Rising demand for flexible, data-driven solutions as over 53% of sales teams cite macroeconomic challenges as major barriers to hitting targets
SAN JOSE, CA / ACCESS Newswire / February 11, 2025 / Xactly, a global leader in intelligent revenue solutions, today released its annual Sales Compensation Report, which examines the evolving sales performance landscape, highlighting demands within the sales industry for data-driven compensation strategies, scalable tools for agility and efficiency, and tailored goal-aligned executive incentives.
In the face of ongoing macroeconomic uncertainty, 87% of sales teams report struggling to meet or exceed their quota targets, with more than half (53%) attributing external economic conditions as a key factor. This volatile landscape forces sales teams to navigate the dual pressures of retention while driving new growth, as shrinking budgets and risk-averse decision-making extend sales cycles and complicate deal closures. Rather than succumbing to these pressures, successful teams are reframing the challenge by focusing on what they can control-40% of salespeople report implementing new tech solutions, such as sales performance management (SPM) tools and AI-driven platforms, to streamline compensation and support evolving goals. By embracing innovation, upskilling their teams, and fostering cross-departmental alignment, these organizations are achieving measurable wins, from stronger retention rates to more predictable pipelines, and positioning themselves for long-term success despite the turbulence.
"With persistent economic volatility, rising pressures on sales teams, and shifting market dynamics, organizations are facing unprecedented challenges in meeting quotas and driving growth," said Arnab Mishra, CEO of Xactly. "This makes it critical to embrace innovative, data-driven solutions that not only attract top talent but also ensure sustainable long-term value. At Xactly, we are fully committed to helping sales leaders navigate these complexities and succeed in this new era of revenue operations."
Key takeaways from the 2025 Sales Compensation Report include:
62% of respondents report shifting to performance-based pay structures as a response to economic instability, enabling cost control while incentivizing top performers. This approach helps companies remain agile by linking rewards to performance rather than offering fixed increases.
64% of respondents use AI-driven tools to forecast sales trends, personalize compensation, and predict the most effective incentive structures based on historical data and market conditions. Quota attainment remains a significant challenge for many sales organizations, particularly in shifting economic conditions. Companies in fast-growing sectors like technology, healthcare, and renewables often face aggressive sales targets due to an influx of opportunities.
48% of respondents are placing more emphasis on long-term incentives (LTIs) like stock options, restricted stock units (RSUs), and performance shares to drive retention and align with long-term goals.
53% of respondents expressed a move away from individual performance-based compensation, as the shift toward team-based incentives gains traction.
To download a full version of the report, please visit our website. To learn more about how Xactly can optimize your sales performance and revenue intelligence, please visit https://www.xactlycorp.com/company/contact-us.
Research Methodology:
This survey, conducted in partnership with UserEvidence, included respondents from 160 companies. All respondents were segmented by company attributes including company size, average contract value, and industry.
Additional references and criteria can be provided upon request.
About Xactly:
Xactly provides the only AI-powered platform that combines revenue intelligence and sales performance management so organizations can unlock their full revenue potential. Backed by two decades of pay and performance data, Xactly's Intelligent Revenue Platform is designed for finance, revenue, compensation, and sales leaders who want to drive quality, sustainable revenue. To learn more about Xactly and the latest issues and trends in revenue intelligence, visit us at XactlyCorp.com, follow our blog, and connect with us on LinkedIn.
CONTACT:
Brianna Ary
PAN Communications
Xactly@pancomm.com
SOURCE: Xactly Corporation
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