Commissions are one of the essential components of a salesperson's compensation package. They play a critical role in motivating the sales staff to achieve their goals and help the business bring in more revenue.
Commissions often drive innovation as salespersons devise newer ways to boost sales figures to earn more incentives. However, effective commission management is no walk in the park. It requires a lot of effort to ensure all the parties are content.
This is why many people turn to commission management platforms (CMPs). CMPs provide businesses with the tools for managing their incentives effectively while saving time, money, and effort.
1. Quota Planning and Quota Management
These essential tools help businesses stay on top of the sales pipeline. Setting and implementing the right quotas is all about striking the right balance. A good quota helps motivate the sales professional – set it too high, and they will feel it's impossible to achieve; set it too low, and they will get there without having to put in optimal efforts.
A CMP should allow the company to set different quotas for the disparate members of its sales team to ensure everyone feels motivated.
2. Cloud Collaboration and Mobility
Cloud collaboration and mobility are important features when choosing a commission management platform. Cloud collaboration allows you to work from anywhere, while cloud mobility allows you to access your data from anywhere.
You can access your data over your phone, tablet, or laptop, giving businesses the flexibility to adapt and progress even when on the move.
3. Territory Design and Management
Territory design and management is a core feature of any commission management platform. It's the process of designing territories or groups of customers based on their location or purchasing power.
There are many ways to design territories:
4. Centralized Data and Flexible Reporting
A centralized database is critical for a company’s sustained progress. A centralized data ecosystem standardizes data and allows businesses to analyze and report on it as needed.
In a CMP, this is a must-have feature. It should allow businesses to leverage real-time data and pull up different reports while providing flexibility with other parameters.
For instance, if you're looking for something specific, such as historical data on account balances or the number of accounts opened per month, this information can help drive decisions about which platform might be best for your needs — and whether one exists yet.
5. Scalability and Integrations
Any robust platform must be scalable and integrated with other technology. Technology keeps advancing at a breakneck speed, and if a platform fails to embrace the advantages of the latest cutting-edge tech, your company will be left behind.
The above features help a CMP remain effective and reap critical benefits such as:
While you may have a fair idea of the features needed for your business, it's always helpful to have an overview of what is out there for making an informed decision about which platform will suit your company.
Ensure your business' optimal growth through the implementation of a commission management platform with all the features and integrations needed to manage complex commission structures, create, and adjust plans, and that connects seamlessly with the systems your teams currently rely on.
Recently, Blitz was recognized for the second year as a Representative Vendor in its "Market Guide for Sales Performance Management", 2022.
Read more about why Gartner recognized our commission management platform in the following article.