Making an effective sales commission plan which works under every possible circumstance is no easy task. There are many a number of aspects you need to take into consideration before making one and need to make sure that every aspect is well looked into and all the difficulties neutralized. Only then you can finally make an effective commission plan for your sales team with reference to which the reps would be offered their commission. A sales incentive management plan is thereby very important for the successful rewarding of incentives to the reps.
Reps are assigned a certain sales target, on the successful attainment of which they are accordingly given a performance bonus. They are supposed to meet this target within a specified period of time.
What are the two modes you can prefer for making a commission plan and calculating commissions?
There are two modes of how you can create a commission plan and do the necessary calculations of the commission statements. One of them is the old conventional method of making plans and calculating the statements through spreadsheets which involves manual operations. The other being an easy and the most effective way is also the most popular among the two, software, commission planning and calculations of commission statements through software simplified the entire process.
This software provides higher accuracy, complete transparency, and easy access to the data. It can be observed that the sales commission software has saved the teams huge amounts of time which they can now utilize to increase their productivity.
What are the major benefits that this software provides that spreadsheets lack?
There are a number of perks of using commission management software over the spreadsheets for making commission plans and calculating commission software. Let us discuss what the spreadsheets lacked behind and what this software has to offer.
Loopholes of the spreadsheets:
- Complexities were faced while calculating the commission statements on spreadsheets. Spreadsheets are considered a flexible and powerful tool for maintaining sales operations and management which is true to some extent. It is true in the case of small-scale businesses which have a limited number of reps. On the contrary, if a business has its branches spread all around it would certainly be difficult to calculate the commission statements on spreadsheets.
- Difficulties were faced in achieving the assigned goals. Spreadsheets are prone to errors and miscalculations, which need frequent rectifications. It took a lot of time while you make corrections to the calculations. The pay disputes occur every now and then and needed to be resolved and to do that, teams had to go back and check for errors in the calculations.
Perks of sales management software
- Softwares offer higher accuracy than spreadsheets ever could.
- They offer easy access to data.
- The software offers complete transparency in calculations.
- This software enhances productivity.
Using software means all the planning calculations would only demand a certain click and nothing more, thereby easing the entire process and saving a great deal of time.