Sales Performance Management (SPM) is the art of managing the sales processes within a company, which will improve its ability to sell.
On a basic level, SPM improves operational efficiency and overall performance of the organization’s sales department by diverse digitalizing operations with integrated workflows in one central system.
It contains real-time analytics, dashboards, and reporting capabilities. SPM supports the process of managing and planning sales strategies and incentives. It can help automate your operations and integrate various functions to ensure customer satisfaction, order fulfillment, and progress against targets.
Here is how a good SPM can benefit your sales function and your organization:
Benefits:
#1 Improves revenue prediction
Precise sales performance management tracking helps you to assess your sales force’s strengths and weaknesses, their downfalls, and potential. Doing this helps to have a clear-cut idea of which metrics are most important in determining who deserves what when it is time for paycheck distribution.
#2 Smoothens sales pipeline
To have an organized team, sales representatives need a system to understand what is expected of them. When everyone is aligned with the company’s SPM strategy and processes, your team will be more efficient overall. This will motivate them to enhance their skills, and as they align with your strategy and approach, your pipeline will improve significantly. As a result, you are likely to gain more qualified leads.
#3 Reduces errors and inefficiency
Sales performance management keeps sales efficiency at an all-time high and prevents costly overpayments and compensation/territory disputes. Compensation metrics are visible to sellers, providing them with the motivation to achieve revenue targets.
#4 Enable better employee training and development
Your sales leaders can collect metrics from all channels and put them in a robust yet straightforward dashboard, giving people a holistic view of the business. This saves time by enabling sales managers to gauge performance trends across their sales organization quickly. When your entire sales system is aligned with your company strategy, you can focus your investment on enabling or training teams to provide optimal support for your goal.
#5 Increases sales territory assignment accuracy
A comprehensive sales performance management solution such as SARA AI will provide you valuable insight into what works and what doesn’t across your territory regarding how your team is performing in their fields of specialization. It also allows you the freedom to assign representatives by what is working for your company in that region. This helps you better manage their performance via custom tracking and focus on what truly matters.
#6 Ensures fair and rewarding compensation structures
Sales performance management in a single, connected system gives companies a complete, up-to-date view of what’s happening with their sales compensation plan. Administrators can quickly see which components are costing or making the company money and change details that need refining. If necessary, admins use SPIFs (Short-term Incentives for Forecast Accuracy), bonuses, or accelerators to make changes and get their sales back on track!
If you’re looking to optimize your sales function, get in touch with us and schedule a demo now.