Coaching

Sales Performance Management – What Can it Do for You?

It has been proven that sales teams that use Sales Performance Management (SPM) actually perform better than teams that do not use a SPM. In this post, we will go over what a SPM is, what it can do for your sales team, and how you can get started. We will finish by going over software solutions that will make tracking sales performance much easier.

What is it?

If this past year has taught us anything, it is that the most agile companies will succeed when the times get tough. Sales performance management creates a plan for sales managers based on sales performance data. This plan will include how to drive revenue and keep the company running smoothly. This allows companies to get a clear picture of their operations and allows for more agility within the team. Sales performance management is all about sales data, whether it be on a team level or an individual level; it helps managers set expectations and goals for their teams. Every KPI or Key Performance Indicator should be aligned to the strategic goals of your company. By measuring the leading indicators, or those that will drive the desired outcome, each manager can ensure their team is focused on the strategic goals of the organization. 

Pros

The pros of sales performance management are endless, but here are a few just to show how important SPM is to a growing company. A SPM will create a stronger pipeline by educating sales reps of what is working and where they need to improve. . Sales members will have data of their past sales so they will be able to critique and improve their sales skills. Companies using a SPM will also have more accurate forecasts. Data-driven analytics will allow you to predict revenues and profits with much more accuracy. Another benefit of a SPM is it will allow you to motivate your team through performance appraisal. Successful reps can get the recognition they deserve and they will likely be more loyal to the company because the company values them and their success. 

How to Get Started 

Now that you know a few reasons why a SPM would be helpful for your company, how do you start? Here are a few tips to get you on the right track: 

1. Have a clear objective in mind – Ask yourself, what do I want to get out of a SPM? Make sure you know what you want to achieve so you can find the data that will answer your question.
2. Correlation is not causation- Data never lies, but sometimes the data can be interpreted the wrong way. Before you make a big decision based on SPM data, check to make sure there are no external factors that may be skewing your data.
3. Be a good manager- A SPM gives a lot of insight for sales reps, but a SPM can help sales managers tremendously. Use sales rep performance data to provide better management and coaching to your reps. Identify when THEY need you, not when you think you need to be involved. Performance reviews also become easier when all of the sales data is analyzed and ready to go. 
4. Make changes when necessary-. Be sure to actually listen to your data. For example, if the SPM data is telling you that customers are falling through the pipeline once reps start talking about long-term contracts, use that information. Start offering shorter contracts to try to close more deals. 

Using Software

Using SPM data is extremely important to any growing company and there is really only one downside, analyzing sales performance management data is tedious and requires a lot of concentration to get the most accurate results. Also, trying to use sales performance management data by hand can be difficult because some of the data may not have been passed along which will lead to inaccurate results. The best way to get the most accurate data in the least amount of time is to use a SPM software. Using software will also produce more detailed data that may fall through the cracks when the data is being compiled by hand. Check out all of the ways a SPM software like Canopy can help your sales team and your company. Request a demo today to see all the ways Canopy can help your sales team continue to drive revenue! 

Looking for more information? Check out some of our other pages!

Sales Performance Management Software

AI for Sales

Sales Activity Tracker 

Demand Forecasting Methods

Sales Team Productivity Software

Business Reporting Platforms

Marginal Revenue Productivity