Sales transactions and compensation reveal a great deal about how well your organization is operating. Accurately predicting, calculating and tracking incentive based compensation can be vital to your success. Commission software can help improve sales productivity by centralizing and automating your incentive compensation plan. Read on to find out more about your options and how to find the right program for your business.
Commission tracking can be a complex chore. If you are tracking multiple plans with a variety of commission rates, splits, bonuses, caps, overrides, and guaranteed payments, you are already aware of this fact. Many organizations start off by using spreadsheets or Word documents. These manual processes tend to be error prone, though. Also, you can quickly find yourself unable to easily produce reports.
Sales managers rarely have time on their side. For most sales executives, measurements of key performance indicators are only available after the close of the month or quarter. Waiting for sales compensation calculations means reacting to dated data. It also introduces delays in terms of making adjustments. That can lead to a less satisfied sales force.
The solution for companies like yours is automation of commission tracking with task specific software. Avoiding error prone and time intensive manual methods will not only yield better results, but cut overhead time. Time saved for your sales force means more time for revenue generating activities. The more complex your commission plan, the larger the time savings can be.
Commission tracking modules help greatly with performance tracking. Compensation data is a rich resource of key performance indicators. Access to accurate and easily visualized commission tracking data can help you make better decisions at both the individual and corporate level.
You can calculate commission compensation based on various performance variables as well as manage key dates in your company’s sales or compensation cycle. It will also help manage regulatory reporting requirements related to compensation and bonuses.
Great business leaders recognize that compensation is a sales executive’s best strategic tool to motivate specific selling behaviors. With capable software you can configure commissions and incentives on the basis of value, number of units, products, channel, time period, location and campaign. Commissions can be split between multiple payees while allowing for manual overrides. Draws and adjustments are also much easier to handle with a commission tracking application. Some solutions will provide menu based calculations. Most allow you to create custom calculations.
Transparency leads to accuracy. There’s few places transparency is more important to employee satisfaction than when it comes to their pay. Many compensation issues arise when employees don’t fully understand compensation rules. Are your commissions based on gross sale revenue, or gross sale revenue minus discounts, returns, taxes, etc? Commission tracking software not only handles calculations, but can be used to publish clear reports for staff members. For many employees, a common point of confusion is when sales revenue is booked. Accessible reports are an easy way to eliminate this confusion. Is your revenue booked when the purchase order is raised, when payment is received, when delivery is complete, or when the grace period for returns is over? Use your software as a central repository that clearly defines these rules.
Finding the right system to track your commissions and plan for future sales can seem like a difficult task. But it doesn’t have to be. Our free software search service will help save you time finding the right program for your organization. Get started today!