5 Indicators that it’s Time to Switch to a Sales Commission Software
Every business owner who’s keen on the growth of their company should be concerned when their sales begin to plateau. Usually, this can be caused by various factors such as employee burnout and stiff competition. Using tactics such as changing sales strategy and giving sales incentives can help revive the morale of your salespeople. But, you will need a robust sales commission software to monitor your sales team's performance and implement an incentive program effectively.
Are you still processing sales commissions manually? It may be high time you get your sales commissions process automated. Here are the 5 reasons it's time for you to get a sales commission software.
How can you tell if it’s time to invest in a sales commission software? Watch out for the following signs in your sales force:
- Drop in sales rep's performance
After a season of a spirited campaign, the performance of sales reps may suffer a significant drop. This can be attributed to burnout and the excessive pressure that marks such campaigns. Now, burnout and any stress related to work can hinder employees from concentrating on their tasks thus lowering their performance.
But, a dip in sales is never good for a business. Your company can reverse the downward trend by introducing sales incentives. The incentives could be financial or non-cash prizes but specially designed to motivate the salespeople to sell more during their low moments.
- The increase of low-quality sales
Another indicator that you need a sales tracking software is when you realize that the quality of sales is plummeting. Exhausted sales reps are likely to target the low hanging fruits such as cross-sales to existing clients. This is because getting new business can be demanding and stressful. It requires one to have a lot of positive energy which many may lack at this time. If you have a sales commission software, you can monitor their results and take note when the quality of sales is dropping. Then you can introduce necessary strategies to restore quality performance in your sales teams.
- Drop in salespeople’s morale
According to Career Trend, an important factor in maintaining a high sales output is ensuring that the spirit of your staff stays high at all times. Unfortunately, negative energy is infectious and it only takes one disgruntled employee to dampen the morale of the rest.
When you realize that one or a few of your sales reps are in low spirits, you need to arrest the situation quickly before it spreads and eventually hurts your business. Besides, when the morale of your employees is low, they don’t focus on their goals. With proper sales compensation plans, your salespeople understand their individual targets and are motivated to focus on their daily tasks to achieve those targets.
- Increased sales force attrition
As a business owner, you must always track and review your sales team’s turnover. It can be a key indicator of your employee satisfaction. According to Harvard Business Review, most high performing sales reps leave employmentbecause of not being appreciated and recognized, allowed some degree of freedom, or given good incentives.
Any time you notice that the attrition rate of your top performers is rising, consider reviewing your incentive plans and making them lucrative enough to retain your best sales reps. This will require a robust commissions software such as QCommission that can handle complex incentive plans.
- Disengaged employees
According to Recruiter, there are two types of disengaged employees. There are the passive ones and the actively disengaged. The former will invest their time but not their passion to their work while the latter will openly express their disappointments with a view of discouraging their peers.
The rise of such characters among your sales force is a real threat to the success of your company. While it may be hard to completely weed out such employees, you can put up incentive strategies that keep most of your staff engaged and motivated to achieve their targets.