Sales performance management is made up of several elements and many of them are both exciting and have the possibility of transforming the way the subject is perceived. The idea is that sales are evaluated and drives are made to increase the level in the following quarter, by using next generation activities and best practices that are metrics driven.
It has been considered that there are 5 vital elements to sales performance management: –
- Firstly, there must be a strategy – this will cover how to communicate, ensuring agreements are acted upon and putting a strong process in place.
- Next will be optimisation – it is here that all areas must be efficiently run and sales effectiveness must be improved.
- Organisation should be at the forefront of all aspects of running the company. Training should start right away; the company’s culture should be known and acted upon by all staff. Structure must be adhered to and not allowed to slip.
- Metrics will obviously come into play with performance improvements monitored at all times.
- Use of technology – the latest equipment needs to be brought in to make sure that there are higher sales levels achieved.
Why is SPM so important?
Research has shown that when SPM is promoted sales reps have a much better opportunity of hitting targets. Those who do not do this find that 3 out of 4 of their reps fall short. To add to this, a company that refuses to use SPM will find that they only achieve 1/3rd of annual growth than companies with the foresight to employ it.
What does it do?
Sales management is combined with a much more inward looking and focused approach to sales and this is the way to use SPM. It will be possible to see where the market for your product or services lie and as a result, repeat business will be achieved. It will be possible to predict orders that will come along in the near future.
Staff will be delighted by the fact that it can also make the sales process more streamlined as well as increasing productivity. It increases the benefits of sales management as it engrains more of a focus on improved performance and continually pushes for the increase in sales.
Ongoing training and assessing of sales reps will help them to see what works and what does not. Metrics used will go above and beyond the general analysis and will allow benchmarking against the best of the opposition. There will however have to be buy in from the top to the bottom of the company.
Why introduce the system?
Often this happens because of previous poor performance and the understanding that things should change. If other forms of analysis and attempts of improvement have failed it will be time to move onto the next system.
What is needed?
State of the art technology is needed to ensure sales performance management is a success. VOIP will be required and it will be an advantage if it is possible to dial out of the CRM leaving reps with more time to build up new contacts.
Many sales managers may feel that this is a step beyond their comfort zone when the system is first introduced. The reality is that the benefits that will be reaped from its use means that they will have to persevere and make it a success. To put the company into one of the top positons in the industry will not be possible without this standard of system and if they want to be building for the future, they must have faith in and support their sales team.