Do you prioritize checking up on the productivity and performance of your sales reps?
If you said yes, cheers!
But if you don't, it's high time you should. Sales performance management software is a tool that works in collaboration with sales enablement software.
The core motive of both the softwares is to enhance the productivity and performance of your sales team, not only on an individual level but on a team level.
In this post, we’ll learn:
- What is sales performance management?
- Why is sales performance management important?
- How does sales performance software work?
- Components of sales performance management
- Metrics to measure sales performance management
- Tips to implement better sales performance management
Everything about sales performance software and how you can use it to up-level your sales strategy.
Let's get started!
What is Sales Performance management?
Sales performance management is a way to measure the sales team's performance.
It is to ensure that your sales team is performing at its best possible level, hitting their goals, is the most productive, and meeting the revenue goals. Sales performance management assesses a sales rep on both individual and team levels. As a sales leader, you have to motivate your employees to work up to their full potential.
Sales performance management software is a tool that helps you to keep track of all the activities associated with sales performance. Sales performance management includes tracking employee-related activities, leads monitoring, and data organization.
Sales performance management software is a blend of people management and software and relies on data, insights, and automation. A study shows that the sales performance management market will rise to 3.4 USD by 2026 because more companies are willing to invest in it to improve their future.
Why is sales performance management important?
Sales performance management software matters to companies due to the following reasons.
1. Helps predict future sales trends
Sales performance management software helps to make better decisions for the future. The most significant benefit of sales performance management is to predict employee compensation rates. For instance, if a sales rep makes a commission of 15% for task completion, the sales performance management software will predict the quality of the work done, and based on that, it will allow the commission to the sales rep.
2. Builds stronger sales pipeline
To grow a successful sales pipeline, you need solid management tools to forecast your sales performance. The sales pipeline includes steps such as lead generation, follow-up, and asking for referrals which need analysis of factors such as conversion rates.
3. It helps reps enhance their skills
Sales performance management software will inform you about the potential roadblocks you might face in your sales journey. Accordingly, sales reps can prepare themselves for those skills. Sales performance management software and enablement software can train sales reps to work to their best abilities.
Recommended read: Importance of Sales Performance Management Software in the New Normal
How does sales performance software work?
Sales performance management software has benefits beyond measure. There's a certain way it works, and here's how it works.
1. Sales and revenue management
It's a way of generating revenue and sales. You must define your territories to meet the organization's objective in sales and marketing. Advanced analytics tools and sales forecasting tools can help.
2. Territory and quota management
The next most important step is to find territories and sales quotas. Setting territories is an essential step because that gives an edge to the sales team on how to achieve the sales objectives. By setting up the quota management, you put reps in a position to achieve larger sales objectives.
3. Workforce management and capacity planning
Once you have set the deadline for the quotes, your sales team is ready to work on achieving sales objectives. Capacity management determines the overall capacity of the sales teams to accomplish the goals.
4. Incentive compensation management
The incentive compensation management will allow you to decide the rewards each sales rep deserves for the value of efforts they're putting in. It's the process of motivating the sales reps to perform at their best.
Profitability is the measurement of the overall profit that the organization has made during the entire process. It gives an idea about the organization's strategy and the progress it has to make.
Components of sales performance management
Here are a few of the most critical components of a sales performance software:
- Sales planning - Sales performance software helps to set the revenue goals and expectations based on the analytics and insights. Also, it helps to determine the sales quota for the teams. Percentages that'll assist the groups to grow and meet the business objective. Another benefit of sales performance software is territory management which allows sales reps to set themselves in a position to get the best leads. Last but not least, sales performance management software allows companies to determine the capacity of their teams by mapping out the quantity required to fill.
- Sales insights - Sales insights are a great way to determine the sales strategy for the organization. The advanced level data such as meeting analysis reports, lead generation statistics, and conversion rates need to be measured precisely. The sales performance management software determines the percentage of commission each sales rep should get after completing the tasks.
