June 18, 2019 | Written by: Kevin Gray
Categorized: Sales Performance Management
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Vendor rebates and co-marketing funds can be difficult for retailers to track and successfully capture, especially when multiple, siloed legacy systems are involved. Add tiered incentive arrangements, percentages tied to advertising activity, varied and complex parameters – along with thousands of vendor invoices – and a retailer can be left scrambling to avoid financial losses. But with an innovative use of incentive compensation management software, electronic retailer Abt solved their vendor rebate and co-op fund tracking issues.
Abt Electronics, Inc. is a large independent U.S. single-store appliance and electronics retailer. They carry tens of thousands of products in a variety of categories, including appliances, electronics, custom kitchens, furniture, mattresses, watches, fitness equipment and more. Together with IBM and IBM Business Partner WorkCentive, Abt modernized their vendor incentives tracking with an IBM Incentive Compensation Management (ICM) solution designed to speed and automate management of the many complex elements of sales commission payouts.
ICM software automates administration, calculation, reporting and analyses of incentive compensation programs. In terms of data inputs, compensation plan systems are comprised of elements like multiple product lines, pricing, tiers, parameters, quotas and territories – not unlike the inputs that a retailer like Abt deals with on the rebate and co-op side.
Deployed in six weeks, the new ICM approach has Abt focusing on running the company instead of reviewing, confirming, updating and manually calculating thousands of records. In addition to significant savings in time, Abt reports that the new system delivers automated, up-to-date accuracy and one-stop ease-of-use. IBM Business Partner WorkCentive contributed in-depth expertise of how a sales compensation management solution could be successfully applied to Abt’s specific needs.
Automated incentive management processes save time and effort by calculating compensation faster and reducing the need for manual processing. They also cut the risk of errors. With IBM ICM, sales management and compensation professionals can also view sales effectiveness reports to ensure the sales team is executing in alignment with the sales strategy. The software helps companies track the sales team’s performance to identify coaching opportunities, and to manage territory definitions and crediting rules to ensure the company has adequate sales coverage.
About ICM software from IBM
ICM improves insight with greater visibility of compensation payment analytics to drive more informed decision-making. It also handles inquiries submitted by salespeople who have questions about their commission payouts. Advanced analytics help improve sales effectiveness and ROI. In fact, Gartner research, which evaluates Sales Performance Management vendors, has put IBM ICM in their leader quadrant for six years running.
IBM ICM has a rapid deployment service that offers three editions. The essentials edition provides a core set of capabilities as an essential foundation for your solution requirements. The standard edition provides additional capabilities that meet the needs of most organizations, and the advanced edition has the most comprehensive set of capabilities to meet more complex requirements. Learn more about solutions.