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Can AI help motivate sales teams with creative incentives? Form AI, a Toronto-based provider of sales performance management (SPM) solutions, says yes. Offering an AI-powered SPM platform, the company wants enterprises to rethink how sales compensation is managed and optimized. Forma announced today that it has raised $45 million in Series B funding to expand marketing and development of the platform.
Agile, responsive sales organizations have improved their bottom line in recent years with the addition of next-gen tools such as Salesforce, Hubspot, Sage, and others. But sales fee management – an annual cost center of $1 trillion – remains a decades-old bottleneck. More than 40 software and service companies have tried to solve this complex problem, but the many processes required to design, manage and optimize compensation plans have been broken. Congested teams are still working with spreadsheets, manual tracking and calculations, and building formulas while many of these functions need to be automated.
Forma uses automated workflows to unify the rewards process across an organization to bring finance, HR, sales, sales, and IT together into a single collaboration tool to align everyone in these departments. This allows for better communication to make faster decisions and achieve goals faster than usual.
Old sales compensation methods are stifling growth
“The way sales compensation has been done in the past is completely unscientific,” Nabeil Alazzam, founder and CEO of Forma, told VentureBeat. “As a sales lead, you may know that the data tells you that you’re not selling enough product X, and that your sales lead strategically delivering more projects will be fundamental to the organization’s strategy,” he said. † “So you step back and bring in your sales force and your sales team and say, ‘I’d like to put together a SPIF (sales performance incentive fund) to boost product X.’ So you’ve used a structure from the past, you’re familiar with this kind of structure, and then you give that recommendation to your sales ops team and sales conference.”
Alazzam insisted that these sales compensation management processes be broken. “Companies are stuck doing the same things they’ve always done, which is stifling growth and profitability,” he said. Forma uses data-driven tools to bring all components of compensation management into a single AI-powered platform, eliminating existing process constraints and bottlenecks.”
Getting the right sales compensation can be one of the most important sources of income for a company, Phil Boyer, Crosslink Capital partner and an early investor, said in a media advisory.
“What previous attempts to solve this problem have failed is that they have placed the administrative burden of managing sales on the customer,” Boyer said. “Forma eliminates broken and disconnected internal processes and allows its users to focus on optimizing sales comp using live data as a force multiplier.”
Task work automated using basic functions
The company’s platform automates tasks well beyond traditional compensation management (ICM) tools by breaking down sales into the basic building blocks of functions, rules and workflows. These building blocks are then reused at customers to automate redundant tasks in a consistent manner.
Forma handles billions in annual managed commissions for companies such as OpenTable, Stryker and Autodesk, Alazzam said. The company has turned the current cloud spreadsheet paradigm on its head by unifying previously locked-in incentive processes into a single, powerful, scalable and flexible environment.
Forma facilitates higher-impact, faster-execution incentives to encourage optimal sales force behavior by removing the constraints of rigid, disjointed comp processes, Alazzam said. As a result, Forma lays a foundation where high-value offsets spend time promoting better sales behavior through incentive design — and not worry about building formulas, he said.
The funding round was led by: ACME Capital, along with Crosslink Capital, Golden Ventures, Uncork Capital, Xfund and Gaingels. With 400% revenue growth in 2021 and rapid corporate adoption of its revolutionary SPM platform, Forma plans to use the capital to expand its product development and go-to-market capabilities to meet growing demand in the industry. SPM market.
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