- Sales incentives - The incentive compensation policies inspire sales reps to perform better. When the sales reps are rewarded for the work, they've put into getting the work done. They get motivated to get more work done. With the help of sales performance, software sales reps are provided with the proper amount of stipend.
Metrics to measure sales performance management
Here are the most important metrics to measure sales performance management.
1. Average deal size
The average deal size is the total number of deals performed by the sales rep divided by the total dollar amount of those deals. Average deal size gives an idea about the quality of deals, and it'll tell if you're landing smaller, more significant or average deals.
Average deal size will also determine the number of deals. Whether the deals you're landing are helping you to reach your sales objectives or not. You can upgrade your deal size accordingly.
2. Conversion rate
Conversion rate is the most vital metric to track because it determines whether your sales strategies are giving you the desired results. The conversion rate specifically determines the lead conversion rate.
For instance, If you targeted 600 leads and 60 of them are converting, then you have a 10% conversion rate. Conversion rates can help you to set the revenue goals, assess the reps performance, and determine the win/loss rate.
3. Bottlenecks in the sales funnel
Sales funnels consist of stages that are correlated with each other. The funnel has different stages from top, bottom, and middle. Each stage is concerned with leads from hot to cold to warm. If there's a leakage in any one of the stages, the sales funnel will collapse. So, it's essential to measure funnel performance from time to time.
Sales performance management software will inform you of the factors you need to work on to recoup the leakage in the sales funnels.
4. Lead response time
Lead response time is the average time the sales rep takes to reach out to prospects after their first encounter. For instance, if a sales rep reaches out to the prospect within 5 seconds of the first encounter, then.
Recommended read : 12 sales metrics to kick-start your sales analytics right away!
How can you implement better sales performance management
It takes time to learn best sales performance practices to enhance productivity. However, you can get started with the basics as follows:
1. Have a strategy in mind
Sales performance management provides tremendous data that you can utilize effectively. But you need to know how you want to implement the stuff and determine the factors that matter the most to you. For instance, if you're going to create a lead generation or follow-up strategy, having a clear idea of how you want to use the data you gather is the correct way of using sales performance software.
2. Decide what performance metrics you want to measure
Sales performance management software lets you know everything you need about your performance. Decide which performance metrics you want to measure. Decide the KPIs such as the number of followers count, engagement rate, and the number of new leads generated for your business. When you have exact performance metrics in your mind, it's easier to track the progress of your sales campaign.
3. Maintain transparency and clear expectations
Give sales reps access to different tools and products. Having transparency among team members increases the trust factor. You'll have a lot of sales data about your company like customer response, competitor details, Leads score, etc. Unless you share all the information with the team, you won't be able to track your team's sales performance.
4. Let everybody get involved.
The sales success of the overall team is the combined effort of each sales rep. As each team member knows about your sales efforts, they can align with your sales goals. It's essential to have transparency among sales leaders; sales managers and team members should know the goals the team wants to achieve.
Keep asking for everybody's opinion on the team. The more you involve your sales team in the project, the better results you get.
5. Search for the better opportunities
With the amount of data your sales get with the help of sales performance software, you can analyze what's working and what's not in the market. You can decide how you want to put a step forward towards becoming a better version of yourself.
You'll get an idea about the areas of improvement where you work and set yourself apart from the crowd.
Recommended read : Modern Sales Performance Management Software: Value & Benefits
Sales Performance management is the need of the hour…
Did you hear me?
There are several reasons why you need sales performance software.
- To motivate your employees to perform to the best of their potential.
- To measure your sales performance on an individual and team level.
- To set the KPIs and the metrics to track your leads and reps?
Want to get started? Start with CONVIN!
Convin is a conversation intelligence platform that records, transcribes, and analyzes sales conversations between reps and customers to give you practical insights on what performance keywords, strategies, and techniques you should focus on.
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