes to costing them their money.
• The communication gap between the managers and the sales in a company is one of the most underrated reasons for the business downfall.
• Clear communication comes in different formats like live presentations, videos, FAQ models, etc.
• Transparent and consistent interaction between the company managers and salespeople makes the sales rep easily understand the customer demand.
• Clear ongoing communication of the automated incentive compensation management is very beneficial for the retail companies to get them back to competition.

5. What-if Scenario Planning

What-if scenario planning is a distinctive and experimental feature of the Incentive Compensation Management system. This automated technical feature allows the companies to keep the incentive plans flexible and measurable and shift the business model fast depending on the changing business goals and fluctuating market situations. It enables the companies to,

• Mark the potential risks
• Design the probable business models
• Compare multiple ways simultaneously

What-if model prepares the designers to consider the consequences of future changes before, they can affect the business.

Retail stores must reconsider and upgrade their incentive plans and keep changing with the new strategies and acquisitions throughout the year.

Final Takeaways

The primary focus of the blog has been the ways how automated incentive compensation management can rejuvenate the retail stores in the business ground after the Covid19 crisis is over. The five pointers discussed above are the basic features to help the retail stores get back to the competition ground. If you are a retail store owner, these explanations will help you, indeed.

Connect with us to get further details about Incentive Compensation Management.