The last remaining manufacturer of VHS players, Funai Electric, has announced they will cease production at the end of this month. VHS was released in 1976, and although it would be eclipsed by DVD in 1995 Funai Electric still reported 750, 000 sales worldwide last year. There hasn’t been a movie released on VHS since 2007, and while some VHS tapes serve nostalgic purposes, they are soon to join Betamax in obsolete status.
What’s surprising about the above is that long after the rise of DVD, people continued to pursue VHS as a format, despite the innovations being made with not just DVD, but then HD DVD (RIP) and Blu-Ray, with streaming video surpassing them all as the new ‘normal’ for media consumption.
We see this all the time in the Sales Performance Management space. Despite major progress in the rise of automation software for compensation calculation many companies cling to their manual processes, either because of the investment they have made in a ‘home grown’ in-house solution, (think of your long recycled VHS library) or because the cost of upgrading is a hard sell for operational managers. Nevertheless, championing the status quo can derail your company’s revenue and sales targets.
In the case of VHS, the evolution of progress (and cessation of production) will force even the most reluctant consumers to embrace change. The quality advances we’ve made in digital media in the rise of new formats cannot be denied, much like the efficiency improvements offered by automation software. However, unlike VHS and DVDs, Sales Performance Management software pays for its investment cost by generating operational efficiencies and boosting revenue growth. Companies who automate their sales process see an increase in revenue of 1-3% and a decrease in administration by 90%. And when it comes to home grown solutions, while a misbehaving VHS player might chew up a tape, a poorly performing compensation system could cost your company a fortune – much more than the cost of replacing what you have. This article detailing HP’s current payment woes shows you just how expensive it can be to manage an overly complicated and dysfunctional payment system.
Excel spreadsheets and manual processes are the VHS tapes of Sales Performance Management - automating your compensation process is the step into the future your sales team needs to start performing in their own version High Definition. You’ll end shadow accounting, reduce overpayments, and provide your employees the transparency and real-time data they need to boost their sales and push your organization to Best-In-Class status. If you’re interested in learning more, contact us today!