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Trends in Incentive Compensation Management

In one of my earlier Incentive Commission Management in SAP CRM – a quick overview, I had provided an overview of the Incentive Commission Management functionality available in SAP CRM. Traditionally, Incentive Commission systems have always had to perform complex incentive calculations based on a lot of different factors. The main expectation from such systems was accuracy and efficiency with which the calculations were carried out. However, with time, the expectations from Incentive Commission systems have changed as well. Nowadays, more and more businesses are looking at solutions that not just provide incentive compensation calculation functionalities, but also modelling and analytical capabilities. Businesses are starting to integrate Quota and Territory management practices into their incentive compensation processes. In addition, functionalities enabling simulation, what-if analysis and historical analysis and forecasting are gaining popularity as part of the solution itself. These ‘Sales Compensation Management’ functionalities are gaining a lot of traction with increasing number of businesses running these solutions for a lot of tactical reasons.

Popular research analysts are predicting promising times ahead for the sales Incentive Compensation market; customers now have options for end to end Sales Compensation solutions and not just Incentive Compensation systems.

I would love to hear how your business looks at Sales Compensation solutions and specifically, Incentive Compensation –

  • What are the ‘must-have’ features for an Incentive Compensation system for your business?
  • How important are analytics and modelling?

  • What is the trade off between ease of use v/s support for complex incentive plan design?

  • Are hosted solutions more preferable as compared to on premise ones?

Any other thoughts on these topics are welcome too.

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