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, AI in commission plans is already playing a big role in how sales functions today.
When it comes to reshaping sales management processes, AI will play a pivotal role, according to SiriusDecisions. The firm foresees every aspect of sales strategy and planning – including sales compensation plan design, assessment, and execution – feeding off a single data repository that integrates with AI solutions.
Organizations that are ahead of the curve are already using augmented intelligence to build their commission plans, putting time-consuming, tedious manual processes in the past.
Augmented intelligence combines machine learning with human insight, enabling quick, confident, and impactful decisions. This type of AI discovers trends and patterns that humans build upon to drive business results.
Rocket plan: 7 ways AI will boost your commission plans
Let’s take a look at seven ways your company can benefit by modernizing your approach to commissions, thanks to investing in AI-enabled tools that can deliver maximum efficiency and agility to the sales process.
- Eliminate the guesswork from 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.
- Provide 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? Discover hidden insights in less time with AI-powered commission tools, quickly finding the answers you need to leverage analytics and realistically set expectations for your team. With first-class quotas in place, employees will be motivated to help your organization reach its goals.
- Assign territories for peak performance: Do you know whether you’ve divvied up territories evenly and optimally? If not, it’s 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, helping assure territories are well balanced, thereby enabling your sales operation to reach its highest potential. The technology leverages a scientific process that takes all variables and factors into consideration to define the most efficient game plan.
- Build trust with sales reps: You can’t 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. Such disputes are time-consuming, and can also ruin employee morale. Give your sales reps the peace of mind that comes with knowing they are getting paid fairly. With the right tools in place, an objective and scientific process dictates commissions plans, territories, and other programs, translating into fewer arguments and complaints, and reducing sales force churn. (Not to mention increasing employee engagement and productivity.)
- Maximize profits: Any company can spend too much or too little on commission. The trick is finding the perfect balance that keeps employees happy while maximizing 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.
- Save time: AI-enabled compensation tools empower managers to introduce new commission plans in days, not months. The time you save can 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.
- 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 commission software allows 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.
Hop on the bus, Gus
AI may seem like the stuff of the future, but it’s already reshaping the way we live and do business. You’ve got to figure out how to leave mundane and tedious processes behind so your sales crew can focus on what matters most: Your customers.
By investing in an AI-enabled commission solution, your company can increase agility and efficiency while building a team of motivated salespeople who strive to reach their full potential each day.