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Innovation and Competition: SPM is Primed for Consumer Benefit

There has never been a better time to consider a Sales Performance Management (SPM) solution for your business. In recent years, the domain has experienced large amounts of growth, due to innovations and options available to consumers. Here are 3 reasons why now is the time to seriously consider an SPM solution:

  1. New Players, More Options

There has been an increase in the number of SPM vendors in recent years who are making good deals and breaking out into the space. The market is made up of two types of players. There are those who best cater to enterprise-level businesses and those who are primed to aid mid-market and SMB-level teams. Each of these vendors has different strengths that allow them to work best with different organizations, meaning there is a solution out there for any type of business.

2. Competition Breeding Innovation

The SPM space has seen several advancements in technology and offerings in recent years. Its common sales knowledge that competition is good for the consumer, and the SPM domain is no different. As vendors compete the leaders who innovate begin to pull ahead with breakthroughs in AI technology and usability, insights and control over territory and quota management, and others. Meaning that as vendors compete, the offerings for you get better and better.

3. It’s Still Growing

This growth and burst of innovation are not a one-off, but the emergence of a trend pointing towards a growing industry. Experts believe the global SPM market will reach $5.68 billion by the end of 2022 due to a compound annual growth rate (CAGR) of 19.3%. The SPM market is expected to reach $10.47 billion in 2026 at a CAGR of 16.5%. Meaning that this domain will continue to innovate, compete, and grow, increasing the potential rewards for your business if you make use of a system.

 

With all these offerings before you, it can seem daunting to cut through the chaos and not be deafened by all the competing offers. Which vendors are right for you? What offerings make sense for your objectives? In times of growth like these, it can be helpful to leverage the support of a consulting organization in the domain that can answer all these questions for you. Our industry experts with deep domain expertise can guide you in making the right choice for your needs.

To learn more about the SPM domain, its growth, and which solutions could be right for you, reach out to us.

 

Infographic Showing SPM Growth
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Importance of Investing in Your Compensation Strategy During a Downturn

There has been a lot of speculation across headlines that a possible recession or an economic downturn is on the way. As 2022 continues, inflation and its effects across industries seem ever-present. For the sales departments, staff retention continues to be a cause for concern. As companies become less able to spend due to high prices, challenges in selling may lead to your sales force leaving for other industries or lines of work. One of the worst things that can happen to your business is to lose the sales team you have spent time and effort investing in. If your company is left high and dry, a recession will hit you that much harder. How do you retain your sales team during these hard times?

Here are 4 tips to strengthen your sales strategies and compensation plans, to keep your sales force happy and productive regardless of the economic climate.

  1. Quota Adjustments- what are you rewarding?

Traditionally, quotas are based on performance against sales targets. But during times of inflation, recession, and downturns this can become a pitfall. Your reps may have trouble closing deals, through no fault of their own, as your clients are skittish to purchase goods and balk at inflated prices. If no one is buying and sales reps can’t meet their quotas, they may feel pushed to look for other opportunities. To create engagement and a sense of accomplishment, consider rewarding milestones other than closed deals such as contacts or connections made, and initial meetings with potential clients. This incentivizes reps to still track down prospective clients and create relationships that could lead to potential sales in the future.

2. Timing of Payments- how often do you reward your team?

Traditionally, incentive compensation is paid out about twice a year. During recessions, your reps are being hit too, worrying about their bills as the cost of products rise. With compensation payouts so far apart, they may get anxious waiting until their next payment.  Consider breaking up this schedule during a downturn. This allows your team to know what they are being paid sooner, so it doesn’t feel far off.  If they feel payment is closer on the horizon, they will be incentivized to remain with your business and keep selling.

