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Article

Title: Dangling the Carrot: Drive Your Sales Force to Profitability

Author: Beasty, Colin Article Type: Product Analysis
Source: Customer Relationship Management, v10 n1 p22(5) Publication Date: Jan 2006
  ISSN: 1529-8728
URL of Publication: http://www.destinationCRM.com

It is important for companies to choose and implement appropriate sales compensation tools in order to adequately motivate their sales forces. An effective and efficient managed incentive program keeps a firm's real objectives hidden from the people who should attain them. Compensation technology should be implemented to direct the behavior of sales people. When choosing sales compensation tools (SCT), companies must first decide whether to construct their own, purchase tools from outside vendors, or use them on an on-demand basis. When SCTs are designed and developed internally, sales force commissions and bonuses are generally handled via an Excel/Access database combination. These solutions are suitable for firms with 25 or fewer sales representatives. Purchasing applications from independent software vendors generally involves buying an SCT bundled with customer resource management (CRM) or enterprise resource planning (ERP) software. The best vendors are those that focus on enterprise incentive management (EIM), such as Callidus, Incentive Systems Inc., and Synygy. Such solutions are generally expensive, however. On-demand incentive tools have the potential to increase the market's growth by enhancing the functionality of EIM systems to companies that otherwise could not afford them. This is a developing market with few vendors, but Incentive Systems offers the service, as does NetSuite.

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Sales Force Automation

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