Sales Performance Management (SPM)
Sales Performance Management enables businesses to maximize the potential of a sales or other revenue generating organization while minimizing cost. Through efficient Incentive Compensation Management, Quota Planning, Territory Optimization and Performance Insights, businesses are enabled to significantly increase results. Effective SPM ensures that revenue generating individuals are aligned with corporate goals, highly motivated, properly incentivized, and paid accurately.

Key SPM Terminology
Recent SPM Case Studies
Sales Performance Management Components

Quota Planning
Quota Setting
Quota Over Assignment
Top Down vs. Bottom Up
Pipeline Analytics
Pipeline analytics are necessary to answer the question, "How or will a sales rep meet their quota?"
Headcount / Workforce Planning
The continual process to align the needs and priorities of the organization with those of its workforce to meet legislative, regulatory, service, production requirements and organizational objectives.
Attrition Modeling
Planning for sales rep attrition, how to make up for a rep that is lost during the sales year both financially and w/ the customer relationship.
Benchmarking
Territory Management
Territory Planning / Assignment is the process used to define equitable geographical sales territories, based on market factors and customer intelligence data, that enable a salesperson to meet their assigned quota. These are critical to any sales plan. SPM can take it even further by automation territory design based on opportunity and travel distance, minimizing travel time so that reps can spend more time selling. Identifying where territories do and do not give reps the opportunity to sell enough, or where you can sell X times more than you planned in an area because dollar for dollar if they overshoot they will sell more.
Compensation
Sales operation decisions fuel the sales engine and drive company growth. Therefore, it is critical to lay a strong foundation in technology and best practices. So many companies automate incentive compensation and stop there. But ICM has become table stakes in effective revenue operations. To truly maximize potential and gain a competitive edge, strategic operational technology must be leveraged across the Sales Performance Management ecosystem."

Kendra Hannon
Director, SPM Practice Lead
at ATG Cognizant
Who Benefits from SPM?
Sales Leadership
Sales Reps
Financial/Sales Ops
Human Resources
Accounting
Customers
SPM Key Concepts
Territory Management
Commission calculation is the cornerstone of SPM. Rules-based calculation engines allow for one-time setup of compensation plans, decreasing processing time and eliminating errors. Most commission calculation engines can perform complex commission crediting, overlay, and user-maintainable rate calculation logic.
Plan Document Creation & Routing
Dispute Resolution
Approval Workflows
Reporting & Analytics
Performance
Benchmarking
Territory Planning
Moving from archaic spreadsheets and endless manual processes into an integrated platform solution puts any business on the cutting edge. Real-time, accurate calculations for sales reps provide new transparency that influence selling behavior. The complex and arduous process of compensation administration and planning becomes highly simplified and automated. Incorporated reporting and analytics create new visibility into the business. Everybody wins."

