Sales Performance Management (SPM):

Sales Performance Management (SPM)

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:

  • Payment errors and delays in compensation processing
  • Complex calculations and the integration of data from varied sources
  • Management of compensation disputes from the field

Rules to Follow with Sales Performance Management:

The practice of Sales Performance Management is futile without a firm understanding of the following:


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.


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

  • Design, model and roll out successful sales compensation plans
  • Easily allocate sales credits and manage crediting exceptions
  • Gain actionable insights from sales compensation, dispute and payment trends
  • Empower salespeople to accurately estimate their earnings