Sales Performance Management Market

Global Sales Performance Management Market Size (2024 to 2029)

The global sales performance management Market share is expected to reach USD 5.67 billion in 2024 and USD 12.01 billion in 2029, growing at a CAGR of 16.2% during the forecast period.

Sales Performance Management is the process of planning, managing, and analyzing a company's sales performance through operational and analytical functions. This includes training and development, incentive compensation management, territory management, quota management and planning, advanced analytics, gamification, and monitoring sales representative progress.

Global Sales Performance Management Market Drivers:

The growing significance of sales productivity drives the demand for the sales performance management market. Data plays a major role in the strategy of contemporary sales teams, and to target the right customer base, sales teams use data enrichment tools that assist them in directing their sales efforts. The market share is also increasing due to technological advancements in data gathering and analysis, which are increasing the productivity of the sales department. The demand for the sales performance management market is expected to rise further in the forecast period due to proactive and efficient management of performance through rewards and incentives and a surge in the need for accurate measurement and tracking of sales metrics.

Global Sales Performance Management Market Restraints:

One of the major factors hindering the growth of the sales performance management market is the unwillingness of small and medium companies to invest in performance management products or solutions. Due to high acquisition costs and complexity in implementation associated with sales performance management solutions, especially for big companies with extensive sales processes, the market might restrict itself from expanding in the forecast period. With the sharp rise in data theft and breaches in critical systems, the adoption of performance management solutions is anticipated to be slow during the forecast period.

Global Sales Performance Management Market Opportunities:

The sales performance management market value is expected to flourish in the forecast period due to gaining traction towards technological advancements for better decision-making, sales data analysis, territory management, etc. Companies are moving towards automation and innovation by harnessing the benefits of artificial intelligence, machine learning, big data analytics, cloud-based products or solutions, and many more. Study results say that more than 60 percent of sales organizations by 2026 will employ technology in order to shift towards data-driven decision-making, which will streamline the sales process. For instance, in November 2023, Amazon became the first company to launch the Amazon Elastic Compute Cloud (EC2) Capacity Blocks for ML, a consumption model for carrying out their short-duration ML applications on highly sought-after GPU computing capacity. These changes in performance management with the latest technology are setting up new opportunities for the market.

Impact of COVID-19 on the global sales performance management market:

The COVID-19 pandemic had a positive impact, so the demand for sales performance management has significantly scaled up in the market. Businesses were forced to move their sales representatives to work remotely, which has changed how they interact virtually and provide value to customers. Industries such as BFSI, IT, telecom, healthcare, etc., concentrated on the upcoming technologies for seamless business operations. Covid-19 has brought a number of challenges and difficulties to the workplace. For instance, more than 40 percent of American and Canadian companies froze recruitment, and employers around the world applied pay cuts, i.e., around 30 percent, while more than 40 percent chose to freeze salaries, and more than 35 percent decided to cut bonuses. As a result, stress levels among the employees skyrocketed, which ultimately affected the sales performance of the organization. Companies employ employee performance management systems. Still, to a limited extent, they could not afford to invest in modern and advanced sales performance management solutions due to budget constraints. This opened new opportunities in the sales performance management market to expand its reach and market share in the forecast period.

GLOBAL SALES PERFORMANCE MANAGEMENT MARKET REPORT COVERAGE:

This research report on the global sales performance management market has been segmented and sub-segmented based on the global component, deployment model, industry, and region.

Global Sales Performance Management Market - By Component:

• Solutions

  • Incentive Compensation Management

  • Territory Management

  • Sales Planning & Monitoring

  • Sales Performance Analytics & Reporting

  • Other Solutions

• Services

  • Integration & Implementation

  • Consulting

  • Training & Education

  • Support & Maintenance

The solution segment is anticipated to clutch the higher shares in the market during the forecast period. Sales forecasting, performance analytics, and sales planning solutions are the areas thriving in the growth of the sales performance management market. To retain employees and keep them motivated, companies must have an incentive compensation management. After COVID-19, the way of doing sales has changed, and so are the parameters. So, modern sales performance analytics is required to measure sales operations. As a result, it is expected that these changing dynamics will drive the future demand for the solution. The majority of products in the sales technology sector are made for sales managers rather than the salespeople who actually utilize them. Also, customers buying behavior is changing due to the availability of information on the Internet. So, training sales representatives and adopting a modern training and education system is required, with timely access to system support and maintenance. All these factors are driving the growth of the services segment of the sales performance management market.

Global Sales Performance Management Market - By Deployment Model:

• On-Premise

• Cloud

The cloud segment is anticipated to have the largest sales performance management market share in the forecast period. Currently, however, the On-Premise category is the most profitable as companies want customized solutions for their requirements, which has led to market growth so far. In the years to come, most small and medium enterprises will shift towards cloud-based sales performance management software due to its widespread application, which has improved customer experience, increased corporate operations, and created better, more specialized client solutions.

Global Sales Performance Management Market - By Industry:

• IT and Telecom

• Manufacturing

• Healthcare

• BFSI

• Others

The BFSI segment holds a dominant share in the sales performance management market. For instance, in developed countries, the growth leaders managed to keep branch sales down to single digits while driving a ten percent gain in total sales through 40 percent growth in the digital channel. All these changes in the BFSI are increasing the demand for a modern sales performance management solution. As per a study, health and personal care sales in the United States of America in 2022 were around 400 billion dollars. The continuous rise in the sales of medicines, medical devices, and other pharma products is compelling companies to adopt performance systems. Therefore, a boost in the market share is expected during the forecast period.

Global Sales Performance Management Market - By Region:

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UA

  • Lebanon

  • Jordan

  • Cyprus

The North American sales performance management market is projected to gain traction in the shares during the forecast period. The market is expected to expand further due to the adoption of sales performance products and solutions and the introduction of new technology among new and existing companies in the market. The North American sales performance management market for SPM solutions is already mature because of the region's robust economy, early acceptance of contemporary technology, widespread use of digital technology in the workplace to enhance corporate operations, and high level of technological knowledge.

Europe is the largest sales performance management market after North America and is anticipated to grow at an impressive rate in the forecast region. The increase in demand for sales performance management solutions in the European region is driven by multiple factors like technological advancement for climate control and the European Union’s push for more electric vehicle sales, transforming into a digital economy. According to research, 4 out of 5 countries with the highest electric vehicle sales in 2022 in the world are Europe, and this sales trend is expected to continue in the future as well; as a result, a modern and advanced solution will be required by the companies in the region.

The Asia Pacific area is anticipated to grow further throughout the forecast period due to rapid migration and adoption by companies of cloud-based solutions, data analytics, performance management systems, etc., to achieve efficiency in work and automation in business operations. Still, a significant portion of small and medium enterprises are unable to access and utilize a modern sales performance management system because of budget issues, a lack of tech-savvy professionals, uneven access to the internet, etc. All these points affect the market share of the sales performance management market in the region.

Key Players in the Market:                    

Key Players in the sales performance management market include

1. Salesforce

2. Performed

3. Beqom SA

4. Anaplan Inc.

5. Iconixx Software Corporation,

6. SAP

7. Oracle 

8. NICE 

9. Anaplan 

10. Xactly, and others.

Recent developments:

• In April 2023, Salesforce announced a partnership with BitterUp to enhance sales performance and coaching to achieve business results. It adopted the human transformation platform by adding BitterUp Sales Performance to the Salesforce AppExchange.

• In February 2023, Performio launched a new product called Analytics Studio, which uses artificial intelligence for compensation management and produces insights regarding payable and attainment trends by team, territory, or product.