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THE VALUE OF COMMISSIONS AND INCENTIVES Shaping a Business Case for your Organization

The value of a commission solution

Elimination of overpayments

Running the enterprise commission calculation on spreadsheets is error-prone. Research is stating an average error rate of 3-5%. As sales people will barely (most likely never) complain about being paid too much, this 3-5% will always be a direct cost to you as a company.

3-5% of overall commission spend = savings potential

Administrational efficiencies

Maintaining spreadsheets contains a lot of manual work. Automating the whole process (from data entry, making adjustments to the calculation, distributing compensation plans and running the calculation to presenting the results in dashboards and creating individual reports reports) will free up the time of the admin users to think about commissions strategically.

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Increased performance

"How does my performance impact my payout?"

Once sales people have the transparency into how their deals are contributing to their payout already before the payment actually hits the bank account, they stop calculating that themselves. The on average 4 hours they spent every month can finally be used to sell again.

4 hours x 250 sales people = 1.000 hours per month. 1.000 hours = 5,75 FTEs

5,75 sales FTEs don't do anything else than calculating the commissions of sales people. Meaning you pay them for admin work and they don't actually spend time selling, so you miss out on their potential revenue.

Potential savings: 5,75 x average base salary of 50.000? = 287.500

Potential revenue gain: 5,75 x average revenue per sales rep of 10.000? = 57.500

Additionally, they understand how they can be more successful and see a path to a higher commission. They are now motivated to go the extra mile which will then lead to a higher revenue and improved KPIs for you as a company.

Higher retention

Understanding the impact of performance on the actual payout will motivate people and establish trust. People are less likely to leave the company. Additionally, the word spreads and it will be easier to attract sales talent in a competitive market.

Agility

"What can we do to boost sales in Q4? How can we empty our warehouse? How do we get rid of the product which is too much in stock or there is a successor model coming out soon?"

People can use the time they saved by automating the process to work out, how incentives will help addressing these business needs. The tool will help them to quickly introduce SPIFFs, multipliers, etc. to accommodate business needs and be ahead of the competition.

Quickly adapt your incentives to the business needs.

Governance & compliance

Every interaction, be it a login, reading of data, changing of data, etc. will be tracked by the system. You are always in charge of what happened. You can always understand what happened in the past when you get audited as you have one system of record and not a load of Excel Spreadsheets with different versions, etc.

You become GDPR compliant. Data is secure and private data is flagged and handled as such.

Can you even quantify the value of compliance overall and GDPR compliance?

HOW SAP CAN SUPPORT YOU

Find below a selection of short teaser videos that outline the capabilities and the value of SAPs Commission solution.

Customer stories

We have a certain experience across industries, be it for B2C and B2B use cases. See below a selection of customers that we work with and some of the benefits our customers achieved with SAP Commissions.

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We're happy to help you shape your business case and continue the commission transformation together with you. Let's build on the strong partnership between You and SAP!

Created By
Daniel Horvat
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