case study
ATG, Xactly Help Q2 Software Transition to Purpose-Built Commissions Solution
CLIENT BACKGROUND
Q2 Software provides electronic banking solutions. The company offers a platform for flexible deployment of electronic banking products and services securely across online, voice, and mobile channels.
Industry: Software
Services: Electronic Banking Solutions
HQ: Austin, TX
Website: q2.com
BUSINESS CHALLENGE
- Q2 sales commissions were calculated manually. A spreadsheet was created to collect all sales representative data, all plan data, and all order data and calculate the commissions. The spreadsheet, even with under 100 reps, was so unwieldy that it took nearly an hour just to open.
- Q2 has highly complex deal crediting scenarios that require many different lookup tables. These complex commission scenarios required a partial upfront payment of commissions and an achieved quota attainment triggered payment of the remaining portion. Part of Q2’s complexity is their position as a multi-national company with several different business lines acquired through mergers which requires unique commission scenarios.
- The use of spreadsheets for commissions calculations didn’t allow for an efficient way for sales reps to ask questions about commission status or submit disputes, nor did it allow those reps to estimate the impact of additional sales on their commissions.
- The commission calculations took excessive time to enter, maintain, and audit, and was nearly impossible to maintain expense accounting with any changes to information.
ATG SOLUTIONS & TOOLS
- Implementation Services: ATG replaced Q2’s spreadsheet commission processes with the streamlined Xactly Incent system to load orders for crediting, commissioning, and bonusing to sales reps in a more timely manner including Xactly’s ICM (Incentive Compensation Management) solution, Incent, and Xactly’s commission expense recognition solution, CEA. Q2 also intended to utilize the system to allow their sales reps to estimate their potential payouts if they were to win certain deals and to submit disputes regarding their payouts.
- Implementation Services: The ATG Implementation team followed Xactly best practices to provide transparent collaborative project management and allow for incredible growth for the client.
RESULTS & IMPACTS
- The Xactly Incent and CEA (Commission Expense Accounting) implementation lowered the expense of calculating commissions by reducing the data entry times, maintenance, and auditing.
- ATG’s implementation of Xactly’s products also improved employee satisfaction by improving the quality and accuracy of commission calculations.
- ATG also implemented custom functionality using lookup tables that allowed for Q2 to experience a very intelligent system from Xactly. These versatile lookup tables reduced overhead maintenance work on all credit types. Intricate rules were created to seamlessly payout the 28 different variations of commissioning.