We believe that the market for sales incentive compensation solutions is now

We believe that the market for sales incentive

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We believe that the market for sales incentive compensation solutions is now ripe for advancement, as companies of all sizes will be increasingly driven to accelerate their corporate performance and will require these tools to enable synchronization of selling strategies with execution. In the following section, we identify six ways in which sales incentive compensation solutions vendors can hope to expand their businesses and build market share over the midterm.
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'2007 IDC #209053 39 E S S E N T I AL G U I D AN C E As competition to win customers intensifies in the near years, vendors in the sales incentive compensation management solutions industry will be confronted with many strategic dilemmas. During this period, we expect that the market will expand and contract as mergers and acquisitions will play an active role in reshaping and growing this market ° particularly as CRM and SFA vendors seek to make their customer- facing offerings more comprehensive and attractive to buyers and/or grow their market share. We also expect that today’s market leaders, as well as newer entrants, will be challenged to provide overall cost leadership, differentiation, and focus in this early-stage market. IDC recommends that to achieve above-average market results, sales incentive compensation vendors adopt a growth strategy that includes the following actions: ! Identify and exploit new, high-opportunity vertical and task-specific segments. This is recommended to vendors that have specialized in a single industry or industry segment; to stay competitive, these vendors will need to look beyond their core markets into adjacent or other potentially promising markets or complementary segments. For example, the telecommunications and retail industries, unlike banking and insurance, have fewer rivals competing. ! Develop concentration or specialization strategies that are focused on fewer industries. Vendors that have taken a horizontal approach to the market should develop specialization in a few select verticals so they can reasonably respond and adapt to an organization’s unique needs. This will be required across all company-size segments as competition increases in a market that is becoming highly dynamic in its resurgence. ! Continue to educate buyers about the strategic value of sales incentive compensation solutions and their critical role in performance management measurement. It is critical for vendors to take the time to educate buyers about the strategic benefits of innovative solutions for sales incentive compensation management, especially those that solve a specific marketplace’s or even an organization’s distinct problems. ! Continually enhance product differentiation in an effort to create new standards and achieve a distinct position in the industry. This can be accomplished over time by making strategic investments in adapting offerings to buyers’ changing needs. In providing integration with OEM solutions, including
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