If you’re in the market for a new sales performance management (SPM) application, you’re not alone. With 10% market growth in 2015 according to the Gartner Magic Quadrant for Sales Performance Management, SPM is becoming a rising priority among companies of all sizes and industries. This demand for SPM is driven primarily by a handful of challenges stemming from outdated sales processes rooted in guesswork. Whether the issue is the structuring of territories, quota attainment levels, or compensation plans, sales organizations are realizing that their decisions are only as good as their information—and this information needs to be based on solid data, not intuition. Intuition and guesswork, which may have worked in a company’s early stages, is outgrown as sales organizations begin to scale and increase in complexity.
ReachLocal’s SPM Buying Journey
According to Gartner, the predominant driver of the SPM market is incentive compensation. With over 70% of Gartner’s SPM inquiries mentioning incentive compensation, it’s clear that this is a hot topic among IT buyers. ReachLocal, a company specializing in internet marketing, search engine optimization, and search engine marketing products in more than a dozen countries, also identified this issue within its organization. “The challenge that we’ve had is the visibility and the agility to stand up new commission plans, to be able to report on those plans, and to be able to measure the effects of those plans with our sales force,” says Richard Kadeg, vice president of financial systems at ReachLocal, an Oracle customer.
Sound familiar? If you’ve already begun to identify and articulate your concerns regarding sales performance, you’re heading in the right direction. But identifying the challenge is only the first step in finding a SPM solution that’s right for your company.
Many organizations start their SPM selection process by referencing the Gartner Magic Quadrant for Sales Performance Management. With Gartner and other third-party advisory services, companies can narrow down their software choices by compiling a short list of vendors to consider. But, as with any purchasing decision, the choice usually boils down to the specific set of capabilities that ultimately will determine which vendor is the best fit for your organization. This is where it becomes critical to involve your company’s key stakeholders in the decision-making process—it’s essential that you consider the differences in priorities and expectations that each representative has.
Watch Our Screencast, Transforming Your Business with Sales Performance Management
Selecting the right SPM provider also shouldn’t be made based on intuition. That’s why we’ve teamed up with ReachLocal and Gartner for an on-demand screencast to equip you with the information you need to confidently make a decision. Tad Travis, research director at Gartner, shares exclusive insights into the latest Magic Quadrant for Sales Performance Management report, discusses key trends in the SPM software market, and provides recommendations on how to choose the right SPM tools. Oracle customer Richard Kadeg, vice president of financial systems at ReachLocal, offers insight into his buying experience and how ReachLocal selected the SPM solution that best fit its needs.
If you’re ready to begin your SPM buying journey, or simply want some perspective on where to start, get some popcorn, grab a colleague, and register to watch Transforming Your Business with Sales Performance Management.