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SCM and CRM Integration

While Customer Relationship Management (CRM) and Sales Compensation Management (SCM) systems focus on different business processes, Glocent’s SCM works with your CRM system to align employee behavior with corporate objectives and improve relationships between your employees and your customers.

Large businesses, with complex sales systems, need a sales incentive compensation management tool that can work with their existing customer relationship management system in order to drive sales. Glocent collects unlimited amounts of data, including CRM data, through its proprietary Data Loader.  This positions Glocent to become a true source of record, and a necessary tool to reconcile your CRM information with actual sales transactions.  The result, is complete accuracy and transparency into the sales process.  With that achieved, employee behavior can be accurately monitored; sound objectives can be established and pursued; and customers are better supported.

CRM Products Are Not SCM Products

Many CRM software products promise to automate every business process found within your company’s sales operation. Unfortunately, many of these solutions neglect important processes like sales incentive compensation and Sales Transaction Intelligence (STI) analysis. If features for incentive compensation are included at all, they are often limited to extracting summarized sales information; and sales incentive calculations are performed with other software or by using spreadsheets.

Many CRM product developers, and many sales teams, don’t fully understand that SCM processes directly affect a company’s bottom line. With Glocent, organizations can avoid:

  • Over payment of commissions
  • Commission disputes
  • Sluggish sales caused by distracted sales people
  • High administrative costs
  • Sales reps “gaming” the system

The effects of outdated SCM solutions don’t stop at profits, either. Confusing or inconsistent sales incentive systems cause distrust and distraction in sales teams, and leads to sluggish sales.  When sales teams don’t trust their employer to accurately compensate them for their efforts, they will waste a lot of time performing their own “shadow accounting” double checking their commissions and challenging the calculations when that time could be spent on new sales efforts. Also, when sales people discover that they can “game” the system, they are tempted to put less effort into the hard work of making new sales and instead spend more time creating the “appearance” of hard work by gaming the system.  Improper incentive compensation leads to slower sales, a demotivated sales team and damaged relationships between your company and your customers. It also directly impacts your bottom line.

A lack of trust and motivation in a sales department can also cause problems internally. The self-reporting, or shadow accounting, common to outdated SCM solutions like spreadsheets can also lead to inaccurate financial reports. In the post-SOX Act business world, financial transparency in large public corporations is vital, and companies can’t afford to have inaccurate internal audit documentation. While a CRM solution may provide some internal audit capability, only an automatedSCM system, focused on accurate STI can provide truly reliable reporting.

Transparency at the speed you do business!