Welcome!

News Feed Item

Xactly’s Data Reveals Traditional Sales Performance Doesn’t Matter, 79 Percent of SaaS Sales Reps Miss Quota

Xactly, a leading provider of cloud based incentive solutions, announced the SaaS Industry Incentive Compensation Benchmark. The first study of its kind, based on empirical data, the 2013 benchmark analyzed the sales and incentive compensation patterns of SaaS companies to pinpoint the impact of compensation on sales performance. Surprisingly, the study revealed that a large percentage of quota-carrying SaaS sales representatives are not hitting their goals: 79 percent of sales representatives miss quota and 14 percent never achieve even 10 percent of quota. Across the entire SaaS data set the average quota attainment is 58 percent. The data remained consistent regardless of tenure.

These patterns were consistent across all companies analyzed – regardless of size or market. The report indicated that SaaS companies are prioritizing growth rather than traditional sales performance. The report also found that SaaS companies with under $100 million in sales are paying more in variable compensation relative to companies with more than $1 billion in sales, on average 46 percent more. The report shows that smaller companies are paying $1,000 in variable compensation for every $22,000 in sales, compared to larger companies that pay $1,000 in variable compensation for every $36,000 in sales.

A sub-set of the data demonstrated an extreme dynamic where the traditional bell curves were inverted creating a bimodal distribution of performance, with high populations either overachieving or failing miserably. “The data indicates that these SaaS companies may be responding to demands for growth with a feast or famine mentality, creating the risk of being too heavily dependent on top sales performers,” said founder, president and CEO Christopher W. Cabrera of Xactly Corporation. “This approach indicates that SaaS businesses may be tolerating underperformance and need to re-think their sales strategy to meet long-term company objectives of growth, retention and profitability.”

Tenure Doesn’t Matter

  • On average 15 percent of sales representatives who were in their roles for at least one year made quota, and 5 percent didn’t achieve even 10 percent of quota.
  • Similarly, on average 16 percent of sales representatives in their role less than one year made quota, and 19 percent didn’t achieve even 10 percent of quota.

Download the full report at http://bit.ly/1oJZfZK.

The SaaS Industry Incentive Compensation Benchmark is the first in an ongoing series of Xactly reports. The data for each benchmark is accumulated and analyzed from annual, anonymized sales big data within Xactly’s enterprise cloud compensation platform, which calculates more than a billion transactions each month and more than $10 billion in incentive compensation payouts over the last two years. With terabytes of information flowing through Xactly’s cloud compensation platform, data can be sliced by industry, role and company size, delivering new intelligence and best practices to customers across departments and industries. The next two reports in the Xactly series will offer insights on the software and business services industries.

Xactly also offers custom reports to customers looking to benchmark their compensation performance against like companies.

Additional Resources

About Xactly Corporation

With Xactly, companies of all sizes and industries can unleash the motivational power of their incentive compensation programs to inspire better employee performance and business results. Xactly’s secure, cloud-based incentive compensation and performance management solutions enable emerging businesses to Fortune 100s to easily design, manage and optimize incentive programs that save time, cut costs, reduce risk and align employee behaviors with corporate goals.

As evidence of Xactly’s continuous innovation and exceptional customer-centric culture, the Wall Street Journal twice named Xactly to its “Next Big Thing” list; Great Place to Work featured Xactly as one of the top 25 small workplaces in the nation in FORTUNE Magazine; and the Market Leader in Incentive Management by CRM magazine for the past five consecutive years. Salesforce.com customers also voted Xactly the best sales compensation management solution in the Salesforce AppExchange Customer Choice Awards. To learn how you can inspire better performance with Xactly, visit http://www.xactlycorp.com or call 1-866-GO-XACTLY (469-2285).

© 2005-2014

Xactly Corporation. All rights reserved. Xactly, Xactly Incent, Xactly Express and “Inspire performance.” are trademarks or registered trademarks of Xactly Corporation.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and G...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Everyone wants the rainbow - reduced IT costs, scalability, continuity, flexibility, manageability, and innovation. But in order to get to that collaboration rainbow, you need the cloud! In this presentation, we'll cover three areas: First - the rainbow of benefits from cloud collaboration. There are many different reasons why more and more companies and institutions are moving to the cloud. Benefits include: cost savings (reducing on-prem infrastructure, reducing data center foot print, redu...
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busi...