The goal of Sales Performance Management (SPM) is to influence sales reps behavior, getting them to push products and services that contribute to the organization’s overall goals. But all too often, organizations rely on a reactive SPM strategy that responds to events rather than proactively assessing and anticipating likely outcomes. The result is that decisions are often made too late, leading to missed opportunities.
It’s no surprise given today’s focus on the Digital Transformation that data is the key to creating a proactive SPM strategy. Real-time sales data collected by the organization’s Configure Price Quote (CPQ) solution can be fed into its SPM solution, providing instantaneous information and insights that administrators can use to make sales compensation decisions quickly to meet dynamic market conditions.
Here’s how an SPM and CPQ integrated solution could look like:
Imagine a sales rep working on a quote for a customer. They enter a discount into their CPQ software, and a price and their associated compensation are spit out. The rep can then alter the discount, payment package or other terms and see how the changes would affect compensation. They now have a full picture of how the quote affects the business as well as their compensation, giving managers an opportunity to influence and reinforce certain behaviors.
Most importantly, this influence is happening in real time. It’s not reactive or after the fact. Suggestions aren’t being put in front of the sales team at the end of the quarter or in weekly meetings. Sales reps have access to these valuable insights during their day to day as they’re putting together and crafting quotes.
Streamline Sales Process
Not only does SPM and CPQ integration give sales reps the visibility they need, it provides a level of flexibility in building quotes for customers. They’re able to see—in real time—how different packages could work, encouraging them to try out different options that may make more sense for them and the customer. It also streamlines the entire CPQ and compensation process, giving reps insight into their current compensation state and how they stack up against their quotas and goals.
Managers also benefit from the visibility, using the real-time quote information to forecast sales and track progress toward goals. Traditionally, forecasting would rely on signed contracts. Monitoring submitted quotes and taking them into account gives managers a more accurate picture of how the numbers will eventually fall. They can then calculate and forecast compensation obligations well in advance of the end of the quarter.
A Way Forward
The problem is that the CPQ and SPM solutions are often run by different teams, isolated from each other in silos. Getting them to work together requires cross-team visibility and the ability to see the big picture. Working with a systems integrator could help bridge the gap, providing the experience and expertise across disciplines to truly integrate the systems.
SPM software helps organizations streamline compensation and gives administrators the visibility they need to make strategic compensation decisions that work for the business, for the individual sales rep, and for the customer. Integrating CPQ data into SPM enables this capability in real time—moving organizations from reactive sales strategies toward a proactive strategy allows them to be agile and flexible and take advantage of business opportunities quickly before they are missed.
Ready to learn more?
Config Consultants is a systems implementer focused on creating Digital Transformations strategies. Our A5 methodology modernizes your lead to cash process and makes your supply chain lean by leveraging industry-leading packaged software, such as Salesforce, Oracle, Apttus, and Anaplan.
By Dave Farley, VP of CPQ and Michael David, Practice Director and Senior Solution Architect at Config Consultants