The retail industry faces challenges in employee motivation due to demand volatility, labor management, and a need for data-driven approaches. Solutions include Sales Performance Management (SPM) and Incentive Compensation Management (ICM Automation). These solutions increase productivity, improve employee motivation, and drive better business decisions. Kennect offers a fully automated ICM solution that integrates multiple data sources for a comprehensive view of sales performance.
We get it! Incentive Compensation Management for the Retail industry is a different ball game altogether. With digital transformation taking hold, consumers now have everything they need to know about a product or service right in front of them. With a few clicks here and there, the consumer can search, compare, and review any product or service without entering the store!
There is no doubt that Retail employees are feeling the brunt. Over the years, the question- ‘What does it take to be a successful sales rep in the retail industry?’ has been revised, revolutionized, and rebuilt to fit into the evolving business ecosystem. Unfortunately, most employees fail to keep up. Therefore, employee motivation is a critical bottleneck in the industry.
So what can leaders do? The answer is simple- data-driven approaches to sales strategy.
Nearly 80% of organizations are reinventing their business models by adopting technology that can help them use their data more effectively. While most leaders agree that digital transformation is necessary for this fast-paced environment, most report that they need help to keep up.
The challenges in the retail industry are manifold- Demand volatility, labor management, and hiring demands. While digital transformation is not a one-step process, incorporating Sales Performance Management (SPM) could be a significant step for sales leaders in retail. SPM solutions allow you to use your data more systematically and accurately, thereby gaining better insights, identifying risks and making bold decisions in real-time.
State-of-the-art ICM tools are becoming sought after in various industries. Automation tools will help you break the silos of traditional systems by collecting your data from multiple sources (spreadsheets or any other homegrown systems) and streamlining it into a single source of information. This macroscopic viewpoint makes your data usable, helping you create more accurate forecasts and make better business decisions.
With all the relevant data in one place, sales comp managers can analyze it more deeply and give holistic insights. Things that simply weren’t possible with static spreadsheets, like identifying problem areas in real-time, are possible with an automated system.
- Demand Volatility: The retail industry is characterized by unpredictable and volatile demand patterns, making it difficult for retail leaders to set sales targets and motivate their employees.
- Labor Management and Hiring Demands: Retail leaders face the challenge of managing a large and diverse workforce, especially during peak seasons. Hiring and training new employees also consume time and resources, reducing productivity.
- Lack of Data-Driven Approaches: With the fast-paced and dynamic nature of the industry, leaders need to have accurate and up-to-date information about their sales performance. However, many retail organizations still need to rely on updated methods, such as spreadsheets, which can lead to inaccuracies and poor decision-making.
- Sales Performance Management (SPM): SPM solutions can help retail leaders to use their data more effectively, providing them with real-time insights and enabling them to make bold decisions. SPM solutions can also integrate data from multiple sources, providing a comprehensive view of sales performance.
- Incentive Compensation Management (ICM) Automation: Automation tools can help retail leaders break the silos of legacy systems by collecting data from multiple sources and streamlining it into a single source of information. With all relevant data in one place, ICM managers can analyze it more deeply and gain holistic insights.
- Increased Productivity: By automating sales compensation plans and integrating data from multiple sources, retail leaders can gain a more accurate and comprehensive view of sales performance, leading to increased productivity.
- Improved Employee Motivation: With a data-driven approach to sales strategy, growth leaders can set clear and achievable sales targets, leading to improved employee motivation.
- Better Decision Making: With real-time insights and data-driven approaches, organizations can make better business decisions, reducing the risks associated with inaccurate or outdated information.