October 11 by Sarah Van Caster
Nucleus Research is an industry-leading information technology research firm that specializes in investigative research and return on investment (ROI) analysis of technologies. Recently, Nucleus evaluated Apttus Incentive Compensation (ICM) in the context of how ICM solutions add value to enterprise application suites. The research study uncovered three key findings:
Incentive Compensation Management ROI
1. Companies can use Apttus Incentive Compensation Management to design, execute, and manage sales incentive programs and embed them throughout the Apttus Quote-to-Cash (QTC) suite, which connects to any Customer Relationship Management (CRM) platform.
Nucleus analysts Kelsey Anspach and Rebecca Wettemann explain, “Apttus ICM is built on the Apttus Intelligent Cloud, which is an end-to-end QTC solution that also includes Configure Price Quote (CPQ), Contract Lifecycle Management (CLM), omnichannel e-commerce, and billing, deal and order management.” Apttus combines these applications on a single platform, which operates under a common data model through a single, intuitive user experience. Apttus ICM provides value for anyone already invested in a CRM solution, regardless of the CRM provider.
“Our data shows edge applications such as quote-to-cash and incentive compensation delivers 4.2 times the ROI of core CRM, Apttus’ unique approach of a common data model and integration of incentive comp and quote to cash on the same platform further extends edge CRM value by allowing companies to embed incentives throughout their business processes.”
Rebecca Wettemann, Vice President, Nucleus Research
2. Apttus ICM solution for enterprises extends the value of CRM applications.
Nucleus found that applications like Quote-to-Cash and Incentive Compensation, “deliver 4.2 times the ROI of core CRM implementations”. By integrating QTC and ICM applications on the same platform, under a common data model, Apttus further extends the value of CRM by allowing companies to embed incentives throughout their business processes. Often, ICM is leveraged as a means to drive user adoption of CRM solutions because it provides salespeople access to highly motivating information concerning their economic self-interests, including estimated commission, current attainment and earnings data.
3. Apttus ICM provides better data for smarter selling and more transparency for driving business outcomes.
The report also explains the unique value in Apttus’ approach: “With Apttus ICM, the Apttus Intelligent Cloud combines all QTC data that normally remains separate into one source, including pricing, product configuration, quoting, and commission data – all gathered consistently throughout the QTC process. Apttus integrates this information under a common data model, allowing users to perform analytics.” Nucleus sees the value of such analytics in the QTC process in two main ways: 1) Intelligent pricing and configuration and 2) Targeted sales coaching.
Apttus ICM also provides critical visibility and transparency for sales teams, enabling companies to make more informed decisions about which incentive techniques impact selling behaviors. Nucleus expects, “the transparency available in Apttus ICM will drive increased productivity for both sales representatives and sales managers.” Apttus ICM helps focus and align the actions of sellers and motivates performance with visibility to attainment, potential payouts, and earnings.
Apttus also brings innovation to analytic capabilities, going beyond traditional reporting and business intelligence, to apply artificial intelligence, notably machine learning, to processes. Data-driven intelligent recommendations can be generated for key concerns like pricing guidance, cross-selling and upselling, and on contractual concerns (like clause recommendations). Such analytic capabilities also provide data and insights to better inform incentive compensation and promotions strategies.
The full Nucleus Research paper is available complimentary from Apttus. Download it now.