When it comes to including future-state modeling in a Sales Performance Management (SPM) solution, some businesses choose to opt out during the implementation process. The causes for this are varied, but mainly the business chooses to simply focus on traditional reporting rather than these benefits that allow them to look ahead. Those who make this choice are missing out of an important function that would allow their business to achieve their goals more effectively and accurately. Future-state modeling works with an SPM system to predict future outcomes related to compensation plans and incentives. Here are 2 reasons why future state modeling is a benefit for any sales business.
- What-if Modeling
What-if modeling involves creating scenarios for different compensation plans across different product lines or business units. You see the impact plan changes will have in the future and can factor in influences such as economic downturns and supply chain issues. This process is much faster and more accurate than trying to manually calculate using spreadsheets. This automated process is efficient and accurate, which is necessary when looking ahead, as it gives you time back to act on your predictions.
2. Sales Target Assessment
Sales target assessment gives power to your sales team. It allows your team to predict how much they stand to make on specific opportunities, what sales they need to make to reach their targets, and know how much commission they will earn for closing certain deals. Reps will know how to reach their targets, reduce time and risk due to the process being automated for them. It allows them to focus entirely on selling rather than calculating what they stand to make themselves.
Future planning naturally takes time and effort. If you are planning on making changes to your quotas, commissions, territories, or other metrics that define incentive comp, then you will have to bring pages of data to calculate the impact. If you are considering this capability, then you must have your data present. It must be complete, and accurate, or future-state modeling will be unable to accurately make predictions for you. If you are already ready to make use of this valuable capability to get the most ROI, you need to talk to experts so they can help you avoid issues and implement smoothly. You need a partner who has seen this all before, and can guide you through the process