Optimizing the Employee Lifecycle with Better Sales Performance Management
Over the last month we've put forth a series of blogs aimed at outlining the five areas of sales performance management (SPM) and ways you can improve your company’s SPM strategies using all the tools at your disposal.
What leads to better sales performance management?
We’ve spend the last few weeks providing detailed tips to ensure the maximum performance of your sales teams.
In step 1: Hiring, Onboarding, and Training, you learned how to eliminate bad hires by honing your prescreening and selection process. In step 2: Planning with Quotas and Territories, you found that optimizing sales quotas and territories can add over 5% in sales from existing resources. In step 3: Giving Appraisals and Coaching, you uncovered that sales people who receive at least 3 hours of coaching per month achieve 107% of quota, while sales people who receive fewer than 2 hours of coaching achieve only 90% of quota. In step 4: Establishing Incentive Compensation and Rewards, you learned how a multi-tiered compensation model pays off with a 19% higher customer retention rate and 21% more sales reps achieving annual quota. Finally, in step 5: Introducing Sales Gamificaiton Techniques: you found that fostering an environment of friendly competition between all sales agents taps into their inherent competitive nature, increasing employee engagement. So why does all this matter? Because these five key components will lead better to sales performance management in your organization.
Tying it All Together
For too long, these separate components have operated in their own arenas, different jurisdictions with their own operational headaches. But when tied together, there is a huge opportunity. A cohesive system with a unified technology is the best way to maximize and accelerate sales and drive revenue in your organization. Without it, there is no way to improve sales force effectiveness and growth of your business.
By utilizing all aspects of SPM you ensure that you hire the right person for the right job and that their training doesn’t end with the completion of their onboarding process. You’re able to make sure they start off on the right foot with a realistic quota based on actual data. You help to make sure you retain and motivate them by compensating them accurately and on time. Finally, you engage them by tapping into their competitive spirit to drive adoption of behaviors. Each step taken individually can bring about some great, incremental growth to your sales productivity. But when linked and integrated together, that’s where you will see real transformational changes to your sales organization that will prove to be consistent.