Delivered February 18, 2020. Contributor: Carol L.
To identify sales performance management market trends, factors influencing the market growth, new product directions, investments, investors, use of funds, and mergers and acquisitions.
Drivers of Growth
According to Research and Markets, "the newly found investments from the National Outer Continental Shelf Oil and Gas Leasing Program (National OCS Program) for 2019-2024 in the United States" are providing new opportunities. This "program is expected to allow offshore exploratory drilling in about 90% of the OCS acreage, which brings a positive outlook to all the secondary markets, like BFSI, logistics, and manufacturing in the region, increasing opportunity for the sales force to compete for providing required machinery and, in turn, increasing the demand for SPM [Sales Performance Management]."
According to Persistence Market Reports, one of the drivers for growth is "the need to streamline the business process in terms of selling and purchasing."
Other drivers mentioned are the "growing need for tracking of sales metrics, rising focus on sales performance management strategy, [an] increasing demand from BFSI healthcare, banking and financial service institutions, retail and telecom & IT, [the] improved sales performance and operational efficiencies with better management by using sales performance management solution."
According to Xactly, "almost 65% of companies still use home-grown SPM solutions." This, however, is changing with increased awareness and 6% of B2B sales leaders have implemented SPM solutions in 2018 and the beginning of 2019 and 29% were planning to implement one in 2019 and 2020.
Restraints to Growth
Restraints are, however, coming from small and medium enterprises that are reluctant to "implement expensive tools for business processes." Another restraint is the lack of awareness of these solutions and their benefits. A third restraint mentioned is data security risks.
In 2019, Great Hill Partners and Spectrum Equity have acquired assets of IBM's sales performance management business and were planning to operate it as an independent company, Varicent.
Summary of Findings
During the hour of research, we focused on finding information on factors driving and restraining the growth of the sales performance management market as well as investment information.
Most articles found on growth drivers, repeated the factors mentioned above.
Only the project owner can select the next research path.