IBM > Case Studies > Driving positive sales behaviors with increased insight into compensation

Driving positive sales behaviors with increased insight into compensation

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Customer Company Size
Large Corporate
Region
  • America
Country
  • United States
Product
  • IBM Incentive Compensation Management on Cloud
Tech Stack
  • Salesforce.com
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Productivity Improvements
  • Revenue Growth
Technology Category
  • Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
  • Construction & Infrastructure
Applicable Functions
  • Sales & Marketing
Services
  • Cloud Planning, Design & Implementation Services
About The Customer
United Rentals is a company that provides equipment rental services to construction and industrial sites, as well as government projects. The company's success depends on its ability to deploy the best people, equipment, and solutions to support these projects. On the front line of this effort are the company’s 1,300 salespeople, who need to offer customers the right combinations of products and services to meet their specific needs. The company recently underwent a merger which doubled the size of its sales team overnight.
The Challenge
United Rentals, a company that supports major construction, industrial, and government projects, faced a significant challenge when a merger doubled the size of its sales team overnight. The company needed a more efficient way to calculate and communicate commission on sales. The sales force had recently doubled in size as the result of a merger, and calculating the commission for all of the reps was becoming a major challenge. The company wanted to find a way to encourage positive sales behaviors, and one of the keys to this was compensation management.
The Solution
United Rentals adopted IBM® Incentive Compensation Management on Cloud, a solution hosted by IBM that automates all compensation calculations, manages adjustments and approvals via a set of sophisticated workflows, and cuts the monthly compensation process from a week down to just two days. Compensation calculations are now performed in near-real time, which means it is possible for reps to view their commission on each sale on a daily basis. Tight integration between the cloud-based IBM solution and Salesforce.com means that they can log into the compensation portal with a single click. This allows them to gain a near real-time view of how they are performing and what they need to do to hit their targets. It also provides complete transparency of how the calculations have been performed, giving them much more confidence in the results.
Operational Impact
  • Accelerates the monthly compensation process from one week to just two days
  • Boosts performance by tuning compensation programs to support sales objectives
  • Increases visibility, showing reps how sales behavior contributes to compensation
  • Sales managers and executives are able to analyze trends in compensation payments versus sales, and assess the effectiveness of each compensation program.
Quantitative Benefit
  • Reduced compensation process time from one week to two days

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