Sales Performance Management (SPM) Market Size - By Component (Solution, Services), Deployment Model (Cloud, On-Premise), Industry Vertical (FSI, IT and Telecom, Manufacturing, Energy and Utilities, Healthcare, Retail), Enterprise Size & Forecast, 2023 - 2032

Sales Performance Management (SPM) Market Size - By Component (Solution, Services), Deployment Model (Cloud, On-Premise), Industry Vertical (FSI, IT and Telecom, Manufacturing, Energy and Utilities, Healthcare, Retail), Enterprise Size & Forecast, 2023 - 2032

Sales Performance Management Market Size

Sales Performance Management Market size was valued at USD 2.2 billion in 2022 and is estimated to register a CAGR of over 16% between 2023 and 2032. The market growth can be attributed to the increased emphasis on sales productivity and performance across enterprises. Businesses are increasingly focused on improving sales team productivity and performance. Sales performance management solutions provide tools to track, analyze, and enhance the performance of sales representatives, helping organizations achieve their revenue targets and improve overall efficiency.

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Driven by these benefits, companies operating in this space are actively innovating new products and solutions to keep up with the increasing market demand, thus stimulating the growth of the sales performance management market. For instance, in June 2022, LeadSquared, an Indian CRM software and marketing automation platform, introduced a new suite for sales performance management called "Ace." The Ace Suite employs a blend of psychological and analytical strategies to gamify sales procedures and improve sales performance.

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The initial product launched within the Ace suite is called "Goals." It allows sales managers to establish well-defined objectives using a no-code configuration. These objectives can be tailored to a wide range of key performance metrics, including Lead Generation, Completed Calls, Closed Deals, and Generated Revenue, catering to different positions within the organizational structure.

The complexity of implementing SPM solutions and integrating them with existing CRM (Customer Relationship Management) or Cloud ERP (Enterprise Resource Planning) systems may pose challenges to industry growth. This often-required significant time, resources, and technical expertise, making it a barrier for some organizations, particularly smaller ones, impacting the overall market dynamics.

COVID-19 Impact

The COVID-19 pandemic substantially impacted the Sales Performance Management (SPM) market. With remote work becoming the norm, SPM solutions became vital for tracking and optimizing sales performance in dispersed teams. The demand for digital tools for performance monitoring and incentive management surged, reflecting the need for adaptability in a rapidly changing sales landscape. COVID-19 accelerated the adoption of SPM technologies as organizations sought more agile and data-driven approaches to sales management.

Sales Performance Management Market Trends

Rapid integration of AI and ML into SPM solutions will notably accelerate the sales performance management business. SPM solutions are increasingly integrating AI and machine learning capabilities to provide more advanced analytics and predictive insights. These technologies help organizations identify sales trends, optimize compensation plans, and make data-driven decisions to improve sales performance. As a result, tech players globally are putting their foot forward to leverage AI and develop solutions that enhance business performance. 

For instance, in May 2023, SAP and Microsoft, major players in the tech industry, declared their intent to strengthen their partnership in collaborative generative AI initiatives related to recruitment. SAP has revealed plans to integrate its SuccessFactors solution with Microsoft's Copilot, Copilot within Viva Learning, and Azure OpenAI. This integration will leverage language models for natural language analysis and generation. The goal is to enhance the processes through which businesses attract, develop skills, and retain their talent. 

Sales performance management systems often integrate with compensation and incentive management, which is crucial for motivating and retaining top sales talent. As a result, companies are adopting these solutions to ensure that compensation plans are directly tied to performance, encouraging sales teams to meet and exceed their targets, further strengthening the sales performance management market outlook. Quoting an instance, in December 2021, Varicent, a prominent player in the Sales Performance Management (SPM) software sector, unveiled the most recent updates to its highly regarded Incentive Compensation Management (ICM) solution.

These enhancements result from a collaborative process that involves customer input and takes into account prevailing industry developments. This award-winning SPM solution has continually evolved since its inception to offer improved functionality in the realms of sales compensation and planning, helping organizations streamline these critical processes.

