Sales performance management, or SPM, refers to the approach that incorporates techniques and methods for hiring, managing and incentivizing the sales team of a company in order to reach peak performance. It should come as no surprise that companies that implement SPM into their sales department outsell companies that do not. In this article, we’re going to go in-depth with SPM, and look at how you can implement it into your own company.
What Does SPM Look Like in a Business?
Basically, when implemented, the goal of SPM is to guide the sales team towards best practices that will improve its ability to sell products and services. It operates on multiple levels of the sales process, with an emphasis on educating and motivating the sales professional. However, this does not mean that SPM’s only goal is to create an incentive structure that compensates and rewards the right behaviors. The incentive system is just one part of the SPM whole, which takes a much higher-level view of the organization and its practices.
How is SPM Implemented?
An SPM system is implemented in 5 general steps:
- Strategy – It all starts with a sales strategy. The best way to go about this step is to gather relevant stakeholders and form a consensus on the best go-to-market tactics, value differentiation, and the tools, processes, technologies and training that will go into making the strategy a reality.
- Structure – The next step involves building the structure of the sales organization. This will include documentation regarding the sales process itself, the systems and software that will come into play, and the hiring/assignment process for the team.
- Measure & Analysis – This step is a key component of SPM. Once the structure and strategy are in place, you will have a stable foundation from which you can measure a wide variety of metrics, including critical behaviors, skills, practices and outcomes. Then, you can analyze the data in order to identify which of these factors have the most positive impact on performance.
- Team Management – Once the analytic work is completed, your team managers will have the insights they need to coach their team and implement best practices at an organizational level. Metrics will also help with team composition, from hiring to structuring individual sales groups.
- Feedback Loop – As metrics are used to implement best practices, and the sales process improves continuously, it is time to loop the system—this includes recalibrating the strategy, restructuring the sales organization, gathering new data, and implementing the insights at the team level.
Sales Performance Management Software
SPM software is designed to automate the process discussed above, and uses artificial intelligence to predict outcomes across multiple metrics, dimensions and levels of the sales organization. Software tools such as Funnelocity also provide a certification score for each employee based on detected best practices, techniques, and sales methods, allowing the management team to identify top performers, average salesmen, and underperforming employees. This information is invaluable for the management team, allowing the team to revise and build better incentive structures, identify problem areas and individuals that require more coaching, and implement the optimal behaviors exhibited by top performers.
See Predictive Sales Software in Los Angeles
If you would like to see predictive sales software in action, contact Funnel Metrics today to schedule a free demo. Our support team will also be able to help out with any other questions you may have about the software, or sales performance management in general. Do not miss out on one of the most important catalysts for growth that your company can implement!