This market's scorecard has narrowed its name twice in six years, from Sales Performance Management Solutions to Sales Performance Management Solutions For Incentive Compensation, while the product it scores kept widening. The newest edition, published in Q1 2025, grades twelve vendors on twenty six criteria, and the name's narrowing is the market's confession: compensation became the part of performance management that everyone actually buys.
The report under the current name: The Forrester Wave: Sales Performance Management Solutions For Incentive Compensation, Q1 2025
The Q1 2025 edition published March 11, 2025, scoring twelve vendors against twenty six criteria across Current Offering and Strategy. The incentive compensation focus is the report's own scoping decision: territories, quotas, and coaching have their own tools now, and the scorecard concentrates on the calculation that pays the sellers.
The criteria list is the compensation engine's anatomy: plan creation and maintenance, plan modeling and scenario planning, calculation processing, crediting, dispute resolution management, source data integrations, data transformation, reporting, time-to-value, and the newest columns, advanced AI capabilities.
The naming arc matters for a buyer searching the catalog. The 2019 edition ran under Sales Performance Management Solutions. The 2025 edition runs under the longer, narrower title. The same market, two names, and the longer one tells you where the scorecard's weight sits.
Two Leaders, two generations of compensation engines
Varicent took a Leader placement with the highest possible scores in sixteen criteria, including advanced AI capabilities, calculation processing, plan modeling and scenario planning, crediting, dispute resolution management, and data transformation, plus the highest Strategy ranking on vision, innovation, and roadmap.
Forrester's distinguishing sentence: Varicent is "the only solution evaluated with an in-depth set of AI capabilities." In a market whose entire product is calculation, the vendor with the deepest AI in the calculation engine holds the clearest differentiation, and the scorecard says so in one line.
CaptivateIQ took the second Leader placement, with the highest possible scores in twelve criteria including plan creation and maintenance, plan modeling, end-user modeling, source data integrations, data transformation, time-to-value, roadmap, and advanced AI capabilities, and its own framing as the "only enterprise-grade modern ICM vendor."
Two Leaders, two generations. Varicent is the incumbent engine with the AI depth and the regulated-industry certification stack. CaptivateIQ is the modern entrant with the time-to-value and the plan-modeling speed. The market's two eras sit on the same rung, and the scorecard records both fairly.
The strong performers and the customer's voice
Everstage announced a Strong Performer placement with the highest possible scores in reporting capabilities, time-to-value, and adoption, and Forrester's note that "customers rave about the overall user experience and live support they receive from Everstage."
Forma.ai announced a Strong Performer placement and the edition's only Customer Favorite designation, with Forrester's comment that its "disruptive approach is working."
The Customer Favorite is the edition's quietest finding. In a compensation market, the customer's voice is the seller's own voice, because the end users are the sales team whose paychecks the platform calculates. A vendor that wins trust on the compensation check has won the hardest trust in B2B software, and the designation says Forma.ai earned it.
The 2019 baseline under the shorter name
The prior edition, The Forrester Wave: Sales Performance Management Solutions, Q1 2019, authored by Mary Shea, scored eight providers on thirty five criteria: Anaplan, beqom, IBM, NICE, Optymyze, Oracle, SAP, and Xactly.
Xactly was named a Leader, cited for "deep subject matter expertise and a clear vision for the future of the category," fourteen years of SPM provider experience, an eighteen percent of revenue research and development investment, and a machine learning algorithm predicting sales representative attrition.
The 2019 field is a roster of the pre-narrowing market: enterprise stacks, IBM, Oracle, SAP, pure plays, Xactly, NICE, Optymyze, and the planning platforms, Anaplan. Six years later the scorecard narrowed to incentive compensation, and the field's shape changed with it, the AI-era specialists taking the rungs the enterprise stacks once held.
The honest limits of a narrowed scorecard
Two Leader and two Strong Performer placements are publicly confirmed; the remaining eight have not surfaced, and this article names what the record supports and nothing beyond it.
The narrowing itself is the structural caveat. A scorecard focused on incentive compensation grades the calculation engine, and a buyer whose SPM problem is territories, quotas, or coaching is shopping a market this Wave no longer fully covers. The name narrowed for a reason, and the buyer should check which problem is actually theirs before trusting the tier. The scorecard knows what it is scoring, and so should the buyer.
Three questions for the compensation buyer
Which era is your compensation plan from: the incumbent era or the modern era? Varicent's depth and CaptivateIQ's speed win different criteria. If your plans change monthly, time-to-value may outweigh calculation depth, and the tier column will not tell you.
Can the AI explain a commission, not just compute it? The advanced AI criteria are the new columns, and disputes are the market's daily reality. Ask the platform to explain one disputed payout in plain language, because the seller asking about their paycheck is your real end user.
Does the platform earn the seller's trust? The Customer Favorite designation exists for a reason. Demo the seller-facing experience, not the admin console, and ask for seller satisfaction evidence, because adoption of a compensation tool is decided by the people whose money it calculates, and their verdict lands in the Customer Favorite column before it lands in your renewal decision.
Analyst Source
Forrester Research
Category definition, vendor inclusion, and evaluation findings in this article draw on The Forrester Wave: Sales Performance Management Solutions For Incentive Compensation, Q1 2025, published March 11, 2025, scoring 12 vendors against 26 criteria. Varicent and CaptivateIQ are the confirmed Leaders, with Everstage and Forma.ai confirmed Strong Performers, Forma.ai holding the only Customer Favorite designation. The category's prior edition, The Forrester Wave: Sales Performance Management Solutions, Q1 2019, authored by Mary Shea, scored eight providers against 35 criteria, with Xactly a Leader. The 2025 edition narrows the market's focus to incentive compensation.
Source research
- The Forrester Wave: Sales Performance Management Solutions For Incentive Compensation, Q1 2025
- Varicent Named a Leader in The Forrester Wave: Sales Performance Management Solutions for Incentive Compensation, Q1 2025, Business Wire, March 11, 2025
- CaptivateIQ: The Forrester Wave SPM for Incentive Compensation, Q1 2025, CaptivateIQ
- Everstage Named A Strong Performer in Sales Performance Management Solutions for Incentive Compensation, Q1 2025, Business Wire, March 11, 2025
- Xactly Named a Leader in Sales Performance Management, Xactly
- The Forrester Wave: Sales Performance Management Solutions, Q1 2019 (RES143851), Forrester
Forrester does not endorse any vendor named here, and tier placement should not be read as a recommendation to buy.
This pairs closely with Sales Performance Management Solutions For Incentive Compensation, where none of the enterprise stacks that led this category's 2019 scorecard, IBM, Oracle, SAP, appear among the confirmed Leaders in the newest edition, a near total generational handover inside one market.