Automating Relief from an Error-Prone Process
Today, Norwest is thrilled to announce our Series A investment in Spiff, a leading sales compensation automation platform. Spiff simplifies sales commission calculations and enables companies to easily build and maintain compensation plans. Founder and CEO Jeron Paul felt the burden of manually calculating commissions firsthand and set out to build a product to solve this pain point. We’re excited to have the opportunity to partner with Jeron and his team as the company continues to scale.
Massive, Underserved Problem
Every company undergoes an annual sales planning process to revise and align incentive compensation plans with long-term strategy. A company can have over 15 plans for different quota-carrying reps depending on function and level, and plans become complex very quickly. For example, the below shows an actual commission formula, which is just one of many in this comp plan:
Source: Spiff blog, “10 Reasons Your Commission Spreadsheet Will Fail.”
Sales teams depend on their finance or sales operations team to accurately calculate commissions for reps at the end of each cycle. Traditionally this has been a tedious, manual, and error-prone process done in Excel spreadsheets that slows down business operations. In addition to finance teams spending 3+ days a month on this process, sales reps also carve out time to track their expected commissions since they are not calculated in real-time, which detracts from the time they have for winning new business.
Enter Spiff. Spiff simplifies and automates the commissions calculations process so your sales and finance teams can focus on what they do best. Spiff integrates with companies’ CRM, ERP, and other data systems such as Snowflake and Looker to serve as a single source of truth and can be implemented in as little as 2 weeks. Their real-time solution provides transparency into comp calculations and helps motivate sales team.
Strong Customer Love
In our customer conversations, we repeatedly heard that Spiff delights customers. Due to its intuitive UI, real-time transparency, and flexibility in updating plans, Spiff is trusted by many fast-growing companies such as Brex, Sysdig, Qualys, Weave, Cockroach Labs, Workfront, Lucid, and Podium, to name a few. Many customers are also able to reduce their comp calculation error rate from 5% to <1% and appreciate Spiff’s ability to support a range of quota-carrying users, from Account Executives to Sales Development Reps to Customer Success reps.
We feel strongly that Spiff offers a unique, simple, and powerful solution and are thrilled to welcome Jeron and the Spiff team to the Norwest family.