While you can debate what truly motivates sales reps—money, work-life balance or recognition to name a few contenders for the most motivational title —there is no debate over the fact that reps, like all of us, want to get paid what they’ve earned.
And chances are, they’ll work harder when they’re 100% confident that what they do impacts what commissions they’re paid. This is where commission tracking is a key advantage for motivating sales teams, particularly with commission tracking software. How you use commission tracking software makes all the difference in incentivizing your team to sell more.
When businesses use automated commission tracking tools, they can also avoid the pitfalls associated with spreadsheet-based systems such as costly error rates and late or incorrect payments. Many spreadsheet-based commission tracking systems have an error rate as high as 10%. That’s quite a number when you consider that the average sales organization invests 10% of their revenue into paying commissions.
Automated commission tracking software virtually eliminates errors and standardizes timely payments. Commission tracking software also bridges behavior and commission payments. Real-time data tracking helps reps see what commissions they’ve earned and will earn if they close potential business in their pipeline. In other words, commission tracking tools that work keep your reps from spending time tracking their own commissions. Instead, they’ll spend their more time doing what you want them to do—sell.
What’s more, commission tracking tools give reps in the field access to actionable commissions data that shows them exactly what they need to do to hit their goals. Instead of tracking their commission retroactively, they can watch it moment to moment and alter their behavior accordingly. Forward-thinking managers can use this data for tracking performance of their sales commission plans, and then making changes to motivate better sales behavior.
Armed with better insight into rep performance using commission tracking tools, managers are able to customize their plans to support particular strategic objectives within the company. When you integrate commission tracking tools, everybody wins in the new sales environment.
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