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The core value proposition for the
Company focuses on delivering the following benefits to
our customers; in short, this is why they will choose
to partner with NetCommissions in their efforts to use
incentive compensation as a strategic weapon. The benefits
of partnering with NetCommissions to ensure timely and
accurate commission payments are many;
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| Focus corporate attention on core competencies
while outsourcing the administration of a complex business
process to experts |
The incentive compensation process
is conceptually simple, but very hard to do well. Situations
are common where poor process execution can drive low
levels of moral, high costs, and either a sense of mistrust
or entitlement throughout the employee base. Partnering
with NetCommissions frees a company to focus on what
it does well – its core competencies – while
outsourcing administration of the incentive compensation
process to experts whose sole focus is the optimization,
automation and administration of the incentive compensation
process.
The combination of a highly complex business process
and the high cost of failure makes this a process one
best handled by experts; NetCommissions. Managing incentive
compensation can be very complex with incentive plans
built on a complex set of interdependent business rules
governing such matters as credit assignment for each
sales transaction, eligibility, policies and procedures,
etc. Companies with large sales forces in very competitive
markets, and/or companies that are growing at a very
fast rate will quickly outgrow their capacity to manage
this process in an effective manner. The tasks involved
are time consuming, technology intensive and fraught
with high risks associated with workforce alignment
and moral.
By outsourcing the incentive compensation process,
companies shield themselves from the current and future
technology costs tied to managing the incentive compensation
process internally.
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| Improved sales force efficiency |
Companies will reduce the practice
of ‘shadow accounting’ - sales people manually
tracking sales for which they believe they should be
receiving credit and reconciling this with their periodic
commission checks. This can save companies up to 1 day
per month per sales person. This additional time spent
selling not only decreases labor cost by adding at least
5% more efficiency to the sales force, but also impacts
revenue as the reps will have an additional day a month
to sell.
By improving the level of employee satisfaction and
confidence in the commissioning process, turnover within
the sales force will decrease lowering costs and increasing
revenue (cost impact alone is estimated at $110K per
sales rep) and revenue gained due to lower turnover
can be significant (or said differently, revenue lost
due to thin sales coverage will be minimized).
Sales efforts will be better aligned with value producing
activities such as selling the right product mix. By
placing higher commission rates on target product lines,
Gross margins can be improved (through selling higher
margin products) and/or cash flow can be improved (by
encouraging the sale of aging inventory). |
| Improve strategic value of incentive
compensation |
As the saying goes, ‘people
do what they get paid to do’. The ability to respond
quicker to a changing competitive environment through
the use of a flexible commissioning system can be a
tremendous strategic advantage for our customers.
Incentive compensation is, above all, a method of
communicating feedback to an employee population in
a timeframe and in terms that are meaningful to them.
By investing in the incentive compensation process,
buy-in throughout the company to strategic initiatives
will be improved.
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| Lower Costs |
The elimination of errors in commission
payments can significantly lower the cost of sales.
By eliminating overpayments (estimated at between 5-15
% of commissions paid) the cost of sales can be greatly
reduced. Additional benefits come from the elimination
of ill will that attempts by companies to recover these
commission dollars can generate.
Conversely, the elimination of commission underpayments
will reduce administrative costs associated with dealing
with disputes over underpayment of commissions and eliminate
another source of ill will within the employee ranks.
The automation of business processes related to such
activities as approvals (as in the case of a change
to commission rates, the periodic approval of commissions
payouts or the approval of a specific override) dispute
resolution, notifications, etc. drive significant cost
savings and much more streamlined business processes.
Companies will realize cost savings through the application
of NetCommissions technology that may result in headcount
reduction of the compensation administration team. These
resources are freed up to address other issues more
vital to the core competence of the company.
To By providing a critical mass of process experts whose
sole focus is the application of NetCommissions technology
to their business process, customers will realize cost
savings when they choose to implement or update their
incentive compensation plans. |
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NetCommissions helps companies improve sales force productivity by providing market leading on-line sales commissions management solutions. NetCommissions has a proven track record of developing and delivering innovative sales commission management solutions that deliver not only timely and accurate payments, but also provide customers with the industry's most integrated, comprehensive and motivating user experience.
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| White Papers |
Data Sheets |
Demos |
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| To learn more about NetCommissions solutions or to receive a free ROI consulation, please request more information or contact us at 1-888-937-8383 to speak to a commissions expert. |
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Have a question? Here is where you will find answers to many questions commonly asked of NetCommissions.
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