The Global Sales Performance Management Market size is expected to reach $3.2 billion by 2026, rising at a market growth of 13.8% CAGR during the forecast period. The method of monitoring and directing personnel to enhance their ability to sell products or services is termed as Sales performance management (SPM). With the help of software programs, the performance of the sales process can be improved. Using these applications, several activities can be simplified in the domain of corporate performance management process and motivate behavior that boosts sales.
Guiding and encouraging salespeople to set objectives and satisfy customers are considered as the primary aims of the sales performance management process. Elements for goal setting and planning, feedback, skill development & performance review are included in the SPM software. SPM software is beneficial in order to monitor information about sales quotas, territories, incentive compensation, job evaluation, and forecasting.
These days, markets are evolving at a rapid pace, and the method of selling goods has changed forever. At the time of global turmoil such as the COVID-19 pandemic, resulting in economic uncertainty – it’s certain that planning one time a year is no longer a feasible strategy. With the constant change in business and industry scenarios, constant and always-on planning is essential in order to adapt to these changes. This task cannot be done manually and without the help of data & digital technology.
Based on Component, the market is segmented into Solution and Services. Solutions segment is further bifurcated across Sales Planning & Monitoring, Sales Performance Analytics & Reporting, Territory Management, Incentive Compensation Management and Others. Among the components, the solutions segment is estimated to contribute significantly to the market, while the services segment is expected to register a prominent growth rate during the forecast period. This growth is attributed to the increasing requirement for reducing – commission payout errors and low quota attainment problems, and low level of visibility into incentives and employee performance.
Deployment Type Outlook
Based on Deployment Type, the market is segmented into On-premise and Cloud. The on-premises segment would garner the highest revenue share of the market over the forecast years. Increasing demand for customized solutions according to business needs, particularly among large enterprises & companies facing data security and privacy issues are the cause behind the growth of the on-premises segment. Large organizations with various data & design requirements and adequate sales personnel generally prefer an on-premises deployment model.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. Large enterprises would acquire a prominent revenue share during the forecast period. SME solutions are expected to offer profitable growth opportunities for the leading players operating in the market. Factors such as increasing automation to enhance visibility & prevent incentive compensation calculation errors, growing demand for metric-driven sales tools, and rising enterprise mobility to expand agent engagement & performance are expected to fuel the demand for SPM solutions.
End User Outlook
Based on End User, the market is segmented into BFSI, Travel & Hospitality, IT & Telecom, Healthcare, Manufacturing, Consumer Goods & Retail and Others. Among the verticals, banking, financial services, & insurance (BFSI) is anticipated to procure the prominent market share. As BFSI companies deal with different insurance & banking products like debit cards, credit cards, loans, and insurance policies that include employment of various sales representatives, the demand to handle complicated incentive compensation calculations and provide employees with comprehensive visibility into complete SPM processes has forced BFSI companies to actively adopt SPM solutions.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The North America region has already developed for SPM solutions. This is credited to the region’s robust economic landscape, increasing adoption of modern technologies, superior digital adoption at workplaces to enhance business processes, and growing awareness about the new technology. Moreover, the region comprises of developed countries like the US & Canada, which has majorly deployed SPM solutions, apart from integrating advanced technologies.
The major strategies followed by the market participants are Acquisitions and Product Launches. Based on the Analysis presented in the Cardinal matrix; Oracle Corporation and SAP SE are the forerunners in the Sales Performance Management Market. Companies such as Salesforce.com, Inc., Xactly Corporation, Varicent Software, Inc., and Beqom SA are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include SAP SE, Oracle Corporation, NICE Ltd., Salesforce.com, Inc., Anaplan, Inc., Zoho Corporation Pvt. Ltd., Xactly Corporation, Beqom SA, Iconixx Software Corporation, and Varicent Software, Inc.
Recent strategies deployed in Sales Performance Management Market
Partnerships, Collaborations, and Agreements:
Sep-2020: Oracle came into partnership with Xactly, a leading provider of cloud-based sales performance management software. Under this partnership, Xactly uses Oracle Cloud Infrastructure as its primary cloud provider to operate its flagship Incent SaaS application and boost its global footprints. By offering its Incent portfolio on Oracle Cloud Infrastructure, Xactly offers its customers enhanced performance and speed, the lower total cost of ownership in comparison to other cloud providers, and easy and rapid expansion into geographical areas.
