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A00692 | Pages: 352 | Charts: 69 | Tables: 234 |
The global sales performance management market size was valued at USD 1.8 billion in 2021, and is projected to reach USD 7.4 billion by 2031, growing at a CAGR of 15.2% from 2022 to 2031.
The growing market competition and the demand for work from home and remote working policies during the period of the COVID-19 pandemic aided in propelling the growth of the global remote and automated sales performance management solutions during the period, hence empowering the demand for sales performance management solutions. Moreover, the sudden economic imbalance and large corporations increasing their market share during the period positively impacted the need for sales performance management industry.
However, data privacy and sharing risks associated with third-party sales performance management solutions and services can hamper the sales performance management market forecast. On the contrary, the integration of advanced tools such as machine learning and data analytics with sales performance management solutions suites are expected to offer remunerative opportunities for expansion of the sales performance management market during the forecast period.
Sales performance management (SPM) solutions are a collection of operational and analytical functions that automate and integrate back-office operational sales operations in order to increase operational efficiency and effectiveness. Incentive compensation management, quota management and planning, territory management, advanced analytics, and gamification are some of the SPM capabilities.
The sales performance management market is segmented on the basis of component, deployment model, enterprise size, solution type, industry vertical, and region. On the basis of component, the industry is divided into solution and service. Depending on deployment model, the market is classified into on premise and cloud. Based on enterprise size, the market is bifurcated into large enterprises and SMEs. Based on the solution type the market is divided into incentive compensation management, territory management, sales planning and monitoring, sales performance analytics and reporting, and others. The industry vertical covered in the study include BFSI, IT and telecom, manufacturing, energy and utilities, healthcare, retail, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the sales performance management market analysis are Anaplan Inc., beqom, Callidus Software Inc., Confidex, Gryphon Networks Corp, Iconixx, NICE Ltd., Obero Inc., Optymyze, Oracle Corporation, Salesforce Inc., SAP SE, Spotio, Telensa, Varicent, Velocify, and Xactly Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Depending on industry vertical, the BFSI segment dominated the sales performance management market share in 2021, and is expected to continue this trend during the forecast period owing to the large size of sales teams being maintained by BFSI sector businesses, which are incentivizing banking and financial forms to invest in effective sales performance management solutions for their organization. However, the healthcare segment is expected to witness the highest growth in the upcoming years, owing to the rising technological investments and upscaling of the sector, which is expected to aid in driving investments in sales performance management solutions.
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Region wise, the sales performance management market was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to its high concentration of sales performance management solutions vendors. which is expected to drive the market for sales performance management solutions within the region during the forecast period. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the rapid economic and technological transformation of the region, which is expected to fuel the growth of sales performance management solutions in the region in the coming few years.
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The report focuses on growth prospects, restraints, and analysis of the global sales performance management market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global sales performance management market share.
The sales performance management market growth is attributed to factors such as a rise in demand for improved customer targeting and customer acquisition tool, sales incentives management, and leads management solutions, which boosts the growth of the sales performance management tools. In addition, growing technological advancements is creating several growth opportunities as it is helping organizations by providing an accurate picture of their customers, which is very important for an effective sales and marketing strategy.
Furthermore, it enables businesses to identify sales triggers and present their offers to customers at the right time with the most convincing sales arguments. In addition, sales performance management tools can help businesses to optimize their sales teams and increase their output, which, in turn, drives the growth of the SPM market.
Data enrichment tools of sales performance management platforms can help business enterprises to optimize their sales data with new possibilities for their marketing and sales campaigns and improve customer targeting. In addition, data-enriching tools help businesses to clean their data and keep the enriched list of accurate and usable data on consumers and sales performance. Furthermore, as content optimization is gaining importance in the corporate business world, enterprises are investing in sales optimization solutions, driving the sales performance management industry.
According to an article published by Ahrefs Pte Ltd., in June 2020, more than 68% of all online experiences begin with a simple search. Thus, content optimization is one of the best ways for business pages to rank well on search engines. In addition, content optimization tools help pick the right topics and hit relevant keywords for content, contributing to empowering the sales and marketing strategies of an organization.
The global COVID-19 pandemic has drastically affected businesses across the world. It has positively impacted the adoption of sales performance management solutions due to the lockdown imposed by governments of different countries. Post COVID-19 situation, companies are focusing on emerging technology such as AI-powered solutions, automation, and cloud-based sales performance management (SPM) solution across industries such as BFSI, healthcare, and IT & telecom to perform contactless operations. This factor further creates demand for sales performance management (SPM) solutions, which drives the global adoption of the sales performance management market.
Furthermore, as industries are moving toward digitalization, it is creating the demand for SPM software, as it provides agile efficiency by eliminating manual tasks that slow down business operations as well as provides real-time reporting features. In addition, it reduces human errors and business risks that come with manual data entry, such as required copying and pasting data from one invoice into various spreadsheets for multiple businesses. Due to such benefits, it provides lucrative growth opportunities for market growth during the forecast period.
Moreover, the pandemic has introduced considerable challenges for companies, which are trying to execute key processes, report accurately with data spread over multiple locations, operate complex systems, and efficiently communicate with teammates; particularly where there is no infrastructure for such processes. Hence, a greater number of companies are investing in sales performance management. Furthermore, sales performance management solution provides limitless scalability and continual enhancement of functionality, which are critical in accomplishing digital transformation, thus boosting the SPM market growth post-pandemic.
Key Market Segments
Key Market Players