SOURCE: Callidus Software Inc.

September 09, 2008 07:00 ET

Ventana Research Reports Investing in Sales Performance Management is Mission Critical

Benchmark Research by Leading Analyst Firm Confirms Sales Performance Management Solutions Are Necessary to Increase Business Success

SAN JOSE, CA--(Marketwire - September 9, 2008) - New benchmark research by Ventana Research emphasizes the rising need for companies of all sizes to invest in their sales performance management (SPM) solution. The white paper version of the benchmark research "Improving the Performance of Sales Organizations to Maximize Strategic Value" is available for free download from the website of Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management. The research offers valuable information for companies looking to improve their overall sales performance management and examines the maturity of people, processes, information and technology needed for effective execution and management.

Download the white paper of the benchmark research at or listen to the on-demand webcast at

The benchmark research showed that while 79% of participants find sales performance very important, 59% are not confident with their current sales performance management practices. More than half of the participants felt that increasing accuracy of sales metric is mission-critical to their business. The research found that unfortunately, accuracy is hindered by scattered information, inconsistent execution and lack of process. All of which researched as main problems in improving sales performance by participants.

There are applications designed to specifically manage sales performance to avoid these obstacles. However, Ventana Research found that spreadsheets are still the most common method used to manage sales compensation. Yet, 47% of participants admitted experiencing challenges when using spreadsheets. This is because spreadsheets lack accuracy, ease and are prone to errors.

"Most organizations do not realize the benefits that valuable sales performance management applications can provide," said Mark Smith, CEO & EVP Research at Ventana Research. "Our research documents a solid handle on managing elements of sales performance, like compensation, incentives and quotas is mission-critical for businesses. One consolidated system can resolve the majority of the problems organizations have with their sales performance management. If businesses want to be successful, gain a competitive edge and ultimately increase revenue, sales performance management must be an investment priority."

Participants of the benchmark research stated that the top two sales compensation management capabilities to improve are visibility on progress sales forecast goals (49%) and the ability to determine individual sales representative performance (44%). The top two design and tracking capabilities requested by participants were accurate calculation of sales commissions (36%) and performance-improving design of sales incentives to achieve business goals (31%). These metrics are complex and nearly impossible to calculate when managing numbers on a spreadsheet. These key functionalities can accurately be provided by today's best-of-breed SPM software.

With competition rigorously increasing, companies are more open-minded about different approaches to sales performance management systems. While half of the participants were partial to traditional on-premise sales performance management applications, 27% were open to using on-demand systems. Only 7% were interested in applications hosted by a third party.

Research also indicates that leadership and sponsorship are crucial for organizations to successfully adopt sales performance management. The most important factor in making a successful business case for SPM software is executive sponsorship (45%). Further, resource availability (42%) and ensuring knowledge of value (38%) play a significant role in sales performance management success.

Of the 217 qualified organizations in this research, 84% were from North America, 8% from Europe and 8% from the rest of the world. Companies ranged from manufacturing, retail, banking, pharmaceutical and other major industries.

About Callidus Software®

Callidus Software ( (NASDAQ: CALD) is the market and technology leader in Sales Performance Management (SPM). Performance-based compensation is one of the largest investments for all companies. Callidus' customers gain a competitive advantage by maximizing the return on this strategic asset. Our award-winning Software-as-a-Service (SaaS) applications set the standard for pervasive performance management across the enterprise. Over 1.9 million employees and channel partners have their performance managed by Callidus Software.

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