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October 29, 2015
by Global Marketing Team 4 Comments

Incentive Compensation in Retail Industry

The retail landscape is increasingly dominated by stores. But the headlong rise of e-commerce has put extreme pressure on retailers to become more efficient, and to justify their bricks and mortar existence to customers. Retailers are recognizing that traditional retail needs to be retooled and their key differentiator could be that employee standing in the store.

Employee motivation is probably the most important single manageable factor for success and profitability of all the facets of store retailing. There are almost as many effective ways of motivating employees as there are ways of enticing customers into a store but money is generally the greatest motivator of all.

Retailers offer incentive compensation plans to promote employee motivation. These plans are tailored to the unique situation of each store.

Some of the factors used by retailers while building a compensation plan for a store are

Y-O-Y growth ($$$)
Y-O-Y growth percentage (%)
Achievement against target ($$$ – A grid of growth $ against various bonus %)
Achievement against target (% – A grid of growth % against various bonus %)
Inflation
Seasonality
Store factors (Age of the Store, Store Hierarchy, Geography)
Non comparability against last year performance (New Store, Store Expansion, Store Relocation, Cannibalization against new store)
Employee role, grade/band, salary etc.

While measuring achievement, Targets are usually the store turnover or the profitability or a combination of both. It is better if the plans are simple. However, simplicity itself cannot be given excessive consideration since it is necessary to cover every major measurable factor.

The master data required to build and roll up compensation plans is either defined at the Incentive compensation platform or flows to the platform from upstream systems along with achievement (turnover, profitability) details.

Master data is typically validated by financial controllers and relevant entities before getting fed for compensation consideration.

Incentive compensation platforms help in performing calculations using set of complex rules and the final rates and amounts are dispatched to payroll department for validation before they are broadcasted to the stores.

Store employees access these details through employee portals or other methods setup for them.

Compensation platform facilitates regular reviews of performance against compensation plans to stimulate store level efforts. Data is archived to facilitate audit.

The installation of an effective incentive plan is the foundation of a successful motivational compensation program. To optimize results retailers should regularly nourish and promote the program and a regular review would make sure it is still working to expectations.

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CRMIT Solutions deliver a Fixed Scope Implementation offering for Oracle Sales Cloud to fast track sales productivity. Fixed Scope Offering leverages Oracle best practices and agile approach for fast track implementation of Oracle Sales Cloud – Go Live in less than 4 weeks. It drives sales productivity through higher win rates, forecast accuracy, and lead conversion.

Inputs
C.A.Mohammed
Consulting – CX/CRM Industry Solutions
CRMIT Solutions

September 30, 2014
by Deepti Sharma Leave a comment

Whats there for Today’s Citizen from The Internet of Things and Big Data?

Internet of Things, such as sensors and network technology, is changing company processes and consumer interactions – and even entire business models.

More objects are becoming embedded with sensors and gaining the ability to communicate. The resulting information networks promise to create new business models, improve business processes, and reduce costs and risks.

Internet of Things and Big Data are already considered to be one of the disruptive technologies/ concepts (See: Disruptive Technologies) which has business potential of more than trillion dollars directly or indirectly. (Ref: Wikipedia for Definition – Internet of Things and Big Data).

According to McKinsey Global Institute, the Internet of Things has the potential to create an economic impact of $2.7 trillion to $6.2 trillion annually by 2025 (McKinsey Global Institute, Disruptive technologies: Advances that will transform life, business, and the global economy, May 2013).

Internet of Things is already there in the devices, sensors, cloud infrastructure, and data and business intelligence tools you are already using.

When government starts embracing the technologies and concepts of Internet of Things and Big Data, the value addition and the experience that it can bring to common man’s life, will be of great significance.

Here, I thought of sharing my ideas on one of the major transformation that governments can do to benefit and improve citizen’s experience who commutes miles for their day to day activities.

Offer them a smart city with smartly regulated traffic controls. Utilize Internet of Things concept to install the sensors/ actuators in almost every vehicle (two wheeler, four wheeler, trucks, lorries etc) in the city and collect the varied, huge volume, rapidly changing big data for analysis.

With these raw data in place, government shall be able to identify and get the statistics on the no. of vehicles during peak hour, in every specified location, the free alternate roads during the same time, no. of outstation vehicles commuters and can gather limitless data which shall help in streamlining the traffic to the best minimum. Nevertheless, these data shall as well be utilized for the future infrastructure needs of the city.

What I have shared now is just one of the many advantages that IoT and big data can bring together to add and improve citizen’s experience which inturn potentially decrease the stress level of citizens, improving their life style and providing more time for their personal needs.

About CRMIT Solutions:

CRMIT Solutions is a leader in transforming businesses with cloud based Customer Experience (CX) solutions on sales, service, marketing & social cloud.

We are committed to provide customers with the best service in the industry. Everything we do – every order, every delivery, every service, every offering – centers on the satisfaction of our customers, and making them more efficient at what they do.

Inputs
Suresh Ponniah
Principle Business Consultant –Industry CRM & CX Solutions.
CRMIT Solutions

September 30, 2014
by Global Marketing Team Leave a comment

The Changing Landscape of Data Management for Marketers

The digital age is no challenge to the traditional marketer.

The medium is the message, for any brand that seeks, competes, to be bought. The digital age poses certain things to the marketer.

It emphasizes accuracy and precision. It offers several narrow-band social media with promises to make them all as good if not better than the physical social media such as newspapers, schools, drum-beats, magazines, shopfronts, tv, exhibitions, billboards, dinners, banners and radio. It rings in a profession – digital marketing. It has a promising tool-set for the professional – marketing cloud.

The digital marketer knows we are not there yet, but marketers are nothing if not optimistic. We know it shall come to be, soon. What remains for the marketer then is to probe the how and when of the marketing cloud. And when we get going on that it is apparent that the digital age calls for self-help.

The Googles, Amazons, Microsofts, Apples, BlueKais, Twitters, Facebooks, Yahoos, the blogs, Wikis, emails and fora are the (social) media of the digital age that try to bring people and brands to common knowledge. They are narrow-bad. They present several digital ‘channels’ of engagement (web, phones, mobile, mobile web, email), some offer an omniscience across those channels while some are available in specific workspaces.

However, being largely monopsonies (the individual is their only buyer) none is sufficiently common enough, yet, for a business to bank on any one or sets of them. There is variety, automation and global reach in these digital media and it is for the marketer to string them together – a Herculean task given the absence of commonality over them. The management systems from the Oracles, Adobes and IBMs are a necessity if one’s market (the potential buyer of one’s product) extends into the digital realm. Marketing is more than media spots and management.

Marketing is about making common knowledge, it is a social phenomenon. The marketing clouds do not as yet offer the digital equivalents of the Agencies and the humint. They might never for all we know. The agencies have traditionally generated the data to germinate the social phenomenon.

The smart agencies for the digital realm are waiting to be born. A WPP and an nFusion could be equals in the digital realm. This equivalence might seem yet another homage to the disruptive internet but for all one knows there may be no scope for a digital WPP.

Directed and Filmed by Michael Shainblum

The internet, of pages and of things, is enabling many sources of data every bit as rich as the other. In this landscape the digital marketer has no choice – one must pay time and trust in return for information. The clouds are oceanic and limitless. We are just getting started.

About CRMIT Solutions:

CRMIT Solutions is a leader in transforming businesses with cloud based Customer Experience (CX) solutions on sales, service, marketing & social cloud.

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Incentive Compensation in Retail Industry

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