A lot of the conversations around incentive compensation management focus on the ROI of the solution and its effect on corporate strategy. There’s also quite a bit of talk lately on compliance, and ensuring the motivations and behaviors of the sales team are not operating outside of the law. However, an often overlooked aspect of implementing an ICM solution is the transparency and insight it gives you into your whole sales organization. This can have an enormous ‘trickle down’ effect on the teams that depend on sales to function, like HR, marketing, and customer service.
When we talk about data we use a lot of different vernacular – “big data”, “data warehouses”, “clean data”, “unstructured data”, and so on. The onslaught of data varieties can be almost as overwhelming as the sheer volume of data available. But what you need to know is that having access to the ‘right’ kind of data can be crucial when evaluating business decisions. Let’s assume you are a large organization with a couple hundred reps/payee’s and you sell multiple products. If you’re like our customers, you have already implemented a well-developed incentive compensation solution that automates your payouts and adheres to the highest standard of auditability and transparency. You’re also producing large volumes of clean and accurate data – the questions are: What do you do with it, and who can make use of it? Here are some helpful use cases:
Human Resources – the performance data within ICM can tell your HR team who the top performers are and what are their defining their characteristics. This information can be applied to fine-tuning seller profiles, such as ideal education levels, courses, training, and prior work experience. These factors can all be measured and weighted for use in hiring decisions.
Finance – ICM applications generate a rich source of data that link revenue streams, incentive plans, and cost of sale information together. This data can be mined to help shape future plan design, new product roll-out costs, and to forecast cash flows and accruals. Plans can also be analyzed to prove which plan features are effective versus those which are simply costly.
Marketing – by combining sales data, ICM data and product data an organization can learn if incentives have a role in driving demand for desired products. By breaking down the data by product, this information can help an organization adjust its go-to-market strategy by demonstrating the link between different seller profiles and the performance of their sales.
These are just a few of the opportunities available to you as an adopter of ICM technology – but in order to leverage this data you have to first collect it. If you are looking to build a business case for investing in an ICM solution reach out to Intangent today