Xactly (News - Alert) Corporation, which sells on-demand sales performance management, has announced that its Xactly Rewards application, a noncash rewards offering integrated with its flagship Xactly Incent application, will be built natively on Salesforce.com's (News - Alert) Force.com platform and delivered in Q1 2008.

Clarence So, CMO, Salesforce.com, said the product is designed to help customers increase sales performance through "the powerful synergy between CRM information and sales compensation data."

Xactly provides a number of modular applications for Xactly Incent for a company's sales performance management program. Market-leading companies are increasingly implementing noncash reward initiatives to augment their cash-based programs.

This summer Xactly announced that RightNow Technologies (News - Alert) has implemented Xactly Incent as its sales compensation management product worldwide.

The on-demand product let RightNow model, create, deploy and manage "more sophisticated and strategic compensation plans for its sales team and drive more effective sales behaviors," according to Xactly officials.

"As a fast-growing company, we had a compelling need for a scalable, automated compensation management product that would let us implement more complex and ultimately more profitable compensation programs," said Kim Scurry, RightNow director of sales operations.

Early this year Xactly had announced that they were "working on a strategic alliance" with RightNow Technologies.

Motivating sales and service staff is "a critical component to any customer experience strategy," Xactly officials said, adding that "focused and well compensated sales representatives are more likely to provide the high touch experience customers expect."

In November Xactly said BigMachines, which sells on-demand configuration and quoting software, had adopted Xactly Incent Managed Service to outsource its sales compensation management process, end to end.

BigMachines officials say they selected Xactly Incent to replace a labor-intensive spreadsheet-driven compensation process that "diverted employee time and energy from higher-value tasks, including selling."

Godard Abel, BigMachines co-founder, president and CEO, said by outsourcing our sales compensation management with Xactly "we have one less thing to worry about. This will also allow us to tighten our internal controls without adding headcount to our finance and accounting team."

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David Sims is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.

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