Sales Performance Management Market Analysis

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Based on enterprise, the large enterprises segment held over 70% of the market share in 2022, driven by the need for data-driven decision-making and performance optimization. SPM systems offer advanced analytics and insights that help large organizations refine their sales strategies. The complexity of managing sales teams and incentives across expansive enterprises necessitates the automation and efficiency that SPM solutions provide. Additionally, the increasing competition in the global market pushes enterprises to invest in SPM to stay competitive and motivate their sales teams to achieve better results.

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Based on industry vertical, the BFSI segment accounted for 26% of the sales performance management market share in 2022, due to regulatory changes and increased scrutiny requiring a transparent and accountable sales process. The BFSI sector relies heavily on sales teams to acquire and retain customers, making efficient performance management crucial. SPM tools enable organizations to optimize sales strategies, improve compliance, and align sales incentives with business objectives, all of which are paramount in this highly competitive and dynamic industry.

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North America sales performance management market size recorded more than 37% of revenue share in 2022. The region's highly competitive business landscape demands efficient sales processes, which SPM solutions optimize. Additionally, North American businesses strongly emphasize data-driven decision-making, and SPM tools offer advanced analytics for informed strategies. Moreover, regulatory compliance is stringent in the region, making SPM's role in ensuring transparent sales practices and accurate incentive management critical. These factors, coupled with the region's technological advancement and economic strength, contribute to the high growth of the SPM industry in North America.

Sales Performance Management Market Share

Major companies operating in the sales performance management industry are

• Anaplan, Inc. 
• Beqom SA 
• Gryphon Networks 
• Iconixx Software Corporation 
• Incentive Solutions Inc. 
• Nice Ltd 
• Oracle Corporation 
• Performio Solutions Inc. 
• Salesforce.com Inc. 
• SAP SE 
• Varicent Software Inc. 
• Xactly Corporation 

Companies in the SPM market are employing various strategies to fortify their positions. These strategies include investing in innovative technology, expanding service offerings, enhancing customer support, and forming strategic partnerships to tap into new markets and achieve sustained growth.

Sales Performance Management Industry News

• In April 2023, Siemens Digital Industries Software and IBM unveiled plans to enhance their software collaboration by creating a comprehensive suite of integrated tools aimed at tackling system engineering across multiple domains. This expanded partnership will encompass lifecycle management and asset management, with the overarching goal of establishing a unified digital thread that runs through the entire manufacturing infrastructure.

The sales performance management (SPM) market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Component

• Solution
  • Incentive compensation management
  • Territory management
  • Sales monitoring and Planning
  • Sales performance analytics & reporting
  • Others
• Services
  • Professional services
  • Managed services

Market, By Enterprise Size

• Large enterprises
• SMEs

Market, By Deployment Model

• On-premise
• Cloud

Market, By Industry Vertical

• BFSI
• IT and Telecom
• Manufacturing
• Energy and Utilities
• Healthcare
• Retail
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the Sales Performance Management (SPM) Market?

The market size of sales performance management reached USD 2.2 billion in 2022 and is set to grow at over 16% CAGR from 2023 to 2032, attributed to the increased emphasis on sales productivity and performance across enterprises.

How will BFSI sector influence the growth of sales performance management (SPM) industry?

The BFSI segment held a market share of 26% in 2022, due to regulatory changes and increased scrutiny requiring a transparent and accountable sales process.

Why is North America emerging as a lucrative growth avenue for sales performance management market players?

North America held around 37% of the market share in 2022, as the region's highly competitive business landscape demands efficient sales processes, along with emphasis on data-driven decision-making and informed strategies.

Who are the key contenders in sales performance management (SPM) landscape?

Anaplan, Inc., Beqom SA, Gryphon Networks, Iconixx Software Corporation, Incentive Solutions Inc., Nice Ltd., Oracle Corporation, Performio Solutions Inc., Salesforce.com Inc., SAP SE, and Varicent Software Inc.