Artificial intelligence and augmented intelligence promise to transform every industry, from transportation and manufacturing to finance and healthcare. Sales operations is no exception.
In fact, according to SiriusDecisions, AI will play a pivotal role in reshaping sales management processes in 2019. The firm foresees sales strategy and planning, including sales compensation plan design, assessment and execution feeding off a single data repository that integrates with AI solutions.*
Forward-thinking organizations are already leveraging augmented intelligence to build their commission plans, putting time-consuming manual processes in the past. Augmented intelligence combines machine learning with human insight to enable quick, confident, and impactful decisions. This type of AI helps discover trends and patterns that humans build upon to drive business results.
Let’s take a look at seven ways your company can benefit by modernizing your approach to commissions by investing in AI-enabled tools designed to bring maximum efficiency and agility to the sales process.
1. Take the guesswork out of plan optimization
Augmented intelligence eliminates guesswork with granular prescriptive compensation plan recommendations. Relying on predictive and prescriptive recommendations means less time working with spreadsheets, emailing forecasts, updating price books, and managing product configurations — and more time driving results.
AI enables sales ops teams to transition from tactical work to a more strategic role of streamlining processes and finding opportunities to grow the business.
2. Get optimal quota insight
Are you on pace to achieve your goals? Do you know whether your sales team’s quotas are too low or too high? Is your team motivated to sell the right products?
AI-powered commissions tools enable you to discover hidden insights in less time. Find the answers you need quickly and leverage analytics to discover exactly how much you can reasonably expect your team to sell.
With optimal quotas in place, your team will be motivated and your company can reach its goals.
3. Get help assigning territories for optimal performance
Do you know whether you’ve divvied up territories evenly and optimally? If not, it becomes that much harder for your sales team to reach its goals and for your organization to reach maximum profitability.
Creating fair territories requires understanding and comparing complex data sets. AI can remove the complexity to help you make sure territories are well balanced and enable your sales operation to reach its highest potential. The technology leverages a scientific process that takes all variables and other factors into consideration to come up with the most efficient game plan.
4. Build trust with sales reps
You can’t effectively grow your business if you’re constantly arguing with your sales team about how much they’re owed or whether a certain payment was too low or too high. Not only can such disputes be time-consuming, they can also ruin employee morale.
With the right tools in place, sales reps get the peace of mind that comes with knowing there is an objective and scientific process in place that dictates commissions plans, territories, and other programs. In other words, they know they are getting paid fairly.
This translates into fewer arguments and complaints, which reduces sales force churn and increases employee engagement and productivity.
5. Maximize profits
Any company can spend too much or too little on commission. The trick is finding the perfect balance that keeps your employees happy while maximizing your profits.
With modern commissions tools in place, compensation managers can stretch every dollar with real-time, prescriptive plan recommendations aligned to corporate goals. Expenses can be balanced with revenues. Predictive analytics also enable managers to identify outliers and eliminate costly overpayments.
6. Save time
AI-enabled compensation tools empower managers to introduce new commission plans in days, not months. The time you save here can then be invested in other mission-critical areas of operations.
The right tools enable you to build complex plans quickly without any coding or reliance on data scientists, thanks to drag-and-drop functionality. You can also set up customized payout schedules so all salespeople get paid as frequently as you’d like.
7. Reduce consultant and professional fees
Instead of creating comp plans internally, many organizations rely on consultants and professional services firms to draft plans for them—usually at a steep price.
AI-powered commissions software enables companies to quickly and easily devise accurate compensation plans, no outside expertise required. With more money in the bank, you can focus on other revenue-generating areas of operations.
AI is here, take advantage of it
AI may seem like the stuff of the future, but it’s already reshaping the way we live and do business.
“AI reduces the cognitive workload for sales operations and makes it possible to share actionable insight across all levels of the organization,” SiriusDecisions said in 2019 sales operations forecast.*
By investing in an AI-enabled commission solution, your company can increase its agility and efficiency while building a team of motivated salespeople who strive every day to reach their full potential.
Contact us today to learn more about how AI can help you increase profitability and engage your top salespeople.
* SiriusDecisions, “Sales Operations: Planning Assumptions 2019.”