Webinar Recording Available: The Business Case for On-Demand Sales Performance Management Analytics

CRM applications have revolutionized the selling process, organizing pre-sales data that reps and management need to manage the sales pipeline. But what about “post-sales” data? There is a ton of information produced at the time of sale that is effectively orphaned—information on what a customer actually bought, the final price, the commission paid, the territory where it was sold, etc. This is data that, if collected and cleansed, can be used to increase sales performance and maximize profits going forward.


In this Webinar, Xactly’s Karen Steele and THINKStrategies’ Jeff Kaplan will discuss how post-sales analytics can provide new and strategic insight into an organization’s selling patterns, commission spend, product performance, sales rep and team performance, and sales plan effectiveness. They will examine how post-sales data—traditionally scattered across a variety of disparate systems including ERP, HR, and Payroll—can be now be integrated and analyzed with an eye towards enhancing business strategies, changing sales rep behaviors, and super-charging sales organizations.

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Behavioral Science

The Roman historian Pliny the Elder wrote, “In Rome... the soldier’s pay was originally salt”. In the days before refrigeration, salt was widely used as a preservative and it was also believed to have healing powers, thus it became a currency of the realm.

Etymologically then, the word ‘salary’ comes from the Latin word for salt (‘sal’). Eventually this word salarium came to signify anything given in a stipend form or wages in exchange for labor.

We’ve discussed the idea of ‘non-cash rewards’ in the blog before, but salt was not exactly what I had in mind!

These days, we see forward-thinking companies using compensation strategically; which is to say, companies recognize the need to pinpoint incentives in order to modify, enhance and refine the behavior of their sales team – or any group in the company for whom an incentive may modify behavior.

I like to think of the finance and sales executives who modify and tweak their teams’ compensation plans as “behavioral scientists”; like any good scientist, they experiment with various inducements in order to observe the resulting behavior and thus determine whether the desired effect has taken place.

While there is plenty of art to setting comp plans that achieve the desired effect, there remains a heaping helping of science to it as well – in the sense that one needs to fine-tune plans over a period of time to see what’s working and what’s not.

This harkens back to the crucial piece of why we pay variable compensation in the first place: we expect it WILL change behavior. With this in mind, why would you ever want to do this without giving everyone involved real-time, web-based visibility? Without this level of dynamic access to your data across your entire organization, how will you know in a timely fashion if success has been achieved?

Or when small tweaks do need to be made, how can one feel comfortable with the possible outcome without modeling the possible changes using some specific assumptions? Tinkering blindly with an Excel-based compensation structure is a recipe for disaster.

With an on-demand compensation system, a company achieves a real, tangible competitive advantage. Several models can be quickly tested and refined without affecting any of your field personnel. When a SPIF program or new comp plans are ready to be launched, your company has the ability to move in a swift, nimble fashion.

People like to throw around the idea of ‘strategic advantages’ that can help give a company a leg up on its competition, but few strategic advantages have this ability to streamline your entire organization.

Let me illustrate what I mean with a real life example: Recently, a nationally-known auto parts retailer instituted these types of changes in their company. Faced with a struggling economy, a set of executives decided to look for innovative ways to boost their same-store sales. They settled on incenting their floor employees with variable compensation in order to sell more product; and they extended this also to their shop employees as a way to get them to open (and close) a higher number of service tickets per day. In addition, they gave their people web-based visibility into the compensation system so they could see, dynamically, what they were earning.

Prior to the launch of this new direction, several executives of the auto parts retailer expressed their concern that there was sure to be backlash from parts of the rank-and-file, because hourly wages for these in-store employees were cut nearly in half – though their potential for earnings became far higher than before. Management even expected a noticeable amount of attrition; surely hourly employees would quit in significant numbers if they were unwilling to be subjected to this new, unknown direction?

However, the result was a roaring success. Same-store sales jumped significantly and one region reported that their shop employees were getting through roughly four times the number of service tickets they had previously.

What originally had started as a pilot that might slowly be expanded around the country, immediately became fast-tracked for a wide-scale rollout.

This forward-thinking company is experiencing the benefits of conducting some behavioral science in the name of improving their business.

Throw on a white lab coat and join me as a part-time behavioral scientist – I think you’ll enjoy it.

“Science is a wonderful thing if one does not have to earn one's living at it.”
--Sir Humphry Davy (1778-1829)
Scientist, inventor, the pioneer of electrolysis, laid the groundwork for modern chemistry

What is Sales 2.0?

