Author: Lizzy Wolff
Risk and incidental loss are silent killers in sales organizations. It can seem inevitable, or at least too complex to truly reign in.Beyond its primary goal of driving sales growth, Sales Performance Software plays a crucial role in reducing risk and minimizing incidental losses. The need for a solution to this problem is at the forefront of any sales leader’s mind.
Since 2008, Canidium has been implementing a variety of SPM software solutions that help our clients implement significant reductions in risk and incidental loss.
This article explores
- The capabilities SPM software brings to businesses
- How those capabilities reduce risk and incidental loss
- What type of organizations could benefit from SPM software
What are the capabilities of SPM software and how do they reduce risk and incidental loss?
SPM software has a lot to offer a sales-driven organization. Here are some of the most impactful tools SPM software has to offer and how they help.
Enhanced Sales Performance Tracking
SPM software provides real-time visibility into sales performance, allowing organizations to monitor individual and team-level sales activities comprehensively.
How it helps: By analyzing key performance indicators (KPIs) such as sales revenue, conversion rates, and average deal size, businesses can identify potential risks and areas for improvement. This proactive approach enables timely intervention and corrective action, minimizing the occurrence of incidental losses resulting from underperformance or missed opportunities.
Goal Setting and Incentive Alignment
One of the core features of SPM software is its ability to facilitate goal-setting and incentive alignment across the sales organization.
How it helps: By aligning sales targets with overall business objectives, organizations can ensure that their sales teams focus on the right priorities. This alignment significantly reduces the risk of wasted efforts and lost opportunities due to misaligned incentives.
SPM software enables the establishment of clear and measurable goals, promotes transparency, and motivates sales representatives to achieve desired outcomes while minimizing incidental losses.
Compensation Management and Commission Calculation
Sales compensation is a critical aspect of any sales organization, but managing it effectively can be complex and time-consuming. SPM software simplifies the process by automating commission calculations and streamlining compensation management.
How it helps: By accurately tracking sales performance and calculating commissions based on predefined rules and formulas, businesses can ensure fairness and eliminate errors or disputes that can lead to incidental losses.
Furthermore, prompt and accurate commission payouts motivate sales teams, reducing the risk of demotivation and turnover.
Territory and Quota Management
SPM software enables organizations to efficiently manage sales territories and quotas.
How it helps: By leveraging data analytics and historical performance trends, businesses can optimize territory assignments and set realistic sales targets. This ensures equitable distribution of opportunities among sales representatives and mitigates the risk of territory imbalances or underperformance.
Proper territory and quota management minimize the likelihood of incidental losses resulting from sales representatives being overwhelmed with unrealistic goals or lacking sufficient opportunities to meet their targets.
Sales Process Optimization
Effective sales processes are crucial for maximizing revenue generation and minimizing incidental losses. SPM software facilitates sales process optimization by providing insights into bottlenecks, inefficiencies, and areas for improvement.
How it helps: By streamlining workflows, automating manual tasks, and implementing best practices, businesses can reduce the risk of errors, delays, and lost deals. Improved sales processes enhance productivity, accelerate sales cycles, and minimize incidental losses resulting from process gaps or inefficiencies.
Wondering how much software implementation might cost? Read this article: The Top 4 Factors That Impact Implementation Pricing.
Companies that might need Sales Performance Management software
You might be asking, does my organization actually need an SPM solution?You might need SPM software if your company meets these two criteria:
- Your company has a sales team of approximately 120 payees or more.
- Your company’s salespeople have a variable component to their pay on top of their base salary.
Large enterprises most likely have some sort of “system” implemented already. In these cases, it is typical to look at the IT landscape and evaluate the effectiveness of the current solution.
Smaller companies that intend to scale to these conditions will often implement SPM software sooner rather than later. This is beneficial during the implementation process because there is less data to prepare and migrate.
How Will Implementing SPM Software Impact My Business's Bottom Line?
Sales performance management software serves as a powerful tool for businesses looking to improve their sales performance and mitigate risks.
By providing real-time visibility, facilitating goal setting, automating compensation management, optimizing territories and quotas, and streamlining sales processes, SPM software helps organizations reduce incidental losses and maximize revenue generation.
Embracing SPM software enables businesses to achieve greater sales effectiveness, make informed decisions, and drive sustainable growth in today's highly competitive marketplace.
At Canidium, we have been offering a solution to risk and incidental loss since 2008. You can probably imagine the worst-case-scenarios we’ve seen over the years. Clients across the board see vast, systemic improvement with these issues after implementing SPM software.
If this sounds good to you, reach out to us. In an initial risk-free consultation, we can assess your organization's needs and give you an idea of monetary and time investment. Fill out this form to find out how to reduce risk and incidental loss:
If you want to learn more about software implementation cost, check out this article about Top 3 Pain Points in Software Implementation.
Image: Unsplash