Incentive Compensation Management for IT Industry
Sales compensation is more complex for SaaS revenue companies. It is crucial to retain customers for years and sales reps need real-time data at their fingertips on all their devices.
Components of sales compensation
- ♦Annualized Recurring Revenue: SaaS companies estimate commission rates based on the ARR of yearly subscriptions.
- ♦Contract length: Longer contract lengths have lower churn rates making them high-value for the reps.
- ♦Service Revenue: Most companies use service revenue as the basic measurement to start their incentive compensation.
- ♦Frequent plan changes: Sudden plan changes in response to shifting bottom line can confuse the sales reps making it hard to keep track.
- ♦Cross-functional sales: Cross-functional selling leads to complex and varied sales attribution processes across products and geographies.
- ♦Commission rates based on the type of sale: The type and difficulty of the sale determine commission rates for reps. It is often confusing to track commissions based on a combination of new business, renewals, and add-on sales.
Automate your sales commission calculations
Calculating sales commissions manually will produce errors that take time, leading to payment delays. The process is also prone to over and underpayments which wastes more time in reconciliation. The result is you have an operations team overworking to meet deadlines, and the sales reps waste time double-checking their fair share.
With Kennect, you can easily automate all your sales commission calculations to ensure your sales reps are paid on time. With automation, you can free up effort and time that can be focused on more value-added tasks
Boost engagement among your sales reps through clear commission plans
Vagueness is one of the factors that hinder productivity. Clear commission plans have many advantages. It keeps your sales reps focused with clear goals and metrics. Clear commission plans also give deeper insight into bottlenecks and weaknesses and help develop skills with clear tasks. The result is that your sales reps have a strong sense of direction and are highly engaged.
With Kennect’s intuitive dashboard accessible on all devices, your sales reps and managers have a clear perspective. Do you have to send out new compensation plans? Or make changes mid-term to scale with the business without having to confuse your sales reps? We have you covered!
Derive actionable insights from sales data
Sales traditionally have been an intuition-driven task. Outstanding sales reps have honed their sales skills over the years. What if the arduous learning curve can be shortened with data analytics to boost sales performance? That is precisely what Kennect enables you to do with the daily volumes of data you generate.
With Kennect seamlessly tapping into real-time data, your sales reps and managers have a live view of sales performance. Gain better insights with visualization on the dash and look into sales and incentive data and any level of magnification you choose.
Model Advanced Scenarios
Leverage historical and real-time data to model complex scenarios to assess the effects of changes to compensation plans with real-time calculations. Use the “what-if” scenarios to smartly optimize your incentive plans to keep up with market fluctuations and changing business objectives.
Why Choose Kennect?
With Kennect handling your sales compensation, you eliminate calculation errors, stay on track with your commission runs and have all the stakeholders on the same page.