3. Invest in Marketing- back up your sales team

Sellers need every advantage they can get the more difficult selling becomes. Marketing efforts can make a big difference here, creating brand recognition and equity. Getting your company’s foot in the door can be everything, ensuring that the first conversation goes smoothly will allow your sellers to have an easier time in meetings and build better rapport with prospective clients. The leads that marketing efforts can develop for your reps is crucial to provide enough meat for your sales teams to work with. It is critical that you build out a strong marketing effort before and during times of crisis

4. Where are you selling? Focus on key markets

Scouting beforehand on the business and industry can help you go from a shotgun to a sniper approach. Certain industries are hit harder by a recession, do you spend valuable time selling there where they may not bite? Do you focus on smaller companies that may be floundering or pay attention to more established ones more likely to weather the storm? Maximize your effort and productivity by not wasting time on prospects unlikely to result in a sale.  In times of difficulty direct sales reps to the most likely of deals.

                Making all these changes may seem daunting, especially in times when  you are already struggling. But these changes are necessary, you don’t want your team to leave you high and dry as selling becomes more difficult. History has shown that being able to pivot in periods of economic instability leads to success and supporting your organization with an SPM platform that allows you to pivot as needed. You gain increased flexibility in quotas and compensation plan management and are able to change them quickly and effectively. You gain visibility and accuracy in payments and can easily change their timings. You can act quickly on leads, using marketing analytics to determine plan changes and desired territories to target. It allows for fluid and intuitive target identification and rep management, allowing you to shift territories across your business.  Protect your sales team and business with the power and flexibility of an SPM solution during the next downturn or recession.

                To learn more about SPM and how it can be utilized to bolster sales efforts, reach out to our experts.

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3 Goals for Your Dashboards and Reports

While your Sales Performance Management (SPM) system is calculating and monitoring the performance of your employees, it provides you with Dashboards and Reports to show that performance. With them, you can track employee progress, and see areas that need improvement as well as areas of success. But how can you build out these dashboards and reports to be the most effective for your organization’s needs? There are three objectives to shoot for when designing your dashboards and reports, each will help bring clarity to your business and efficacy to your sales team.

  1. Providing Actionable and Relevant Insights

Don’t build your dashboards and reports to simply track everything. Instead, home in on the areas of your business that concern or excite you. If you are looking at everything that is happening all at once, the information you are looking for may get lost in the white noise. Instead, focus on what is relevant to your business. Identify your goals for your sales team, and track that which shows growth and areas that need improvement. Ensure that the insights provided are actionable, that something can be done about them when found

Before you design your dashboards and reports, you must first ask yourself what it is you are hoping to see. Ask the questions that you need answers for. If your dashboards and reports are giving you data that is irrelevant to the future of your company, or data that cannot be effectively acted upon, then you need to re-design them.

2. Are Intuitive and Visually Appealing

Your team is going to use these dashboards and reports every day, so it is integral that you design with user experience in mind. It is best to adhere to the “5-second rule,” which is, that it should take 5 seconds to understand the visual you are looking at. Ensure that they are intuitive and easy to read so that your insights can be more easily gleaned from them.

You can design your dashboards and reports to tell a story and also reflect company branding. These dashboards and reports are the stories of your employees’ progress towards goals and they should reflect that

3. Provide Transparency for Your Team

Just as you should receive accurate and actionable insights into your employee progress, so should they. By having access to their own progress, they will be better able to improve. They should also provide accurate information on sales incentives and payments for your team. It is important that your salespeople know what they are working towards.

By doing this, you foster greater trust in your organization. Your team will know what they need to do to grow, and they are clear on incentives and offers for them. Clarity is the best policy with sales teams, and with this clarity they will worry less about their current standing or the status of their comp plans, and do more of what they do best, sell.

SPM solutions already bring efficiency, acuity, and transparency to your sales organization, but with dashboards and reports you can bring these aspects to greater heights. Ensuring that your dashboards and reports provide you with pertinent information, are easy to read and understand, and provide greater transparency into your organization, will lead to a more effective sales team.

To learn more about how to design your dashboards and reports to bring out the best in your SPM system, reach out to us.

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4 Major Considerations for Driving SPM Requirements

The requirements development stage of implementation is the stage where a business defines what they need their new Sales Performance Management (SPM) system to do. Requirements not only define what the new system will be but also your business will be supported by the technology in the future moving forward. It is essentially creating a blueprint for your implementation team to follow as they build, configure, or install your new system.  There are 4 key considerations that should be kept in mind for this critical stage.

