Sales Performance Management (SPM) is a gamut of interconnected, operationalized sales processes that enhance the sales organization's efficiency, effectiveness, and performance. Simply put, SPM improves the operational effectiveness and efficiency of sales processes via centralization, automation, and more.
Sales performance management is a process that tracks, measures, and rewards the performance of sales reps. It involves analyzing sales data and identifying improvement opportunities to increase sales revenue. Sales managers use this information to evaluate their employees' performance and determine who has the potential for promotion or termination.
Sales Performance Management (SPM) can be broken down into three primary categories:
Sales performance management (SPM) is a group of analytical and operational functions that unite and automate back-office sales processes to enhance operational effectiveness and efficiency. The SPM capabilities include quota management and planning, incentive compensation management, territory management, gamification, advanced analytics, and more.
The main objective of Sales Performance Management (SPM) is to provide the tools necessary for salespeople to achieve their revenue targets while helping businesses to:
Here are a few reasons why sales performance management is important for a business:
A good SPM strategy is created on three priorities: what, how, and where to sell. When these priorities are well-defined and thoughtfully set up, the outcome is "outstanding sales."
Sales performance management is often grouped into three main components:
The following tips and best practices can help your business improve sales performance:
Boost sales rep performance with Compass, the all in one sales incentive management platform that helps you easily incentivize engagement, drive action, and get results.
Measuring and tracking sales team performance is one of the most critical tasks for any business owner or manager. It's essential to know how well your team is doing so that you can set goals and make adjustments to improve their performance.
Here are some of the key factors you should consider when measuring sales team performance:
The key differences between Sales Performance Management (SPM) and Incentive Compensation Management (ICM) are highlighted below:
Sales Performance Management (SPM)
Incentive Compensation Management (ICM)
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
Sales performance management software is a business intelligence tool that helps businesses track and manage every activity of their sales team. The system automatically collects data about every aspect of sales, such as phone calls, emails, meetings, and webinars, and provides a dashboard with a bird's-eye view of information.
The main reason why companies invest in this type of software is to improve their sales performance by understanding how they can do better and what they are doing right now. The system also helps you analyze your team's performance against competitors and set goals for each salesperson.
Choosing the right sales performance management software can be a daunting task. There are many options to consider, and each has its advantages and disadvantages.
Here are some factors to keep in mind when choosing sales performance management software:
The best sales performance management software will also include features like: