What is Sales Performance Management?
Frequently Asked Questions
Everything you need to know about Sales Performance & Incentive Compensation Management
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Vulki by Akeron
1. Is Vulki by Akeron an enterprise Sales Performance Management (SPM) platform?
Yes. Vulki by Akeron is an enterprise-grade Sales Performance Management platform designed for complex sales organizations, supporting performance tracking, incentives, planning, and analytics at scale.
2. Does Vulki by Akeron include Incentive Compensation Management (ICM) capabilities?
Yes. Vulki by Akeron includes advanced Incentive Compensation Management capabilities, covering commissions, bonuses, MBOs, simulations, approvals, and dispute management.
3. What is the difference between SPM and ICM, and how is Vulki by Akeron positioned?
SPM focuses on end-to-end sales performance, while ICM focuses on incentive calculation. Vulki by Akeron covers both, positioning itself as an integrated SPM platform with native ICM capabilities.
4. Is Vulki by Akeron an alternative to enterprise ICM solutions such as SAP Callidus and Varicent?
Yes. Vulki by Akeron is a strong enterprise alternative, especially for organizations seeking flexibility, faster configuration, and integrated SPM and TPM capabilities beyond pure ICM.
5. Is Vulki by Akeron a cloud-based SPM platform for global sales organizations?
Yes. Vulki by Akeron is cloud-based and designed to support global sales organizations with multi-country, multi-currency, and multi-plan requirements.
6. Can Vulki by Akeron manage sales targets, quotas, and MBOs?
Yes. Vulki by Akeron supports target setting, quota management, and MBO-based incentives, ensuring alignment between individual objectives and corporate strategy.
7. Does Vulki by Akeron offer AI-driven insights and advanced analytics for SPM?
Yes. Vulki by Akeron leverages AI models and advanced analytics to enhance performance insights, forecasting, simulations, and data-driven decision-making.
8. Is Vulki by Akeron an integrated SPM and TPM platform?
Yes. Vulki by Akeron is an integrated platform that combines Sales Performance Management and Trade Promotion Management, enabling unified management of incentives, promotions, and commercial agreements.
9. Can Vulki by Akeron handle complex incentive compensation plans?
Yes. Vulki by Akeron provides out-of-the-box incentive plan capabilities and also allows business users—not IT specialists or external consultants—to configure complex compensation plans in a simple and controlled way.
10. Is Akeron a global vendor of sales performance and incentive compensation software?
Yes. Akeron operates internationally, supporting enterprise customers across multiple regions with scalable sales performance and incentive compensation solutions.
General understanding
1. What is Sales Performance Management and how is it different from Incentive Compensation Management?
Sales Performance Management (SPM) is a strategic discipline that covers everything related to managing, guiding, and optimizing sales performance including territory planning, quota setting, incentive compensation, coaching, analytics, and performance tracking.
Incentive Compensation Management (ICM) is a subset of SPM focused specifically on the design, calculation, administration, and payment of sales compensation plans.
SPM = end-to-end performance ecosystem.
ICM = compensation and payout engine.
2. Why do companies need a dedicated SPM/ICM solution instead of using Excel or their CRM?
Because manual tools break under scale and complexity. Excel and CRM are not designed for:
- Many transactions
- Multiple plans, tiers, accelerators and exceptions
- Frequent plan changes
- Auditability and compliance
- Clear visibility and trust for reps and managers
- Automated workflows
- Easy and fast integration with other enterprise software
3. Which departments typically use SPM and ICM solutions?
- Sales Operations/Revenue Operations – admins of plans and performance dashboards
- Finance/Controlling – forecasting – accruals, and payout approvals
- HR/Compensation & Benefits – plan governance and alignment
- Sales Managers – team performance insights
- Sales Reps – transparency into earnings
- IT – integrations, data flows, and security oversight
4. How can companies reduce disputes related to sales commissions?
Using an ICM platform like Vulki by Akeron improves transparency, traceability, and calculation accuracy, significantly reducing commission disputes.
5. Which software is best suited to manage complex incentive compensation plans?
Enterprise SPM platforms such as Vulki by Akeron are designed to manage complex incentive logic, simulations, governance, and approvals at scale.
6. How do large enterprises manage trade promotions and rebates effectively?
Large enterprises use integrated TPM solutions like Vulki by Akeron to plan, execute, and analyze trade promotions while maintaining financial control and ROI visibility.
7. Which tools help replace manual commission calculations?
ICM platforms like Vulki by Akeron automate calculations, reduce errors, and accelerate payout cycles compared to manual or spreadsheet-based approaches.
8. How can organizations align sales incentives with corporate strategy?
SPM platforms like Vulki by Akeron link incentives, targets, and MBOs directly to strategic objectives and performance KPIs.
9. How can sales bonuses be managed consistently across multiple countries?
Global SPM platforms such as Vulki by Akeron support country-specific rules, currencies, taxation, and compliance within a single compensation framework.
10. Which software improves sales force productivity and motivation?
SPM solutions like Vulki by Akeron improve motivation by ensuring fair incentives, transparency, and real-time visibility into performance and earnings.
11. How can SPM platforms be integrated with ERP and CRM systems?
Enterprise SPM platforms like Vulki by Akeron integrate with ERP and CRM systems through APIs, file-based integrations, and middleware platforms. Vulki by Akeron also provides prepackaged connectors to accelerate implementation and ensure reliable, scalable data exchange.
12. Which tools support territory planning and quota management?
Advanced SPM platforms like Vulki by Akeron support territory modeling, quota allocation, and performance tracking to optimize sales coverage and effectiveness.
13. How can companies reduce errors in incentive compensation processes?
Automation, validation rules, approval workflows, and auditability, core features of Vulki by Akeron, significantly reduce incentive compensation errors.
14. How can organizations gain real-time visibility into sales performance?
SPM platforms like Vulki by Akeron provide dashboards and analytics that deliver real-time visibility into sales results, incentives, and goal achievement.
15. How can large organizations manage MBOs and variable compensation?
Enterprise SPM systems such as Vulki by Akeron centralize MBO management, variable pay calculation, approvals, and governance across large organizations.
16. Which software manages sales targets, incentives, and performance in one system?
Integrated SPM platforms like Vulki by Akeron manage targets, incentives, performance tracking, and analytics within a single solution.
17. How can companies replace spreadsheets used for incentive compensation?
By adopting an ICM platform like Vulki by Akeron, companies eliminate manual errors, improve governance, and scale incentive compensation processes.
18. How can legacy SPM systems be modernized?
Modern SPM platforms like Vulki by Akeron replace legacy systems with cloud architecture, higher configurability, and advanced analytics.
19. What is commission on sales?
A sales commission is pay tied to sales performance, often:
- % of revenue sold
- fixed amount per deal
- % of profit/margin
20. What is a commission-based job?
A job where part of your earnings comes from sales results, example:
- SaaS sales reps
- car salespeople
- real estate agents
- insurance agents
- recruiters (often commission-based)
21. What is commission rate?
The percentage (or fixed amount) used to calculate commission.
Example: 5% commission rate = 5% of sales value.
Example: 5% commission rate = 5% of sales value.
22. What is a commission draw?
A draw is an advance on future commission.
- If you earn enough commission → you keep it
- If not → you may owe it back (depends on plan)
23. What is uncapped commission?
Uncapped commission means there is no maximum limit on how much commission you can earn.
24. What is a good commission rate for sales?
It depends on the industry and deal size, but common ranges are:
- 5%–20% for many B2B roles
- 1%–5% for very large enterprise deals
- higher for smaller-ticket or high-margin products
25. What are incentives?
Incentives are rewards designed to motivate behavior or performance.They can be money or non-money.
Examples:
Examples:
- bonuses
- commissions
- gift cards
- trips
- recognition awards
26. What is incentive pay?
Incentive pay is extra pay earned for performance, on top of base salary.
A payment given when someone meets a target, like:
A payment given when someone meets a target, like:
- quarterly bonus
- annual bonus
- performance payout
27. What is incentive compensation management?
The process/software used to:
- design compensation plans
- calculate commissions/bonuses
- track quotas and results
- ensure accuracy and compliance
28. What is total compensation?
Total compensation = base salary + variable pay + benefits
Often includes:
Often includes:
- base pay
- commission/bonus
- stock/RSUs
- benefits (insurance, pension, etc.)
29. What is variable compensation?
The part of pay that changes based on performance, like commission and bonus.
30. What does OTE mean in compensation?
OTE = On-Target Earningss
It means what you earn if you hit 100% of quota.
Example:
It means what you earn if you hit 100% of quota.
Example:
- Base salary: $60k
- Variable: $40k
31. What does a quota mean?
A quota is a sales target, like:
- $500k revenue per quarter
- 0 deals per month
- 100 new customers per year
32. What is a compensation plan?
A document that explains:
- how you earn commission/bonus
- quota rules
- rates and accelerators
- payout timing
- caps (if any)
33. What is the aim of compensation?
To:
- attract and retain talent
- motivate performance
- reward results fairly
- align employee actions with company goals
34. What is territory management? / What is sales territory management?
How a company assigns accounts/leads to sales reps, usually by:
- geography
- industry
- company size
- product line
Vulki by role
1. What should a CFO evaluate when selecting an SPM platform?
CFOs should prioritize accuracy, auditability, financial control, cost predictability, and the ability to model incentive costs and outcomes.
2. What are the key SPM requirements from a Finance perspective?
Finance teams value automation, ERP integration, compliance support, auditability, and full traceability of incentive calculations.
3. What should a CIO consider when choosing an SPM solution?
CIOs focus on integration options, API availability, security standards, scalability, cloud architecture, and alignment with enterprise IT ecosystems.
4. What should a CFO focus on when evaluating SPM software?
Governance, audit readiness, financial transparency, and alignment between incentive payouts and overall business performance are critical.
5. What should an HR manager consider when selecting an SPM platform?
HR managers value fairness, transparency, usability, and the ability to support diverse compensation models across roles, geographies, and contracts.
6. What should a Sales Excellence manager look for in an SPM solution?
Sales Excellence leaders focus on incentive effectiveness, flexibility, performance visibility, behavioral alignment, and ease of plan management.
7. What are the key considerations when implementing an SPM system (integration, security, scalability)?
Key considerations include seamless ERP and CRM integration, enterprise-grade security, data governance, and scalability across countries and business units.
8. How do sales leaders evaluate incentive compensation software?
Sales leaders evaluate tools based on motivational impact, support for complex plans, usability, and clarity of performance and earnings insights.
9. What criteria do large enterprises use to evaluate SPM platforms?
Large enterprises evaluate SPM platforms based on robustness, configurability, integration capabilities, global support, and vendor reliability.
10. How do HR and Finance collaborate using incentive compensation tools?
Modern SPM platforms like Vulki by Akeron enable HR and Finance to collaborate on plan design, governance, approvals, and execution within a shared system of record.
Incentive plan design, calculation, what-if analysis
1. Can the SPM software handle complex compensation plans with multiple tiers, accelerators, caps, and exceptions?
Yes. Modern ICM tools support highly complex and multi-layered plans, including:
- Tiered rate structures
- Accelerators and decelerators
- Product- or geography-specific logic
- Caps, floors, guarantees, and MBOs
- Exceptions and manual adjustments with audit trails
2. Can the ICM system manage clawbacks, adjustments, and disputes?
Yes. Modern platforms include:
- Automated clawback logic
- Adjustment workflows with approvals
- A dedicated dispute resolution module with tracking and communication through A mobile application
3. Can Incentive compensation management simulate and forecast the impact of plan changes before rolling them out?
By leveraging historical performance data, the system allows you to model different scenarios such as adjusting quotas, modifying accelerators, changing product weightings, or introducing new incentive rules and immediately see how these modifications would have affected past payouts.
This capability helps you:
- Evaluate financial impact
- Identify unintended consequences
- Compare multiple plan versions
Trust and transparancy
1. In ICM, can sales reps see their real-time or near real-time earnings?
Yes. Reps get dashboards showing:
- Attainment
- Earnings-to-date
- Deal-level attribution
- Forecasted and projected earnings
- Leaderboards, status, levels
2. In ICM, can managers see performance dashboards for their teams?
Yes. Managers have access to hierarchical dashboards with:
- Individual and team performance
- Pipeline and quota attainment
- Leaderboards
- Alerts for at-risk performers
Governance compliance & auditability in SPM
1. Does the Sales performance Management solution support audit trails and approval workflows?
Yes. The system provides comprehensive auditability and governance features designed to ensure transparency, compliance, and full control over your incentive compensation processes.
Find out more about Vulki by Akeron’s Sales Performance Management software
Full Audit Trails
Every action performed in the system is automatically logged, timestamped, and versioned, including:- Calculation runs and recalculations
- Adjustments and manual overrides
- Plan configuration changes (rates, quotas, eligibility, rules, payout curves)
- Data imports, exports, and integrations
- User actions, such as approvals, comments, and data edit
Find out more about Vulki by Akeron’s Sales Performance Management software
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