Nov-2019: Oracle signed a partnership agreement with AptivIO, a provider of an intelligent market monitor. Under this partnership, AptivIO utilizes AI and real-time market data to automate and improve the sales process. Oracle Cloud got more power, scalable and reliability. Together, the company started Startups to assist drive growth and innovation, under which they applied AI to supercharge the whole sales process from recognizing prospects to monitor sales pipeline risk.
Nov-2019: Salesforce extended its partnership with Microsoft, an American multinational technology company. The expansion focused on helping customers fulfill the developing requirements of their businesses and accelerate team productivity. Salesforce selected Microsoft Azure as its public cloud provider for Salesforce Marketing Cloud. Under this partnership, Salesforce integrated Salesforce’s Sales Cloud and Service Cloud with Microsoft Teams.
Nov-2019: Beqom collaborated with Japan Tobacco International (JTI), a leading international tobacco product manufacturer. Under this collaboration, Beqom selected Japan Tobacco International to operate Total Rewards for its 40,000+ employees in over 80 countries. The Beqom solution managed all aspects of compensation which include benchmarking and rewards analysis, long-term incentives, base pay management, short-term incentives (bonus), and sales performance management which managed all on Beqom’s single platform.
Feb-2019: Beqom teamed up with Syngenta, a provider of agricultural science and technology. Following the collaboration, the former company introduced the go-live of its Long-Term Incentive (LTI) plan management system for the latter company. The solution focused on enhancing the sustainability, quality, and security of agriculture with world-class science and innovative crop solutions. This execution boosted Beqom’s growth rate and support other customers towards a successful HR transformation journey.
Acquisition and Mergers:
Oct-2020: Varicent completed its acquisition of FunnelCake solution, Developer of an analytics platform. The acquisition of FunnelCake was under the strategic expansion of Varicent’s sales performance management product line.
Jan-2020: Varicent acquired Symon.AI, a visionary technology platform. The addition of Symon.AI helped Varicent SPM platform a full suite of data connectors, data preparation, and augmented intelligence features. It also helped Varicent upsurge the competition to allow more effective compensation plans, enhanced optimized territories and quotas, and better-performing sales teams in minimum time.
Aug-2019: Anaplan agreed to acquire Mintigo, the Israeli-founded predictive marketing, and sales analytics company. Under this acquisition, Mintigo will enable Anaplan to implement and strengthen predictive capabilities over its prime HR, marketing, and sales applications.
Aug-2019: Salesforce signed an agreement to acquire ClickSoftware, a leader in field service management solutions. The acquisition aims to combine the capabilities of Field Service Lightning and ClickSoftware, Salesforce will position as the lead the future of field service.
Jan-2019: SAP acquired Qualtrics, an American experience management company. The acquisition boosted the XM category by integrating Qualtrics’ experience data with operational data from SAP software to strengthen the economy. SAP and Qualtrics provided organizations, the means to offer exceptional customer, product, employee, and brand experiences.
Sep-2018: Xactly took over OpsPanda, the provider of software solutions. In this acquisition, OpsPanda enabled Xactly to provide an AI-based sales resource and capacity planning solution to Xactly’s customers. This acquisition helped Xactly to deliver an uninterrupted and end-to-end, data-driven sales planning solution within their market-leading sales performance management (SPM) portfolio.
Apr-2018: SAP took over Callidus Software Inc., global enterprise software and SaaS company. In this acquisition, CallidusCloud completes SAP’s design of the latest front office that expanded beyond legacy CRM to an intelligent customer experience portfolio, which included CallidusCloud solutions that deliver tools to companies to inspire and strengthen sales professionals to transform leads into cash, compensation, and career success. Previously, the companies were into an agreement from 2017.
Feb-2018: Xactly completed its acquisition of Obero, a growing sales performance management (SPM) company. The acquisition added proven ASC 606 / IFRS 15, sales planning, and incentive management (ICM) capabilities to Xactly’s market-leading enterprise SPM portfolio.