Karen Steele, Xactly's VP of Marketing, discusses how Sales 2.0 helps companies align people, process and technology to increase sales productivity.

Part III - Rewarding Behaviors: Automate Call Center Rewards

Automate Rewards to Further Drive Call Center Performance

The main reason why non-cash rewards are underutilized and undervalued in call centers is that managing an effective rewards program is a complex task – from creation to fulfillment to accounting and compliance. To simplify the process, organizations dumb-down their rewards programs, leading to less than optimal results. But there is another and better way to simplify the process and that is to automate it, end to end. That way the program can be as sophisticated and flexible as it needs to be. However, automation of rewards incentive programs hasn’t been an option until very recently.

As odd as it seems, there are still pockets in some companies that resist automation, relying instead on error-prone spreadsheets and time-consuming manual processes. Call centers, on the other hand, are enabled by automation, and the automation required for effectively implementing and managing rewards dovetails with the automation already in place for strategic CRM and performance management processes. Today, rewards program automation can bring to call centers the ability to:

• Tailor rewards programs to individuals, groups and teams. Freed from manual processes, non-cash rewards programs can be precisely tailored to any number of call center employees across any number of functions from outbound sales to customer service to full account management. Personalization is no longer an issue, and complexity is no longer a stumbling block.
• Align rewards to the success of multiple concurrent call center initiatives. Automation enables non-cash rewards programs to be easily designed and implemented for enhancing customer service (tied to call handling metrics), technical support (tied to case/issue resolution rate), teleprospecting (tied to qualified prospects), and general customer satisfaction, to cite a few examples.
• Offer the largest selection of value-oriented, tangible rewards. Automation enables you to create and maintain immense catalogs of rewards online – from millions of leading brand-merchandise items to tickets to entertainment and sporting events to travel, adventure and hotel packages and adventure options throughout the world.
• Integrate with CRM applications to streamline administration, provide visibility into attainment, drive recognition, and accelerate fulfillment. This benefit is huge. Just envision a call center agent’s action (an up-sell, cross-sell, etc.) being registered in the CRM system, and having that action automatically rewarded with the assigning of reward points. Then imagine that agent being able to view an online compensation statement to check how many points have been awarded (and/or redeemed) to date, all within the familiar CRM application. And then imagine the agent being able to check an online catalog of prizes to see what can be had in exchange for their accumulated points – again, all within the CRM application.
• Ensure compliance. Non-cash rewards incentive programs are considered compensation based on their cash value. The headaches this can cause in accounting have been a drag on the use of non-cash rewards in the past. Once the rewards management process is automated and not reliant on spreadsheets, the complete and accurate information required for withholding and reporting for income tax purposes is easily available to accounting departments, making non-cash rewards easy to track and audit as part of the overall compensation process.
  

Cash may be king, but its reign isn’t all encompassing when it comes to motivating behaviors in the call center, or anywhere else in business. When automated, aligned to strategic initiatives and integrated with CRM applications and your total compensation plan, non-cash rewards incentive programs can be just the thing to motivate and sustain exceptional behaviors.

Fortunately, the gloves are now off in regards to non-cash rewards—meaning you don’t have to rely on management-by-spreadsheets anymore. Parallel trends in enterprise mash-up technology, Web 2.0 standards, web services and on-demand software functionality have come together to enable all the automation, personalization, visibility and integration you need to create, deploy and track sophisticated and effective non-cash reward incentive programs. In doing so, and thus making room on the kingly throne for non-cash rewards, you greatly extend your mix of potential incentive options for optimizing call center performance and employee morale and loyalty.

Part II - Rewarding Behaviors: Motivating Call Center Staff Best Practices

Motivating Call Center Staff – Best Practices for Implementing Rewards Programs

Rewards have the potential to drive long-term strategic behaviors, increase call center productivity and combat personnel turnover. Non-cash rewards incentive programs in particular can be extremely compelling when wielded properly. They can be even cheaper than cash as a motivating tool (i.e., perceived vs. actual value). But it takes a consistent, programmatic approach to make non-cash rewards truly pay off on their full potential. And that takes the following best practices.

