Things to keep in mind while buying commission automation software

Selection of the best software to simplify any process is not an easy task. The complexity of deciding increases manifolds when the business looking to establish its supremacy in a hypercompetitive environment.

Procuring suitable commission software is one such decision that warrants an in-depth analysis of the pros and cons before making the final call. Motivation levels of sales teams are directly linked to the incentives and benefits that can help them unlock their true earning potential. After all, many businesses feel that integrating cloud-based accounting software solutions reduce operating expenses by up to 50%.

As companies grow, managing all tasks related to compensation and incentives manually is not feasible due to the possibility of delays and errors. This is where the need for suitable sales commission software comes to the fore. The inherent benefits offered by commission tracking software have been propelling its growth, wherein most sales-oriented departments are opting for this incredible technology.

What is a Commission Automation Software?

Commission automation software, also known as commission tracking software, is a cloud-based platform that automates the administration and accounting of incentive plans and commissions based on customized rules. Organizations are at liberty to define their individual parameters related to tenure, sale type, or employee role. This functionality enables the management to determine and process sales commissions with considerable ease. Sales compensation software not only helps the management but also helps salespersons get detailed insights into potential future earnings based on past data. As a result, salespersons can plan for multiple compensation scenarios based on deals likely to be closed within a given period. With this information on their true earning potential, salespeople are motivated to give their best efforts to finalize the deals. Adopting cloud-based accounting solutions has helped numerous businesses boost their revenue by upto 15%.


Features Offered by Commission Automation Software

Specific features incorporated in a commission tracking software might vary as per the solution provider. Though, there are several common features that make them a good investment for a company, such as:

  • Comprehensive analytics: - Powered by real-time visibility, commission software offers detailed insights and analytics with just a few clicks. This feature enables the decision-makers, as well as the sales staff, to gauge their past performance and strategize on achieving specified targets pertaining to commission projections.
  • Seamless integration: - Sales commission software platforms are designed for seamless integration with most CRM systems to enhance the efficiency manifolds. Moreover, integration with software like Excel also helps with the seamless import of data from multiple sources.
  • Instant calculations: - Commission automation software solutions are designed to complete even the most complex calculations within a few seconds. By providing real-time information with just a click, this platform enables informed decision-making based on accurate data.
  • Detailed insights: - Company leadership is able to access useful insights related to market-validated performance for every salesperson. Hence, the company will be paying only true performers who have delivered results as per the specified benchmarks. Information related to underperforming employees helps with offering suitable training for improving their performance.
  • Strategic information: - Through analytics of big data, sales automation software delivers crucial business intelligence pertaining to incentive compensation. This information helps with strategic decision-making to improve sales performance and maximize the return on investment.

Need to Select the Best Commission Automation Software

Selecting the best commission automation software is extremely crucial for any organization looking to improve its sales performance. Any lapse in judgment can not only deprive the company of all the benefits but could also adversely affect employee performance. Some of the things that can go wrong in such a situation can be identified:

  • Losing out on talent: - Without a suitable compensation and incentivization process in place, it will be difficult for companies to hold on to best-performing employees. A suitable commission automation software can certainly help an organization hire and retain the best talent by automating the administration and accounting of incentive plans.
  • Outdated data: - In competitive markets, access to real-time data is crucial for making accurate decisions. In the absence of automation software, there are chances that data is not updated in real-time. Decisions based on outdated data are less likely to be as effective as decisions based on updated data.
  • Difficulty in Audit: - In the absence of commission automation software, the process of sales audit can turn out to be lengthy and time-consuming. A suitable commission software would help create audit trails for all sales transactions and deliver real-time visibility across the organizations.
  • Calculation errors: - Any errors in calculating or paying commissions can lead to employee dissatisfaction, further resulting in a lack of motivation at work. In the absence of commission automation software, ensuring consistent and accurate commissions will always remain a challenge.
  • Higher costs: - Businesses will be compelled to depute enough human resources to handle every task in the remuneration and incentivization function in the absence of software. This will not only increase the administrative costs but would also increase the likelihood of any mistakes affecting the compensation process.

Selecting the Best Commission Automation Software

The key to selecting the best sales commission software is determining how closely the capabilities of the vendor align with your requirements related to sales compensation structures. There are always the standard steps in selecting any software, like looking for multiple vendors and comparing features, but the selection of a sales automation software is not that simple. You must check for some key features to determine their compatibility with your organization.

Here are some important tips to help you select the best sales automation software for your business.

  • Check for integrations

    The commission automation software should offer seamless integration with your existing tech stack. Any incompatible software would otherwise require heavy investment in upgrading the existing systems. On top of that, the platform must offer flexible options for data inputs through custom data mapping structure. Another desirable feature is to have seamless integration with payment systems to process the commission data quickly.
  • Support for Commission Plan Administration

    The sales automation software should allow you to create customized commission plans without any need for programming skills. Additionally, the tool must support the creation of multiple commission plans for different salespersons. There must also be a provision to override automatic calculations by making desired changes to the input data.
    While not necessary, it is desirable to have the option of running payout simulations to test the proposed incentive plans before finalizing. This will help fine-tune the commission plans for better accuracy. It will also be beneficial if the platform supports a ticketing system where individuals can raise queries and the authorized personnel can revert whenever possible.
  • Detailed Reports

    It is essential that commission tracking software offers detailed reports and sports a comprehensive dashboard for the convenience of the decision-makers. Managers must be able to check individual performances based on parameters like quota terms or plans to make timely decisions. Some of the desirable features here are,

   ▪   Payee dashboards offer real-time access to data like commissions earned, quota allocated, prospective earnings, and more.

   ▪   Detailed commission statements with updated information on possible payouts based on prospective deals.

   ▪   Regular notifications must be shared with salespersons, updating them on their performance.

   ▪   Salespersons should be able to have access to details of the commission plan and calculation methodology

  • Comprehensive Administrative Functionalities

    A sales compensation software must offer comprehensive administrative functionalities to enable managers to leverage its different features. This includes,

   ▪   Superior privacy controls and audit logs.

   ▪   Separate role-based controls for different levels of management.

   ▪   Comprehensive team management tools.

   ▪   Options to define hierarchy relationships.

   ▪   Multi-channel support

  • Customer Care Support

    For any software solution to deliver the desired results, having a robust customer support system is essential for a vendor. In the case of sales commission software, this need is amplified further due to the high stakes directly related to the future of the company.
    The vendor must offer round-the-clock customer support, including on-site and off-site services, to address all sorts of issues. This will relieve the company of all worries related to the performance of the software and always ensure higher productivity.

    Sales commissions and incentives are extremely important for a motivated workforce and must not be taken lightly. As per Gallup, highly motivated teams show 21% higher profitability. So, instead of slogging it out for hours manually, you must consider investing in sales automation software. Though, it is important to allocate adequate time for comparing different software packages to identify the one with all desirable features.


Q1. What is commission automation?

A1. Commission automation is the process of integrating commission automation software with the existing systems to automate all tasks related to the administration of commission and incentive plans. This helps reduce the chances of errors and time taken when these tasks are completed manually.

Q2. What is a commission management system?

A2. A commission management system or a sales commission system is software designed to assist managers with tracking the commissions and incentives earned by salespersons over a specified period of time.

Q3. How do you track sales commissions?

A3. Earlier, sales commissions were tracked with the help of tools like Excel, but now most organizations use commission automation software to help track commissions accurately.

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