The sales team plays a crucial role in any organization, and an efficient one brings clients, generates leads, and eventually increases revenues. Therefore, it is critical to track sales performance and assess it periodically, so that changes can be made whenever necessary.
Sales Performance Management (SPM) is the most effective way to go about this. It enables you to measure the sales team’s progress, difficulties, and the challenges ahead. SPM improves efficiency by automating and uniting sales offices’ back processes like record maintenance, settlements, clearances, accounting, and IT services.
However, it would be best to have a solid sales performance management software for automation with all the necessary features for delivering the results you want. The software enables you to conduct various activities smoothly without disruptions with hiring sales reps and training.
What is SPM?
Before understanding the importance of the software, it would be helpful to know something about sales management performance. SPM refers to a set of functions that automate and unite back-office processes. One of its objectives is to improve the efficiency and overall performance of the sales teams in the companies. It includes quota, territory, compensation management, gamification, and advanced analytics.
Efficient sales performance management enables the organization to improve the products it sells and its selling process simultaneously. It allows the company to get ahead of its competitors besides enhancing productivity and improving the close rate.
For example, one of the vital parts of planning sales is knowing where to sell. Sales performance management involves identifying a particular area and assigning a team to it. The number of reps required in an area, account allocation, etc., are covered in planning.
Another example is incentives like commissions and bonuses, in which companies encourage sales teams to sell specific products to target customers in a stipulated time frame. Since incentives change quickly because of unpredictable market conditions, leaders should have the option of adjusting them.
However, formulating a strategy is more complicated than you might think, especially since several parts are interconnected yet independent simultaneously. It is also crucial to maintain a transparent strategy, provide salespersons with the analytics they require, ensure the interconnected processes, and gather the necessary data.
What role does the software play?
The sales performance management software enables a business to overcome the challenges described above. It helps the managers coordinate and monitor the various activities across a sales team. Those activities include sales training, recruiting new sales representatives, managing sales territories, advanced analytics and reporting, and incentive compensation.
The software visually represents a sales team’s progress and monitors how close each one is to close a deal with a client. It works to predict the future sales prospects of a company.
The companies generate a substantial amount of data during their sales processes. But they cannot gather them all in one place to get perspectives and insights. The software helps them do that while gaining access to the relevant data.
Therefore, the SPM software helps identify the leads, create sales pitches, monitor your competitors, and design a strategy accordingly.
How to select an SPM software?
Since the software is essential for efficient sales performance management, you should be extra careful while selecting one for your organization.
Here are the features should you look for:
Does it have a flexible design plan?
An organization has different incentive compensation plans (the money a salesperson earns in proportion to their clients or products they sell). Designing a project can be difficult without the necessary data and details.
So, choose a software that offers you a flexible plan design, letting you perform functions like gathering data, running tables, creating a commission table, and importing data. Moreover, you should have the option to customize a plan quickly.
Can it promise powerful data management?
Data plays a vital role in helping you form a strategy or gain insights into one. However, traditional tools make the data management process challenging because they involve extensive manipulation, error-tracing, and cleansing.
It is vital to have software that is compatible with your system. Choose one which provides you with a regular supply of data whenever you require it by providing flexible, pre-built pipes. That way, you can avoid tiresome ETL processes and data errors.
How does it deliver on performance reporting?
Salespeople expect to receive their compensation shortly after they receive a deal. Traditional commission tools fail miserably because they cause significant delays between deal closures and representatives receiving their commission.
Frequent delays impact the sales experience. However, efficient software follows a powerful data approach that lets you motivate the team and agents by allowing them to track the performance metrics, commission payouts, leaderboards, estimates, mobile devices, and what-if calculators.
When the salespersons can track their performances, it automatically encourages them to gather more leads and bring in clients.
Is there a sales rep portal?
Before choosing a software, check whether it has a configurable sales rep portal since salespersons find that to be of much help. A rep portal lets them view the commission results and sales performance without facing difficulties.
What are the workflow and chat features?
Workflow and chat features are required because they streamline commission approvals and help resolve disputes. Even if a conflict exists or edge cases occur for some reason, it should fix them quickly with its powerful override capabilities with the entire audit history.
Does it let you comply with accounting guidelines?
Sales compensation is a variable expense, which differs every month depending on various factors. It operates by following specific guidelines, which a business must strictly follow.
Therefore, you must choose an operating platform that lets you comply with the accounting guidelines. It should also have simulation and forecast capabilities to enable you to predict commission expenses and manage accruals. You can use the data to know the coverage models, capacity planning, and territory designs to ensure your team meets its targets.
Can it provide top security?
Good software provides top security features. Go with one with SOC 1 Type I and SOC 2 Type II compliance, which indicates the safety and security of your data. It would help if the software is certified in security control with organizational systems.
A sales performance management software is indispensable for getting better performance from your sales team, because it provides you with the necessary tools and features. It offers several advantages, from higher productivity to a data-driven approach.