Sales performance management –why do businesses need it? Sales performance management (SPM) is a key term used across industries of all sorts and types. It is primarily focused towards maintaining optimal sales performance using the best practices and relevant tools. Various methodologies and metrics enable businesses to drive superior sales performance. Effective and efficient management is most desirable when a company intends to:
Improve sales forecasting Increase sales outcomes Boost revenue
In other words, it can be called a subset of business performance management as sales are an integral part of it. In fact, the strategies behind sales performance management must align with the objectives of the business.
Performance management, whether in context with sales or business, is crucial for an organization to set goals, to plan, build strategies, and execute the same to obtain higher business objectives. A sales manager does the job of sales management and focuses on typical areas such as – individual goal setting, territory management, skill enhancement, sales coaching as well as hiring to secure the best performance. Sales performance management comes next and focuses on ways to keep enhancing it through analytics and a continuous process of sales effectiveness. SPM requires sales reps to be trained consistently, evaluated regularly and encouraged to practice repeatable behavior in order to bring everyone on the same platform. Effective management also requires going beyond traditional practices and trying metrics to analyze the performance of sales reps and sales as a whole. These metrics are used
strategically in performance reviews, benchmarked against the most widely accepted practices followed by top companies, to get better evaluation. Senior executives are expected to provide their inputs and ensure that everything remains aligned with the company’s objectives and the team can achieve the set standards. Why do we need sales performance management? Companies are in the urgent need of sales performance management and they are using it to optimize their own sales performance. They need it to secure growth and maintain higher revenue as per the company’s expectations. In addition, shortcomings of traditional sales management practices compel senior executives to implement advanced SPM tools. Inaccurate sales forecast, lengthened sales cycles, lack of alignment and sales optimization could be possible shortcomings with traditional management. Investments on lead generation that are not performing well could also be one of the reasons why businesses need SPM. Sales performance management tools enable companies to monitor sales, conversions, and calculate commissions of sales reps without any hassles. In the process, it helps avoid conflicts, enhances satisfaction, saves time, and boosts productivity thus enabling better management.
SOURCE:- https://goo.gl/5QnYzN