Gracie Sanford
Director of Strategic Alliances
at ATG Cognizant
People, Process, and Technology of SPM
People
Sales Performance Management (SPM) is typically the domain of a company's sales organization, although, depending on the type of products or services offered, SPM may originate with either the Product or Operations group.
In most organizations, the Finance org is also heavily involved, while company's that are tightly-aligned to a common set of KPIs would also have Customer Success, Customer Service, and perhaps Marketing in the mix. And, as with all ecosystem domains, the folks from I.T. have their fingers in the pie as well.
Sales
Product
Operations
Customer Service
Customer Success
FINANCE
FINANCE - Billing
I.T.
Process
ATG maintains a set of 100 key business processes to support the management of customers and revenue for businesses. Forty-three of these processes originate or are impacted by the SPM function, with the majority of those being performed within the Sales Organization. Below are the key processes that are touched in SPM, categorized by the organizational unit that owns the process:
Attrition Modeling
Method of mitigating financial risks and risks to achieving the organization's sales quota by modeling the expected attrition by sales reps' throughout the sales year.
Commission Calculation
Rules-based calculation engines allow for one-time setup of compensation plans, decreasing processing time and eliminating errors.
Compensation Plan Administration
The administrative aspect of managing compensation plans for a sales organization.
Compensation Plan Documentation Routing & Acceptance
The template and workflow functionality to automate the creation, distribution and acceptance of compensation plans. Based on existing configuration, plan documents can be auto-created and populated with quotas, rate calculations, and terms and conditions. Workflows distribute plan documents to sales managers and representatives for electronic approval, providing a straightforward way to approach plan acceptance and tracking.
External/Partner Transaction Management
Management and integration of any of third-party resellers/partner, or large enterprise customer, transactions that including selling, billing & collections, and account management.
Quota Setting
Process to allocate the expected contribution towards revenue goals across territories.
Quote - Product / Service Discount
Configuration of product and service discounts relating to certain criteria (e.g. volume discounts, geography, trying to win the deal, etc.).
Quote - Product / Service Pricing
Configuration of features and attributes of products and services prior to a sale. Typical in a custom solution environment.
Sales Credit Assignment
The process of identifying deal ownership and assigning credit or split credit accordingly.
Sales Credit Rollup / Rollover
How an organization assigns sales credit appropriately to multiple parties for commission payout based on hierarchy or reporting structure (rollup) or horizontally as a deal influencer (rollover).
Territory Planning
Defining equitable geographical sales territories, based on market factors and customer intelligence data, that enable a salesperson to meet their assigned quota.
Sales Reporting
Collecting and analyzing data to inform on key sales and company performance metrics, including revenue and cost analyses, individual and team performance, employee churn, and sales to business model alignment.
Payroll Output
The process by which commissions are finalized for payment in a period; this includes data and calculation validation by the Sales department, as well as approvals and issuance of payment by the Finance or Accounting department.
Clawback Processing
Executing the payment back of any commissions or spiffs that were paid out but required to be returned due to cancellation or special contractual circumstances.
Commission Dispute Resolution
Submitting a commission calculation or ownership for review and resolution under the premise it is incorrect.
Renewal Processing
Methods used to renew a customer's services, may be manual or automated. This could apply to the renewal of maintenance and support for Perpetual products, or renewal of a subscription term for Cloud products.
Bundled Product Introduction Process
Configuring and introduction of a bundled product or service to the product catalog and supporting systems. Includes definition of product/bundle attributes, pricing rules (usage, recurring, non-recurring), discounts rules, product/service lifecycle, revenue recognition, and reporting attributes.
New Pricing Introduction - Existing Construct
This process is for creation of a new pricing rate for an existing construct. For example, creation of a $24.95/mo. plan for a geography that previously had been at $27.95/mo.
New Pricing Introduction - New Construct
This process is for creation of a new pricing construct for an existing product or service. For example, creation of a monthly subscription where previously there had only been annual.
New Product Introduction Process
Introduction of a new product or service to the Product Catalog and supporting quoting, ordering, contracting, provisioning, ticketing, invoicing, payment, usage, and revenue recognition systems. Includes definition of product attributes, pricing rules(usage, recurring, non-recurring), discounts rules, product/service lifecycle, revenue recognition, reporting attributes, and bundling concepts.
New Product Introduction Process - Mobile
Configure attributes and introduce new products and services, with specific focus on making the product available on mobile devices.
Promotion & Discount Introduction
The configuration of standard, pre-defined promotions and discounts of products or services.
Proactive Customer Notification - Operations Focus (CC Expiry, Payment Received Notification)
A proactive approach to notify customers of pertinent payment information, particularly keeping Credit Cards current to limit number and impact of reject processing.
Service Provisioning / Activation
The process of activating or de-activating a service or product for a particular customer.
Cross-Training of Monetization Ecosystem Components
Process for training organizational resources
Data Stewardship Across Monetization Ecosystem
Process of assigning ownership and sources of truth for data within the organization.
Maintenance & Oversight of Monetization Ecosystem
Process around assuring that all touchpoints and connections in the ecosystem are optimized and working to their full potential.
Monitoring & Testing of Vendor Functional Releases
As ecosystem components release updates and patches, each is checked and tested to confirm all systems are working together as required by the business' requirements.
Security Oversight of Monetization Ecosystem
Process for maintaining and controlling access and permission to ecosystem components.
Vendor Management of the Monetization Ecosystem
Management of ecosystem component vendors including proactive communication of changes and general relationship nurturing.
Credit Card Processing
Methods to receive credit card payments including authorization, payment gateway, processing, interchange, and credit card success/failures.
Invoice Finishing & Delivery
Typically, billing engines produce raw invoice or statement data. Often, external applications are used to package this data for presentation on a paper invoice, electronic distribution, or alternate media. Most billing engines have rudimentary invoice presentation capability.
Payment Processing
The steps taken to process different payment methods from customers.
SOX/Regulatory Compliance
The ability to provide proof of internal controls to prevent fraud and material misstatements.
System Auditability
Provides assurance that source system data is accurate, and a paper trail exists from a transaction to financial statements.
Collections / Treatment Processing
For net terms customers, the ability to pro-actively manage a process to collect money from customers who have fallen behind in the periodic billing. These are processes specifically designed to keep customers, that for one reason or another have balances in 30-60, 60-90, etc., day buckets.
Commissions Processing, Referral Fees, and Clawbacks
The process of tracking sales commissions, referral fees paid to partners, and sales rewards programs.
Currency Conversion
The point within a multinational company's sales cycle where currency is converted. This conversion may occur at the transaction or during the commissioning process, and must be carefully monitored to ensure accurate conversion rate and payment amount, and to enable standardized reporting.
Cross-Sell Processing - Ongoing
A central method for increasing Average Revenue Per User (ARPU) and is the process of selling additional product(s) or service(s) to a customer during the customers' entire lifetime with your company. This process is separate from Cross-sell Processing - Initial order.
Proactive Customer Notification - Success Focus (Recommendations, Advice of Charge, Overage Notifications)
Exceeding customer expectations by using data and triggers to notify them of an opportunity or looming risk.
Up-Sell Processing - Ongoing
A central method for increasing Average Revenue Per User (ARPU) and is the process of moving a customer to a better or higher version of a product or service throughout their lifetime with your company. This process is separate from Up-Sell Processing - Initial Order.
Retention / Churn Monitoring
The process of monitoring customer turnover.
Daily, Periodic, or Ad Hoc Reporting (ETL, Report, Dashboard)
Movement of data between domains to create a single source of truth for reporting and dashboarding. Includes key metrics such as revenue analytics and other KPIs
Technology
Month-end close is hard. Equitable quota and territory setting? That’s tricky too. And don’t forget about building/executing effective compensations plans; it’s basically an art. Our team of experts know the challenges that sales leaders, administrators, and reps face every day. Our combined expertise span industries, technologies, and stages of organizational growth. We work HARD to bring our customers goals to life, using best-in-class practices and processes."

