Business Case For Automating Sales Commissions

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Three Pillars For Your Business Case

Sell more

You need to prove that salespeople will become more effective using this new tool, make a persuasive case for improving the top line. So many factors impact the top line, it’s difficult (impossible?) to isolate the impact of any single initiative on sales. Use a mix of rational and emotional factors. Rational information can be found on our client testimonials page and emotional factors would having decision makers realize that the in today’s connected world, sales commissions powered by spreadsheets  and emails makes absolutely zero sense.

Spend less

You need to make a strong case for cost savings. But don’t over shoot. A good incentive compensation solution should rip out more than 75% of the administration labour cost. In your case, that might not be a very big number. And if it’s 70% of 0.3 of FTE, you’re not going to realize that benefit on your cost centre. Think about this, payroll isn’t manage from a spreadsheet, so why should sales compensation be any different?

Minimize investment

This point is obvious, right? However, the usual story of the Enterprise software business case is one that overstates benefits and over commits on investment. The mathematical result equals a poor ROI when the benefits fall short and investment blows out. Unfortunately for you the people you are trying to persuade have probably signed off on more than a couple of these bad business cases in the past and haven’t forgotten the betrayal they felt by the vendor. The best thing you can do for your business case is to understate your upside with conservative estimates and work like hell to minimize the total solution cost.

How to sell sales commission software to C-Suite

Improve sales performance

Believe it or not, improving sales performance is not a dark art. Providing your sales force with immediate access and clear communication to sales performance metrics is a good way to dial up performance. But it is time consuming for the sales force to access this information from a spreadsheet held by one person or department. A good commission software program will provide a dashboard with all the performance data sales people need at the click of one button.

Reduced risks & human error

Relying on spreadsheets to complete complex sales commission calculations exposes the business to financial, HR and knowledge risks. Risk factors include financial leakage, disgruntled sales people and loss of knowledge.If the perceived risk of using spreadsheets is low in your organization then ask why spreadsheets aren’t used for other business-critical processes, such as payroll.

Improved business process

Every manager wants demonstrate their credentials by improving the business. It creates a sense of accomplishment, which they can document in their resume. Scalable, efficient and resilient systems create efficiency in the short-term and make a business a more attractive investment proposition long-term. Make your proposal an opportunity to create a win for your manager and executive team.

Reduce administration costs

Administration costs are the most obvious but perhaps least exciting component to your business case. Ask everyone who works on the sales commission process to keep a record of the hours they spend each month on crunching and re-crunching the numbers. It’s likely the saving in administration costs alone would be enough to justify the cost of a commission software program but it may not be enough to motivate senior executives to support the project.

Demo PerformanceCentre and see how it makes complex commission payments easy.

Get A New Perspective

We help organizations overcome their sales commission problems every day and would be more than happy to share our perspective with your business. Contact us and we can help you build a business case to automate sales commissions.

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