You’ve probably heard the phrase “time is money” before. There’s no point to waste time performing manual operations rather than putting them. The world is moving so fast in technology to increase efficiency, which means wasting time on using manual spreadsheets for calculating sales commissions, billing clients, payroll, and tracking expenses which isn’t accurate and takes more time to calculate, is not a mindful act. Most companies use spreadsheets for billing clients tracking expenses, handling payroll, and even commissions on sales.
Many technologies are made to make your life easy, like sales compensation software that automates your sales commission process and increases productivity. Here are some reasons why you should value your time and automate your sales commission calculation.
Time-saving
Manual calculation leaves room for human error and takes more time to calculate commission manually. Human error causes mistrust in the company, resulting in sales reps wasting time double-checking their numbers. No matter how complex your sales commission calculation is, sales commission software can make it easy and time efficient with a single click. It increases sales productivity and saves time with the incentive compensation management process. It also affects the organization’s growth by focusing on their other task, which adds more value to the company rather than manually maintaining spreadsheets.
Spending money on compensation management software will probably result in long-term financial savings. Many hours are lost due to commission calculations, numerous back-and-forth conversations with reps, and reps’ time away from selling. These hours could be used to complete essential tasks that generate revenue for the business.
Reduce error and increase accuracy
According to research, 88% of spreadsheets contain errors. Using excel to calculate and manage sales calculations is prone to errors which are also time and money-wasting. Automating your sales commission tracking makes your life easier by giving concrete and highly-accurate results. It gives your sales reps the confidence that their commissions are correct the first time. And if a modification to the compensation plan is necessary. Compensation plans can be modified (or completely redesigned) in minutes.
Motivate sales reps and increase trust
Tired of giving so much time to calculation but still getting inaccurate results, the salespeople mostly don’t trust the commission calculation process. Automating the calculation process, with access to all the data and transparent reporting of any calculation, allows the salespeople to develop trust in the process and increase their productivity. Commission administrators have a critical job with the annoying calculating commissions and tend to have high turnover. Sales compensation software allows you to automate and maintain all records on a single platform, which helps in motivating salespeople and boosting their performance.
Increase sales productivity
Sales representatives receive sales commissions from their companies to increase productivity. With comprehensive reports, valuable insights, and performance management options, sales commission software facilitates this. Sales compensation software increases productivity by handling your all-commission process with one click with accurate results. Manual sales commission tracking takes more time which means sales reps can’t focus on their sales growth which also decreases their productivity. Sales commission software efficiently removes human error from the process and enables sales teams to focus on selling activities.
A better approach to critical data and insights
Companies that use data and data analytics tools have a higher chance of upgrading their compensation plans and providing a better experience for their salespeople. All the data collected by your sales commission software provides an opportunity for further optimization of your sales process. Sales automating software compute commissions and offers information on your sales team and their process. Visibility into sales data assists organizations in identifying areas for development and improvement.
Transparency
Sales commission software is beneficial for organizations as it provides commission managers and sales managers more visibility into individual and team performance. They have access to both macro and micro levels of deal data. They have the same informational resources as the salespeople. Finance teams are not required to send out end-of-month commission statements because sales reps are aware of how much they have made.
Commissions are paid on time.
Manual systems for calculating sales commissions can take longer, and payments can frequently be late. This produces problems with reconciliation and dissatisfaction among sales representatives. But now you can quickly do all the calculations and payment process with the help of an automated sale commission system.
Constant Misunderstanding & Back-and-Forth Discussions
Calculations for sales commissions are not automated? Then, be prepared for negotiations! Lack of automation frequently causes endless back-and-forth conversations, bargaining, and confusion between sales and finance departments. When sales commission computations are left in the hands of humans, the sales representatives may feel that the results are biased and should be verified; otherwise, they may be persuaded to negotiate.
Improving the sales culture
An incentive system fosters healthy competition inside the organization. Sales representatives work hard to earn incentives and increase sales. The sales commission software offers leaderboards and in-depth analytics to measure performance, opening up the chances to establish oneself as a sales leader, prove one’s mettle, and spread knowledge within the company for comprehensive growth.
You get all the benefits of sales performance management software, which will help you lead your sales force more effectively, manage your customer relationships better, and encourage evidence-based decisions.
Conclusion
The list of benefits is never-ending. On-time payments make sales representatives happier, and happier sales representatives are 12% more productive at work. You deserve a solution that saves time and money since every dollar counts. So what are you waiting for? Increase your sales productivity and automate your sales by optimizing the sales incentive compensation management process. Your need to simplify the processes in your business by simplifying the task through technology.
The real purpose of this software is to encourage positive behaviors across your team, define expectations and criteria for compensation for all salespeople, and push performance to reach overall team and organizational goals.
