A well implemented Sales Performance Management (SPM) and an effective and defined sales process are the two pillars that any organization cannot do without. They are the tools used for improving sales efficiency, boosting productivity, and enhancing overall business results. By using the SPM and steps to the sales process, it is easier to optimize the sales process and ensure that the sales team aligns with business goals, striving to improve and equip to succeed.
There is one thing about sales – it is never boring. Sales is rewarding, gives more freedom, and is constantly evolving. A sales rep has to be prepared for all types of buyers, they can be picky, cautious, impulsive, and even suspicious. And therefore, an important trait for a salesperson to have is to be creative, and adjust their sales techniques as per the potential customer’s needs and whims.
However, without a structured sales process and performance management, every member of the sales team will have their own idea of reporting and working, and the team might seem like a headless chicken. Sales process and performance management make the entire sales process more effective and efficient to help the representatives close sales quicker.
What is Sales Performance Management (SPM)
The sales performance is the measure of how effectively the sales team is delivering with respect to their targets. It is also the process which guides the salespeople to achieve the business goals. The SPM does not tell an individual sales person on what to do, instead, it gives the visibility and control over the core actions of a sales organization. It is a performance report of insight on how the leadership plans, forecasts, how the set targets are performing and also tells you how your planning, results and rewards are performing.
In the digital era, the Sale Performance Management (SPM) software is the key tool to manage core sales functions such as territory management, incentive compensation planning, training, and development of a sales rep. Sales Performance Management (SPM) Implementation involves the following steps:
- Have clear sales objectives
The first step is to define clear sales objectives. The goal should be to align the sales strategy with the business goals. The objective should be measurable and achievable and work as a road map to the sales performance.
- Collaborate and communicate with the sales team
This step is about communicating your ideas and expectations to the sales team. Your sales team should clearly understand what is expected of them. The two way communication opens the channel to feedback which is essential for any marketing plan.
- Set key performance indicators (KPIs)
This is necessary to know how the sales team is performing. This data can be connected to the organizational strategy for a broader overview. The common indicators include the number of new leads generated, conversion rate, average deal size, revenue per sale, customer retention rates, etc.
- Employ sales analytics tools
You need complete visibility in results to measure them correctly. Use tools for data analytics to get a sales performance report in real time. The data should be clear, easy to understand and actionable.
- Incentivize
These can include bonuses, commissions, free giveaways, dining, trips, and so much more. Incentives are to be aligned with the KPIs and are a great way to keep the sales team motivated to achieve or exceed their targets.
- Invest in regular sales, training, and coaching
This helps the sales team get where you want them to go. Regular training, courses, and modules help the team work on their weak areas and improve the negotiation skills.
- Monitor and review performance
Sales is a regular and ongoing process. Continuous review of performance points out the weak areas, and works on areas of improvement. The data analytic tools are a great way to help monitor the sales team’s performance.
What is a sales process?
Put in simply, a sales process is a set of steps that a sales person needs to follow to turn a lead into a closed sale. It is a process which turns the customer’s thought that they need a product into an actual purchase. The multi-step sales process defines the roadmap for a salesperson in the journey of converting a prospect.
According to researches, the top salespersons spend about 6 hours every single week on finding and researching on leads or prospects. The objective of sales process is to present a standardized process which gives the sales preps the freedom to decide what steps to take and when. It can be used to measure, forecast mange the sales process. About 90% of the high-ranking businesses use a formal sales process guide.
A sales process is not a destination, it is a continuous process which you need to iterate, refine, and innovate as you go along the customer’s journey. The sales process uses advanced analytics, machine learnings and all the benefits of the digital era to give insights of the sales environment to help improve the performance. Here are the simple steps to an effective sales process.
- Prospecting which is identifying the potential customers. New early stage leads that have shown interest in your products or services. This part of the sales process includes cold calls, email contacts, social media leads, inbound marketing, and networking.
- Qualify the leads based on BANT i.e. budget, authority need and timeline. This helps the team focus on high potential leads. This is generally done over a call or conversation where the sales rep will ask carefully placed and tailored questions to the client to determine their fit.
- Needs assessment is the next step aimed to understand the pain points of the leads. This step is all about asking probing questions to the lead to identify the specific requirements.
- Presenting solutions based on needs assessment. It is a way to make sure that your lead sees your product or service as the ideal solution to their pain points. The pitch needs to be tailored to meet the specific needs of the client.
- Handle objections. This part of the sales process is solving concerns about price, functionality, or timing of what your business can offer to the client. The response should be clear and reinforce the value of your product.
- Closing the deal is the last stage of the sales process. This can in the form of a product delivery, signing a contract, or a service access, proposal, or negotiation.
- Follow up is an important part of the sales process and it is the part where the sales rep builds a cemented relationship with the customer. It helps with building up customer satisfaction, and opportunities for upselling or cross-selling in future.
- Nurturing the customer relationships. This part of the sales process includes communications, offers, personalized customer service, feedbacks etc.
Both SPM and the sales process help improve the efficiency and conversion rates for the sales team.
Read Also: 10 Successful Sales Techniques to Close More Deals
