The sales performance management market was valued at USD 3193.7 million in 2020 and is expected to register a CAGR of 13.09% over the forecast period, 2021-2026. Sales performance management provides tools and information required by the sales representatives (ensures efficiency and accuracy). According to IBM, USD 1.4 million was saved through a 90% reduction in overpayments with incentive compensation management tools. It also resulted in achieving a 204% ROI.
- The increasing need for accurate measurement and tracking of sales metrics, early adoption of the technology, and mitigation for IT staff are expected to drive the market growth over the forecast period.
- The companies are demanding a customizable, streamlined, and flexible system to manage and offer analytics based on their sales performance, which is likely to boost the market growth over the next six years.
- Smartphones and tablets are increasingly incorporated as sales performance management components to easily offer the aforementioned facilities and ascend the functionality, which is projected to augment the market.
Key Market Trends
Manufacturing to Exhibit Significant Growth
- Global car sales grew by about 2.2% globally in 2017. The number of automotive sales accounted to about 20.9 million in Europe and 48.9 million in APAC/Middle East, an increase from 20.1 million and 46.9 million respectively in 2016. Owing to such an increase in the growth of car sales the sales structure has to be streamlined to ensure growth.
- Many markets, such as North America and Europe, have been closer to maturing, and sales in such highly competitive environments need SPM software to provide the employees with incentives and attain cost cutting insights.
- Electronics growth has also been on the rise globally, and the number of products in the market is also increasing. Many investments such as those from Apple and Amazon in India have further indicated the growth of such products in the market.
- Owing to such increase in the number of Stock Keeping Units (SKU), SPM solutions are further required to streamline sales for the company and differentiate product offerings with the help of tools, such as territory management and sales analytics.
- Consumer goods have also been increasing in their purchase. Many of the mature markets, such as North America, have a high competitive atmosphere, and the adoption of SPM solutions is expected to spur growth and streamline sales of a particular company.
North America to Hold Major Share
- North America is the largest economy in the world. The newly found investments from the National Outer Continental Shelf Oil and Gas Leasing Program (National OCS Program) for 2019-2024 in the United States are presenting new opportunities.
- The program is expected to allow offshore exploratory drilling in about 90% of the OCS acreage, which brings a positive outlook to all the secondary markets, like BFSI, logistics, and manufacturing in the region, increasing opportunity for the sales force to compete for providing required machinery and, in turn, increasing the demand for SPM.
- The region is well known as the hub for major consumer electronics and software giants in the world, like Google, Microsoft, SAP, and Oracle. These companies actively contribute to the demand for SPM in the region as they invoke severe marketing strategies to gain clients from all over the world.
The sales performance management market has gained a competitive edge in recent years. In terms of market share, few of the major players currently dominate the market. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and profitability.
- January 2019 - CDk Global Inc. announced a comprehensive and enhanced service model "Customer Success" designed to help dealers operate more effectively and build stronger relationships with customers while leveraging data to drive business improvements.
- February 2018 - NICE unveiled a new version of NICE Satmetrix NPX, the company's cloud-based customer feedback, and loyalty (CLS) solution. The release will deliver an end-to-end view of customer experience by unifying direct feedback from omnichannel surveys and indirect feedback from text or voice conversations with operational or behavioral data imported from a variety of other customer data sources.
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