Classification data is used to organize transactions in a meaningful ways. This data is organized into a tree structure and used to group, classify, organize, and distribute sales transactions data. This ensures that sales reps are accurately compensated, and reporting is also accurate.
Categories and classifiers are used to sort and classify transactions. Classified transactions are allocated as credits to generate compensation, through the use of Territories.
During the calculation, the Pipeline will compare transaction fields and match them with classification rules. What’s the advantage of classification data? Let’s look at a few examples.
Scenario 1: Stacey is a Sales Rep that specializes in bike products in the western region of the US. Her territory includes the states of California, Arizona, and Nevada. The Postal Codes hierarchy will hold a list of US states and other geographical regions, and a classification rule that tells the system how to match a transaction with the correct state. We can then create a territory that contains the three states in the region, and assign Stacey to that territory.
Scenario 2: Each customer has a negotiated discount that differs for each account. Customer data is stored in the Customers hierarchy, and the discount is stored in a generic number field. The compensation plan finds the customer that matches the one on the transaction, extracts the negotiated discount, and uses it to calculate the commission.