• Make it personal. You want the ability to personalize incentives by individual, skill level, staff type, job responsibility, etc. This is where non-cash rewards most clearly shine. A rewards point system on the front end, with points redeemable for a wide array of prizes (the wider the better) allow employees to self-personalize their program, honing in on the prizes that are most meaningful to them, whether it’s a riding lawn mower, designer purse, season tickets, or trip to Hawaii. Think outside traditional gift cards – they just fence you in.
• Make it obtainable. Many rewards programs fail because the people who need to be motivated the most often feel that attainment is out of their reach. Hence incremental attainment, with real-time visibility into where you stand, is the way to go. Dribbling out small cash payments can actually be de-motivating, but enabling employees to build up non-cash rewards points towards a goal or set of goals has just the opposite effect.
• Integrate with broader compensation programs/goals. Don’t let a rewards program exist in a vacuum – tie it to strategic objectives. If you are compensating variably for up-sell or cross-sell success, then use rewards to extend this strategy. It’s possible for a standalone rewards program to actually negate progress towards a strategic goal by drawing away agent efforts. So use rewards to reinforce, not dilute, your progress.
• Enable immediate selection and redemption of rewards. We live in a culture of immediate gratification, so why not leverage that to your advantage? Give employees visibility into the vast array of prizes they can win, and allow them the ability to redeem points whenever they wish. Let the Internet be your prize catalog and your redemption vehicle – it’s entirely possible.
• Make the process of winning rewards as important as the rewards themselves. You can come home with a raise in salary, but you’ll probably never hear the family say, “Great, now get out there and get another one tomorrow.” But you can come home with points towards non-cash rewards, and it’s a safe bet that someone in the family will encourage you to rack up more so they can “help” you redeem them. This is yet another aspect of the motivating power of non-cash prizes, and another reason to make the Internet your prize catalog.
  

A final and essential best practice for managing a successful rewards program is to automate the process. You can’t adequately apply any of the above best practices if you rely on spreadsheets and manual processes to track your program. Hence Part Three of this series focuses solely on how to automate while leveraging your company’s existing investment in CRM and performance management.

Non-Cash Rewards Can Help Your Company Weather the Economic Storm

Today human resources has the opportunity and the pressing need to get creative with pay-for-performance compensation. The Alexander Group, a sales-growth consulting firm, has forecast a modest 4-percent increase in incentive compensation pay for sales personnel this year. Companies, meanwhile, are getting serious about managing through the uncertain economy; buyers are watching expenditures; and sellers are looking for every bit of sales motivation they can muster. This dictates thinking outside the traditional incentive compensation “cash box” to counter the effects of the modest 4-percent raise with other rewards.

Non-cash rewards have proven effective in motivating employees to excel in all types of economies. And they have proven effective not just for the sales team, but other functions such as customer support, marketing and other specific corporate audiences. Non-cash rewards go where cash cannot in rewarding specific behaviors and creating a positive work environment. They provide greater agility anytime there’s a special opportunity such as rewarding up sell or cross sell, moving excess inventory in the channel, resolving customer-support cases, attracting prospects to marketing events, etc. The instant gratification factor of non-cash rewards also is attractive to many employees, particularly younger employees with little patience for annual or semiannual bonuses.

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Webinar Replay Now Available: SaaS + Sales Performance Management = Recession Resilience

We've just made the recording our recent webinar with Forrester available:
View: SaaS + Sales Performance Management = Recession Resilience

Note: Registration is Required

Overview:

With recession alarm bells going off all over the world, smart managers are looking for ways to make their businesses more recession resilient. Reducing your cost base, making sure you have operational flexibility, and boosting employee productivity are three well-proven tactics. In a recession, businesses need to invest in getting the most profit as possible out of their front-line employees.

In this educational Webinar, Xactly founder and CEO Christopher Cabrera will discuss how Sales Performance Management (SPM) solutions can boost performance and results and why companies should care in the best of times and during an economic slowdown.

ForresterLiz Herbert, Senior Analyst at Forrester will discuss how Software as a Service (SaaS), while not an option during the last recession, has established a track record over the past several years.

Key questions will be addressed:

• What are the key economic value drivers of the SaaS delivery model?
• How does Sales Performance Management impact employee and business productivity in a down economy?
• SaaS delivers lower costs and enhanced flexibility, but where does that leave employee and business productivity?
• How do SPM solutions provide value by helping to align sales behaviors to corporate objectives?
• Why is subscriber retention one of the key success metrics to determining success?

View: SaaS + Sales Performance Management = Recession Resilience