Some Actual Glocent ROI Client Benefits

Case 1 – Eliminated fourteen full-time positions
Prior to implementing Glocent, the client employed fourteen full-time employees whose sole responsibility was to administer incentive payments. Glocent streamlined the process so effectively that only one employee was tasked with managing the entire process. Since the redundant positions included both business analysts and programming engineers, the client was paying approximately $113,000 a month to manage the hundreds of thousands of transactions being processed for incentive calculations. The reduction of overhead costs and incentive over payments created an immediate return on the client’s investment.

Case 2 – Improved dispute process
When a commission dispute surfaced under the manual process, the client’s sales rep would either contact her manager or report it directly to the commission administrator. Once it was reported, the dispute was researched by the administrative staff to determine why a sale did not receive a commission, or a reduced commission, and reported back to the sales rep. If the commission was not included because of error, the administrator would make the necessary adjustments, sometimes during the following commission cycle. After Glocent was implemented a new, more efficient on-line dispute resolution process was developed. The application contained enough detailed data regarding the sales transactions that the rep was able to clarify and resolve any issues that disputes rarely surfaced. If one occurs now, it is the reps responsibility to fill out an on-line form that demonstrates that all activities related to a sale have been completed. The vast majority of the time, the sales rep discovers that something in the required process was not completed; a credit check was not done, the account is not current, etc. The new process reduced the administrative costs by providing greater back up information to the sales reps and shifting the responsibility to settle disputes to those who made the sale. 

Case 3 – Reduced effort to prepare for commission calculations
Since Glocent is designed to allow the user to make changes to sales plans, product definitions and other variables in a short period of time, the preparation needed to run each commission cycle is reduced. As a result, there is more time available to initiate the cycle, allow the reps to review the payment details and resolve disputes. As a result, the commission data is sent to the payroll system much sooner than was previously possible.

Case 4 – Eliminated errors due to process flaws
As the Client uses the system over an extended period of time, many types of calculation errors are uncovered. Some are as straightforward as commission overpayments. The challenge lies in determining the cause of these overpayments, which can affect a large majority of the sales force. In one instance during the first reconciliation of Glocent with a former process, it was discovered that the majority of the discrepancies were tied to a single process of identifying out-of-territory sales. Many of these types of errors go undetected because they are nested inside very complex Excel formulas several hundred characters in length.

Case 5 – Allowed restructuring of commission structure to RGUs
After the Client became confident in Glocent’s accuracy, it decided to test its flexibility by changing its entire commission strategy. Rather than base commissions on products, it converted the measurement to a “value of sale” model. This allowed the client to combine products and services in a completely different manner and thereby commission their sales from an entirely new strategy. When asked how they would have converted to the new approach if they still used spread sheets, the response was, “We couldn’t have done this using spreadsheets.” Glocent has allowed an entirely new philosophy to influence the incentive management process.