Hannah Sackett
Xactly Practice Lead
at ATG Cognizant
Key SPM Vendors

ESSENTIALS
Founded: 2005
HQ: San Jose, CA
Company Type: Privately Held
Website: www.xactlycorp.com
Delivery Method: Cloud
OVERVIEW
Xactly Corporation develops cloud-based, enterprise-class incentive compensation solutions that enable employers to design and automate compensation plans which align employee incentives with business goals.
The Company’s SaaS solutions optimize sales performance, employee behavior, and strategic decision making while reducing risk and error rates in compensation calculations. Xactly is the first fully cloud-based, multi-tenant provider focusing solely on the incentive compensation and employee and sales performance management markets.
PRODUCT & SERVICES:
- Sales Planning
- AlignStar - Territory Management
- Sales Resource Planning
- Benchmarking
- Incent - Incentive Compensation Calculations
- SimplyComp - DIY incentive compensations
- Commission Expense Accounting
- Planning Performance
- Connect - open API platform
TARGET MARKET
Xaclty target organizations in many industries of any size.
CUSTOMERS
- SanDisk
- Salesforce
- Rosetta Stone
- Workday
- Honeywell

ESSENTIALS
Founded: 2003
HQ: Toronto, Canada
Company Type: Public
Website: www.varicent.com
Delivery Method: Cloud
OVERVIEW
Varicent Software is a global pioneer in Incentive Compensation and Sales Performance Management that delivers innovative, industry-leading solutions for finance, sales, human resources and IT departments in high-performing companies across industries.
PRODUCT & SERVICES:
- Reporting, dashboards, and analytics
- Composer and calculation engine
- Workflow routing and scheduling
- Integration with Watson Analytics
TARGET MARKET
Varicent target organizations in many industries of any size.
CUSTOMERS
- Siemens Healthineers
- Louisiana-Pacific Corporation
- Tektronix
- Ferguson
- Colt Technology Services
- Zions Bancorporation
- S. Bank

ESSENTIALS
Founded: 2006
HQ: San Francisco, CA
Company Type: Publicly Held
Website: www.anaplan.com
Delivery Method: Cloud
OVERVIEW
Anaplan platform offers a leading scalable Sales Performance Management software that has an all-encompassing power of connected planning. Anaplan can help a business prepare for the unexpected, organize multiple moving parts, keep the business moving in unison, and maintain the necessary processes as company growth occurs. The forward driving architecture has the capability to achieve business goals through connected planning.
PRODUCT & SERVICES:
- Reporting, Dashboards, and Analytics
- Operations Planning
- Budgeting and Forecasting
TARGET MARKET
Anaplan targets organizations of many industries of any size.
CUSTOMERS
- Carter's
- DocuSign
- Sonos
- United

ESSENTIALS
Founded: 2017
HQ: San Francisco, CA
Company Type: Publicly Held
Website: www.captivateiq.com
Delivery Method: Cloud
OVERVIEW
CaptivateIQ platform offers a software solution that offers data integrations, compensation management, Reporting tools, and Collaborations. The inclusivity of CaptivateIQ platform allows for easy connection to Salesforce, NetSuite, Snowflake, and more. CaptivateIQ has the ability design plans that push your teams to grow, create reports that enhance business decisions, as well as simplifying how your employees get work done and communicate. This commission platform streamlines commissions for every team, allowing for a completely automated process.
PRODUCT & SERVICES:
- Reporting, Dashboards, and Analytics
- Sales Performance Management (SPM)
TARGET MARKET
CaptivateIQ targets many organizations of varying industries and size.
CUSTOMERS
- Envoy
- Affirm
- Udemy
- Intercom