Product Launches and Product Expansions:
Jan-2021: Salesforce introduced Loyalty Management. The product aimed for organizations’ overall industries to escalate customer trust and engagement. Loyalty Management is developed on the Salesforce Customer 360 Platform; it enables companies to make intelligent loyalty programs for both B2B and B2C customers with a flexible, configurable, and faster deployment of the solution that fulfills their specific requirements.
Dec-2020: Oracle introduced improved Territory Management and Incentive Compensation elements of its Oracle Sales Performance Management Cloud with the latest and enhanced features in its 21 A update. This enhancement falls under Oracle’s quarterly SPM update strategy.
Dec-2020: Salesforce launched Salesforce Hyperforce, a reimagination of the company’s platform architecture. It is built to safely and accurately bring the Salesforce Customer 360 that includes Sales Cloud, Marketing Cloud, Commerce Cloud, Service Cloud, Industries, and more, on crucial public clouds.
Nov-2020: Xactly introduced Operational Sales Management (OSM) to make sales processes smooth. OSM offers sales leaders access to one source of truth, which is seamlessly combined with their prevailing sales technology investments. It helps in making automatic management of day-to-day change by aiming at people, territory, credit, and quota management.
Nov-2020: Varicent unveiled mobile apps to offer reporting options related to the reporting capabilities in the Varicent platform. The apps can be downloaded through Apple’s App Store and Android marketplaces. These apps offer sellers improved and enhanced analytics and motivational tools on the go. This launch supported Varicent to further amplify its position in the SPM market.
Oct-2020: NICE inContact, a NICE business introduced NICE inContact CXone. The new CXone have features like new auto-discovery of trends on digital and voice interactions, the latest Business Intelligence (BI) for strengthening operational visibility, improving remote workforce agility and agent engagement, and new real-time customer authentication for better customer and agent interactions.
Oct-2020: Beqom unveiled a new version of its mobile app and Individual Pay Estimator. The latest version offers employees the capability to look at their performance and variable compensation pay-outs with better and flexible KPIs.
Jun-2020: Xactly announced the enhancements of its SPM Platform with AI, along with the Xactly Forms. Forms is an interactive product, which utilizes AI logic to run collaboration all over the business processes. The company also launched Xactly Show Me, another product enhancement within the Xactly platform that enables users to decrease onboarding time, rising administrator knowledge, and helps user adoption.
Dec-2019: Anaplan announced new AI-powered capabilities for Predictive Sales Planning to assist businesses to upgrade the design and execution of sales and revenue strategies to increase their revenue faster and attain a competitive edge in the market. Under Anaplan’s Predictive Sales Planning technology, it delivers sales leaders an ability to examine accounts based on AI-enriched insights that include company growth trends, hiring trends, business partnerships, technographic, and buyer intent.
Oct-2019: Beqom released version 9.2. This version features major functionality to allow holistic management of employee total compensation and breakthrough equipment for managers to assign compensation budget in real-time. It gives companies unprecedented capability to accurately manage rewards packages, fulfill the requirements of a multi-generational, global workforce, and fulfill company objectives.
Sep-2019: Salesforce unveiled Manufacturing Cloud, a new industry-specific product for manufacturers. Manufacturing Cloud delivers sales and operations teams together around a united view of market and customer demands to more precisely forecast, plan and manage predictable business performance. The product enabled companies to better fulfill commitments and operate a more smooth business, at the same time enhancing customer satisfaction.
Scope of the Study
Market Segments covered in the Report:
o Sales Planning & Monitoring
o Sales Performance Analytics & Reporting
o Territory Management
o Incentive Compensation Management
By Deployment Type
By Enterprise Size
• Large Enterprises
• Small & Medium Enterprises
By End User
• Travel & Hospitality
• IT & Telecom
• Consumer Goods & Retail
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• SAP SE
• Oracle Corporation
• NICE Ltd.
• Salesforce.com, Inc.
• Anaplan, Inc.
• Zoho Corporation Pvt. Ltd.
• Xactly Corporation
• Beqom SA
• Iconixx Software Corporation
• Varicent Software, Inc.
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