  1. Clearly defined end goals

There are two main directions to take your business when discussing requirements which are ‘lift and shift’ or ‘future state implementation’. Both directions help structure the direction of your requirements.

 ‘Lift and shift’ is simply put, doing your current system but better. Regardless of how your system is currently running, if there are processes you want to keep, your system can be upgraded or enhanced while adhering to current business processes.

If you are looking for an entirely new system based on the future state of the company, there is another suite of questions that must be asked. What changes are coming down the company pipeline? What new frameworks will be required? These goals must be defined in no uncertain terms, so your implementation can provide you a system that meets your end business goals.

2. A robust and field-tested requirements development process.

It is extremely important to have a comprehensive and proven process for developing requirements. This must include upfront planning and analysis. There should be standardized processes for documenting, reviewing, refining, and verification of the requirements. This standardized approach ensures the requirements team is on track for the quality and time required at this stage.

3. Availability of all critical information and data.

Your implementation needs to comprehensively understand your current compensation business area. What processes are manual? Which are off the books? Which sets of users interact with the system? How do they use it? Make this information readily available to them to help you define the future system. Ensure you have accurate, up-to-date, and complete compensation plan data the new system can support your specific business needs.

4. Stakeholder engagement through the entire process.

The people who are using the system have an in-depth understanding of what is needed from the new system. They understand what currently works best, what needs improvement, and the gaps that exist. It is critical to have subject matter experts and your main system stakeholders engaged at every step of the requirements defining process. As a result, the new system would be more effective in meeting your key business objectives. Additionally, it will be more easily adopted by your sales and incentive compensation management team.

                To learn more about implementations and how to prepare for the requirements stage, reach out and speak to our industry experts.

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System Adoption: The Criticality of Engaging Your Team

So you’ve made the smart decision to implement a new Sales Performance Management (SPM) solution, and now the time has come to introduce your employees to the system. Any new technology introduced into your company may experience some growing pains as your team adapts to it, and SPM may experience this as well. So how do you get your team to engage with the new software? After all, it’s one thing to acquire a solution, it’s one thing to implement, but if you can’t get your employees to use the solution, it will not be as impactful.

Sales reps love to sell, we all know this. When they clock in every day, that is what they are gunning for, what they want to do. They may not be as excited about all the administrative tasks that come with the job, and it may be difficult for them to pull their focus away from the goal of selling. So, when SPM solutions are implemented, it is not unheard of for reps to not want to take the time to learn how to use the new technology. They may worry about how much more work they must do. Because they are hesitant to learn it, they will be unable to effectively use it. This stems from a lack of understanding of the product and the benefits that it can bring them.

At the end of the day, an SPM solution is designed to help reps sell more and track those sales efficiently. What uninterested reps may not realize is that the solution is there for them and is designed to help them succeed. Engage your team with training sessions, work with them on how to use the system, and reward initiative that you see with those who use the system to its fullest. Show your team the benefits, how much time, effort, and energy SPM can save them. When you incentivize your team to work for themselves, they will achieve much greater results. System adoption is an important facet of an implementation, but by showing the benefits of an SPM solution, it can be much better addressed.

To learn more about SPM and system adoption, contact us today.

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3 compelling reasons why it’s time to invest in a Cloud-enabled SPM platform

Is your business ready to take the next big leap into the future? In today’s world of enterprise IT, there are many factors that a company must consider in order to decide whether a cloud infrastructure is the right fit.  There is no denying Cloud computing provides businesses like yours with several benefits.

Here are 3 big reasons why investing in a Cloud-enabled Sales Performance Management Platform (SPM) could be right for you.

1. Total Cost of Ownership (TCO)

One of the most significant benefits of cloud computing technology is offloading the cost of maintaining onsite servers. When businesses leverage the cloud, they can reduce TCO by cutting the costs of hiring on-site technical professionals, as well as the general cost of upkeep of the servers and the space that houses them.