ESSENTIALS
Founded: 2013
HQ: Chester, PA
Company Type: Privately Held
Website:www.optymyze.com
Delivery Method: Cloud
OVERVIEW
Optymyze platform combines cloud, analytics, and business process automation with a no code development. The enablement that no code offers is not limited to continuous integration, seamless deployment, multi scalability, end-to-end automation, multi-industry solutions, and overall process unification. Opymyze empowers growth, success, change, and to think bigger.
PRODUCT & SERVICES:
- Reporting, Dashboards, and Analytics
- Sales Performance Management (SPM)
- Development Process Automation
- Workforce Performance Management
- Business Process Automation
TARGET MARKET
Optymyze targets many organizations of varying industries and size.
CUSTOMERS
- McKesson
- Office Depot
- US Bank
- Echo

ESSENTIALS
Founded: 1977
HQ: Redwood City, CA
Company Type: Public
Website: www.oracle.com
Delivery Method: Cloud
OVERVIEW
Oracle Sales Planning and Performance Management (SPM) offers a unified sales planning with smart view, predictive planning, and flexible modeling. Oracle’s platform allows businesses to use sales planning, quota management, territory management, incentive compensation, and Forecasting software to enable business success. Oracle SPM, when utilized, will help sales teams and operation staff to optimize incentive compensation, quota management, and territory management tools. This cloud-based software will allow for better planning with deeper insights.
PRODUCT & SERVICES:
- Sales Performance Management (SPM)
- Sales Planning Management
- Quota Management
- Territory Management
- Incentive Compensation
- Forecasting, Dashboards, and Analytics
TARGET MARKET
Oracle SPM targets organizations in any industry.
CUSTOMERS
- Liberty Mutual
- Nasdaq
- Vanguard
- PayPal
- Morgan Stanley

ESSENTIALS
Founded: 2006
HQ: Irvine, CA
Company Type: Publicly Held
Website: www.performio.com
Delivery Method: Cloud
OVERVIEW
PerformioSalesPerformance Management (SPM) gives businesses the power to make confident informed decisions. The flexibility allows for a customizable plan design as well as a fully auditable commission processing system. Performio’s integration capabilities extend to Salesforce and NetSuite to make data management simple. The power of the data management and connection tools combined with powerful reporting unleashes an empowered sales team with capabilities to cut down on deal closure times with improved efficiency.
PRODUCT & SERVICES:
- Sales Performance Management (SPM)
- Reports, Dashboards, and Analytics
- Sales Representative Portal
- Financial Planning and Audit Logs
TARGET MARKET
Performio SPM targets organizations in many industries of varying sizes.
CUSTOMERS
- Vodafone
- BrowserStack
- Globalpayments
- Ondeck

ESSENTIALS
Founded: 1972
HQ: Newton Square, PA
Company Type: Public
Website: www.sap.com
Delivery Method: Cloud
OVERVIEW
SAP Sales Performance Management (SPM) has been utilized through the acquisition of CallidusCloud that has enhanced the SPM abilities of SAP. A comprehensive combination of commission management, territory management, and quota management has allowed for SAP to be a leading provider of SPM. With the right foundation, SAP Sales Performance Management can deliver accurate forecasts based on trends that will ensure business success. Companies running on SAP can expect to increase their sales, have comprehensive solutions, and a rounded sales performance management cloud-based platform.
PRODUCT & SERVICES:
- Sales Performance Management (SPM)
- Commission Management
- Territory Management
- Quota Management
TARGET MARKET
SAP targets organizations in many industries, including, energy, financial, telecommunications, healthcare and high tech. Target organizations are typically small-to-medium enterprises.
CUSTOMERS
- Globenet
- Adobe

ESSENTIALS
Founded: 2018
HQ: Salt Lake City, UT
Company Type: Privately Held
Website: www.spiff.com
Delivery Method: Cloud
OVERVIEW
Spiff Sales Performance Management (SPM)is a real-time dashboard that can create reports, give visibility into teams and plan, and help with quota management or attainment. In one all-encompassing system, representatives have the capabilities to connect all their commission systems for a seamless integration.Spiff utilizes a machine learning feature that cuts down errors and saves time so your systems are accurate, and your representatives can spend their time elsewhere. Their fast onboarding and AI supported solution will allow you to manage your business more efficiently with the help of incentives.
PRODUCT & SERVICES:
- Sales Performance Management (SPM)
- Sales Compensation
- Team Management
- Quota Management
- Planning Management
TARGET MARKET
Spiff Sales Performance Management (SPM) targets many companies in many industries.
CUSTOMERS
- Lucid
- Sendoso
- Algolia
- Workato