Xactly Corporation, the leader in on-demand incentive compensation and sales performance management, today announced the availability of a new Aberdeen Group Study,“Sales Performance Management 2012: How the Best-in-Class Optimize the Front Line to Grow the Bottom Line.” Underwritten in part by Xactly, the report details how companies employ sales performance management processes, strategies and initiatives to achieve optimal performance in revenue attainment and overall sales productivity. A complimentary copy of the report can be downloaded from Xactly here.
The report interviewed 291 end-user organizations regarding their sales performance management (SPM) practices. The study found that 83 percent of the sales reps in top performing organizations achieved their annual quota, with only 22 percent of laggard companies doing so. Other key report findings included:
• Two-thirds of respondents noted higher sales margins and increased management visibility into sales force and channel performance as key SPM goals.
• Customized sales reporting was 53 percent more popular in best-of-class companies than laggard organizations, with the report adding that “providing sales employees with a • current-versus-goal dashboard that clearly shows their performance can improve sales results.”
• 56 percent of best-in-class companies also use a sales analytics or forecasting solution.
• 48 percent of best-in-class companies leverage SPM to drive repeatable sales rep behavior.
• Best in class companies are more likely to deploy advanced compensation practices that look at cross-territory crediting, global deal crediting and sales involving multiple team members, amongst other factors.
Best-in-class companies are 45 percent more likely to use special incentives, such as “SPIFFs,” to drive results.
“While many organizations are seeing a recovery from the economic downturn, the distribution and pace of progress are not being enjoyed by all companies, industries or geographies. Firms are seeking to capitalize on every available competitive edge, and the potential of higher achievements among the human capital of their sales team represents one of the most significant opportunities to grow revenue and market share by hitting quota more consistently,” noted Peter Ostrow, report author and Vice President & Research Group Director for the Aberdeen Group Customer Management research practice.
“As the report clearly shows, best-in-class organizations are leveraging more complex incentive structures and techniques – from cross team selling to SPIFFs – to drive improved sales rep behavior and business results,” said Chris Newton, Vice President of Marketing, Xactly Corporation. “Managing these kinds of multi-faceted sales performance management programs are really only achievable with a strong technology foundation that gives reps the real-time visibility they need to change their performance and management the ability to forecast, model, analyze and modify sales compensation programs to meet their dynamic business objectives.”
The report goes on to note that there is an opportunity for best-in-class companies to increase results by providing sales reps the ability to run “what-if income” scenarios and by linking sales performance with other key business processes and units, such as Human Resources.
Xactly Incent, the industry’s first 100-percent multi-tenant sales compensation management offering, allows customers to cost-effectively automate the sales compensation management process – from plan design and management, through to payment – to create a more motivated and efficient sales organization. With Xactly Incent and its related sales performance management modules, including analytics, modeling and territory management, among others, companies can create more effective compensation plans that improve sales behavior and drive better business results.
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About Xactly Corporation
Xactly Corporation (xactlycorp.com) is the market leader in on-demand sales compensation and sales performance management. The company’s SPM Suite of products enables sales and finance executives to design, implement, manage, audit and optimize sales compensation management programs easily and affordably. Xactly’s solutions automate the process of aggregating data from disparate systems into a secure, hosted repository and enable companies to leverage this business data, the lifeblood of sales performance management. Xactly helps companies improve operational performance, optimize sales effectiveness, proactively manage risk and compliance and maximize profits. The Xactly family of products is used by sales and finance executives, compensation analysts, sales operations and sales professionals across a variety of industries, ranging from SMBs to large enterprises. For more information, visit the website or call 1-866-GO-XACTLY (469-2285).
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