Cloud technologies are engineered to provide control of the system configuration in the hands of the business users, reducing the time for system updates and achieving business goals.

Using a Cloud provider also reduces infrastructure waste. Most Cloud providers offer elastic solutions where organizations are charged based on usage and bandwidth.

2. Scalability and Agility

A Cloud solution provides cost-effective scalability to growing organizations to increase computational capacity, storage, and performance. The platform supports your business now and evolves for the future.

Cloud platforms also are agile and nimble in nature allowing you to pivot quickly adapting to the needs of a changing and growing organization.

3. Domain Ecosystem Integration

A Cloud-enabled SPM platform lends itself naturally to integrating with other platforms that are part of your domain ecosystem. Using Cloud capabilities your organization can rapidly integrate with the Sales, HR, and Finance enterprise applications providing a holistic and comprehensive -enterprise capability to streamline your business.

If you are in the market to upgrade your sales performance management solutions, a Cloud-enabled SPM platform is a compelling choice. Every growing company needs scalable and cost-effective infrastructure that can support, data transformation, and end-to-end visibility of all the data and processes in their dynamic ecosystems. Reach out to our experts today to learn which Cloud-enabled SPM platform would be right for you.

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Implementation: How to Prepare

After making the important step of deciding to implement an Incentive Compensation Management (ICM) system, what comes next? How best can you prepare your business, and what do you need to know to transition smoothly? There are three key areas that are focused on during an implementation, each with its own objectives.

Data

Your compensation data is the first step in preparing an ICM system. All the transactional data you have across spreadsheets, files, and the minds of your employees must be transferred to the new system. This first step often sees many hiccups, as data is altered off the books or in processes, and administrators may miss key data points. To ensure your data is correct before implementation, ensure that you speak to your employees and have a comprehensive understanding of how your data works.

Requirements

What will your system require? How will it help you achieve your business objectives? What expectations do your employees have of the system? Answer these questions to determine what your system will really need to accomplish. Know your teams activities and processes, and defining your requirements becomes simple. Also, how will your business change 5 years from now? Requirements should also consider the future state of your company. While written plans encompass the how to pay, it often misses the process that the team goes through.  Don’t just rely on written documentation, talk to your team and understand what they really do. 

Testing

The final stage is where it all comes together. Here you will test your system to see if it is returning on the requirements you set in the previous step. User experience testing is the best form of this, as the employees who will use the system most often will spend time with it, getting to know how it works and how it will help them. It is best to test in a realistic environment.. Instead of using parallel testing as UAT, use a controlled set of data and expectations to see how your employees engage with the system, and how it can increase their productivity. Parallel testing serves it purpose, but can make actual UAT testing to cumbersome to manage. 

An ICM implementation may seem daunting, but with the help of an expert consulting organization like the Blue Horizons Group, it becomes much more manageable. With our years of ICM experience, we can easily guide you through these three steps and help you see tangible results with your team.

Woman Depressed Over Inflation

How to Combat Inflation in the Sales Environment

Inflation is on the rise in the US, and we are all seeing the price of goods and services increase. During inflation, your costs are going up, and naturally, you will have to offset increased costs with increased price of your own products and services. This may negatively influence your customer base. At this time, it would be critical to retain and better compensate your sales reps in an inflated economy.  So how do you protect your bottom line? Some ideas that can work are as follows:

  1. Basing comp plans on margins versus revenue

In times of inflation, your sales reps may be forced to offer discounts in order to get the sale across the finish line. If you pay your salespeople on the margins, they will work harder to keep that margin and will drive investment in your business. Giving them this greater transparency into what your margins are will create greater trust for your organization.

2. Bonus structure and other incentives

Salespeople love recognition, competition, and being paid for performance. They engage with contests and awards, and it gets them invested in your company. In this volatile market, it is critical to invest in your people. Consider non-cash incentives, rewards, and recognition when adjusting your comp plans.

