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Sales performance management (SPM) is the practice of monitoring and guiding personnel
to improve their ability to sell products or services. Software programs are available
to enhance the sales performance management process. These applications typically
streamline various activities in the corporate performance management process and
encourage behavior that drives sales.
A key objective of the sales performance management process is to educate and
motivate salespeople to set goals and satisfy customers. SPM software typically includes
components for goal setting and planning, feedback, skill development and performance
review. SPM software can also be used to track information about such things as sales
quotas, territories, incentive compensation, job evaluation and forecasting.
Sales Performance Management (SPM) is the process of overseeing and training
employees to advance their sales skills, processes, and results. SPM involves observing
sales practices either manually or with software, comparing to metrics, drawing
conclusions, and then implementing changes for advancement and motivating sales reps to
perform at the best of their abilities. To excel at SPM, one must possess visibility
into personnel activity and have a clear understanding of what their people are doing
right. Likewise, they must also be able to identify which employee actions can be
improved, and again, what motivates reps to perform at the peak of their abilities.
Challenges of Sales Performance Management:
Many companies don’t have the right resources to manage end-to-end sales
compensation processes and struggle with the following challenges:
Rules to Follow with Sales Performance Management:
The practice of Sales Performance Management is futile without a firm
understanding of the following:
Visibility:
The goal should be to enable sales reps, managers, and executives to see sales
progress in real-time. Specifically, reps should be able to readily access pertinent
data to see how close they are to making quota (and how much they’ll make when they get
there), while managers should be able to easily tell which team members need assistance.
The only way you can ensure your entire sales process is running as smoothly and
effectively as possible is to have visibility into employee performance. With increased
transparency, you’re able to make smarter, more strategic decisions about the way that
you incent and manage your entire sales process.
Accurate Forecasts:
To take control of this facet of your Sales Performance Management system, and
avoid unexpectedly high incentive compensation expenses, you must ensure that you are
always closing the books on time, without error. To achieve these aims, consider
creating “what-if” scenarios that predict how much your company will make if your sales
organization performs in certain circumstances. You can further ensure sales forecast
accuracy by conducting historical analyses, and by experimenting with new plans.
Motivation:
Sales gamification, and virtual leaderboards specifically, bring out a rep’s
competitive side by letting them know how they stack up in comparison to the rest of the
team—a surefire way to motivate your sales force to move up the ranks. It’s likely reps
will want to make it to the top of the list, which ultimately leads to greater revenue
for your organization. In addition to increased visibility, being able to accurately
estimate bonuses and track progress throughout the quarter will ensure reps never lose
sight of their goals while remaining motivated.
Payment Accuracy:
Automating the incentive compensation aspect of your Sales Performance
Management solution allows you to eliminate the element of human error and give
employees the freedom to spend more time analyzing incentive compensation, rather than
just processing it. Where complicated workflows and slow processes once existed, a new
and efficient process that eliminates days or even weeks of wasted time now takes its
place. The overall goal is to bring trust, compliance, and control to your incentive
comp.
Drive sales compensation effectiveness for your salespeople to motivate a team
of top performers. Sales Compensation Management helps large, complex sales
organizations transform and streamline their entire compensation process