Sales Performance Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Sales Performance Management Market Analysis

The sales performance management market is expected to register a CAGR of 15.2% over the forecast period. Sales performance management refers to a set of operational and analytical services that aid in the automation and integration of back-office sales operations. Among other aspects of sales performance, it focuses on forecasting, insights, gamification, quota setting, and advanced analytics. Account segmentation, territory planning, incentive compensation, standard reporting, and pipeline optimization also exist. Organizations are using SPM tools and approaches throughout the globe to increase operational efficiency and effectiveness.

• Organizations are rapidly growing and transforming their entire environment into a digital platform. So, to empower their growth and accelerate the enterprise's acceleration in the rapidly changing market circumstances, organizations are using SPM software, which assists them in establishing a business roadmap and implementing their plans much more efficiently. SPM offers an organized and transparent solution between the organization and its personnel.
• Various organizations utilize sales performance management to reduce processing time and error at a significant rate. ​The active and effective management of performance payouts and incentives has significantly driven the demand in the SPM market. The growing demand for accurate measurement and tracking of sales metrics and mitigation for IT staff may drive market growth over the forecast period.​
• Increasing audit, compliance, and visibility requirements boost the market's growth. There is an increased need for oversight in sales performance management. There is a growing desire to scrutinize the inner workings of the compensation system and the related processes.
• However, the risk of damage and theft of recorded data would hinder the growth of the sales performance management industry. Furthermore, the market would face challenges due to a need to understand SPM solutions' benefits. Another reason obstructing the development rate of sales performance management is the reluctance of small and medium-sized organizations to invest in costly business process software and technological obstacles.
• The onset of the COVID-19 pandemic has forced many sales teams to operate remotely, changing the way they provide value and engage with buyers without in-person interaction. This shift has resulted in an increased demand for the adoption of SPM. After the pandemic, the market is growing positively, owing to increased digital penetration.

Sales Performance Management Industry Segments

Sales performance management (SPM) is a suite of operational and analytical functions that automate and unite back-office operational sales processes. SPM is implemented to improve operational efficiency and effectiveness.

The sales performance management market is segmented by deployment (on-premise, cloud), solution (incentive compensation management, territory management, sales monitoring and planning, sales analytics, and other solutions), end-user vertical (BFSI, manufacturing, energy and utility, healthcare, IT and telecom, and other end-user verticals), and geography (North America, Europe, Asia-Pacific, and Rest of the World).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

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Sales Performance Management Market Trends

Increasing Demand for Sales Mobility Driving Market Growth

• Next-generation mobility solutions would automatically enter client meeting information into CRM and even send and track follow-up emails after the meeting. By adding the details of a specific meeting to the CRM in the blink of an eye without the hassle of logging in from a home office later or messing up the data added to the system, sales teams can keep a full and accurate account of customer interactions while minimizing time spent on administrative tasks.
• Furthermore, the advent of audio-video conferencing application programming interfaces to promote personalization and productivity would expand the market's favorable potential. Furthermore, rising demand for lowering the risk of sudden sales and proper pattern forecast would function as market drivers, increasing the growth rate of the sales performance management market.
• Machine learning and artificial intelligence (AI) applications boost the sales teams' efficiency. Today's platforms may make specific recommendations to salespeople, such as what materials and content they should use to advance a sales scenario or who they should follow up with at key phases of the sales process. AI can also assist each rep in learning from the highest performing colleagues on their team and guiding them to achievement when in front of their client. AI enables sales teams to perform better by providing them with a personal assistant to support them daily.
• According to a survey conducted by Algorithmia, the top artificial intelligence and machine learning use case last year, at 57%, is improving customer experience. Machine learning and artificial intelligence can assist in advancing a range of business operations.
• Many sales teams still utilize laptops for customer-facing presentations, which may be inconvenient. It frequently necessitates Wi-Fi connectivity within the customer's workplace, powering up a PC before the presentation, connecting to the conference room projector or TV, and so on. In today's advanced mobile landscape, firms would empower sales personnel to deliver customer presentations using their phone or tablet. Furthermore, there is no justification for content rendering difficulties or display controls on mobile devices with modern software.

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