3. Utilizing an agile sales comp management system

Having a system ready from the start that is flexible for changes will allow you to pivot to protect your business needs in changing times. Legacy homegrown systems are rigid and require a lot of time and effort to implement change. Instead of being held hostage by your system in times of crisis, invest in a modern, flexible solution that can change with your needs.

Smart organizations use all the help they can get in being prepared to navigate uncertain times. They find strategies to pivot and adapt that not only help them survive but also thrive in such times. A sales performance management (SPM) system can provide a holistic and cohesive solution to develop and manage these strategies for change.

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Fostering an Engaged and Productive Sales Team

The modern business environment is rapidly changing, and the relationship between sellers and sales administrators is shifting with it. The growing uncertainty about the future following the pandemic as well as the shift to a remote work culture has drastically reduced seller engagement. How can we increase seller motivation and productivity in these unprecedented times?

Providing lucrative incentives can seem like the logical solution. But oftentimes throwing money at a problem is simply not enough. Incentives that are personal, trackable, and realistic will help your sellers sell more. Setting tangible daily, monthly, and yearly goals that your sellers perceive as achievable will fosters a sense of accomplishment thereby increasing engagement. This can be further enhanced by providing recognition for hitting incremental targets as they progress towards their goals. Designing and streamlining territory and quota plans specifically for each seller, can make them feel valued and give them a sense of ownership of the business.
Using only monetary incentives runs the risk of feeling transactional. However, by using other more holistic strategies to appeal to personal direction, a sense of accomplishment, ownership, and recognition, you can start to create an engaged and productive sales force.

For a sales leader, this creates an additional burden to design and execute a holistic strategy to nurture their sales teams. This burden can be alleviated with a Sales Performance Management (SPM) solution that is aligned with these strategic goals. In addition to housing enticing and flexible compensation plans, an SPM solution provides effective territory and quota management tools enabling you to align your sales talent to territories effectively. They provide the much-needed insight to track goals, targets, and other measurable achievements. This insight can help you reward and showcase your people appropriately.
Your sales team is your most valuable resource and by leveraging SPM solutions you can make them feel valued and encouraged to show up as their best, most productive self every day.

To learn more about SPM solutions and how they can help to engage your sales team, reach out to our experts.

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Managed Services: What’s the Right Fit?

Incentive Compensation Management (ICM) Solutions provide a powerful tool to improve the accuracy, timeliness, and transparency of incentive payments. However, in a fast-paced world with a constantly changing market landscape – organizations need to focus on their sales and compensation strategies instead of their administration. The logical solution is to invest in ICM Managed Services. Managed service is a solution where some or all our company’s ICM support needs are outsourced to an expert managed services partner. It’s a popular choice for growing businesses or businesses with complex ICM frameworks that become inefficient to support in-house. Managed services help to manage costs, improve scalability, provide expertise, and reduce risk. The challenge then quickly becomes determining which model of managed services is right for you based on your business needs. 

Does your ICM team need support during the crunch times such as annual planning or calendar close, that happen in a six to eight-week window? Instead of overburdening your administrators, consider an elastic workforce that can be utilized as support. This managed service support model is scalable to your needs and can be extended to provide year-round support, enabling your key staff to focus on higher priority tasks.  This scalable elastic workforce can be Technical (support with plan and other system updates) or Operational (support with administrative tasks). If your resource strategy is primarily focused on growing your business and does not want to incur the administrative burdens of developing an ICM team in-house, a more comprehensive support model that provides end-to-end ICM services from annual plan design to full-year incentive compensation administration may be right for you.  

Company size, bandwidth, or industry should not be barriers to reaping the benefits of an ICM solution. Based on your organization’s strategy and business needs, there is a bespoke managed services model that can provide the level of support. The key is to partner with an ICM services provider that can help you separate the signal from the noise and help identify the solution that is right for you.  

At Blue Horizon’s Group, we provide the exact opposite of the “one size fits all” approach to managed services. Our managed services packages are based on Seasonal, Year-Round, and Turnkey models. Each of them can be tailored to your specific needs. Whether it is enterprise-level support or just an extra pair of hands to get you over the busy weeks, we have the support you need.