10 Tips for Sales Performance Management

Sales Performance Management

10 Things Every Sale Manager Should Know About Sales Performance

To a sales manager, understanding things which can lead to the company achieving its set targets is very important. Here is a list of 10 things a sales manager needs to know about sales performance:

1. Missing the target

More than two thirds of sales persons miss the set target. Almost a quarter of companies are even not aware whether the set targets are achieved or not.

2. Expected deals

More than half sales people close their days having achieved less than 40% of the expected target. When salespeople are pursuing a qualified target, 17%are likely to win less than 25% of their deals while 37% will win less than half of their deals and only 46% of salespeople will be able to win more than a half of the expected deals.

3. Qualifying opportunities

The best sales people in an organization are 2.5 times better at qualifying leads and they are also likely to be 2.5more times qualified. At qualification almost three fifths of the salespeople are seen as effective.

4. Customer pain or problem

Two fifths of salespeople cannot understand the customer’s pain. Most of them when a customer has a problem, they either panic or attempt to assist. Sometimes, this can end up in disaster if one ends up addressing a problem the customer never had or did not realize it existed. Among sales professionals only 61% feel good on their ability to uncover customer problems and such professionals are 28% more likely to achieve their goals.

5. Correct pipeline

Sales people who feel their pipeline is correct stand at 46%. It is important to note that sales people spend more than two and a half hours making inaccurate forecasts and this should be a major concern to the management.

6. Playbook

Almost half of sales teams do not have a playbook. Majority of teams with playbooks show clear results. Companies which have a defined sales process are 33% likely to be higher performers compared to those which do not have. For companies having clear processes, the winning rate is way above 50%.

7. Accessing key players

Only more than half of sales people are able to access key players. Sales people classified as top performers access key players 60% of their time while poor performers access key players less than 40% of their time.

8. Alignment of sales and marketing

Where sales and marketing are aligned together, overall revenue is 25% higher and top performers in an industry are likely to bear their origins in organizations where marketing and sales have been incorporated together.

9. Competition strategy

39% of the top performers are companies which use competition as the main strategy. Every organization needs to develop a competitive methodology which has a structured mechanism of differentiating competitors and finding ways of having a cutting edge over their rivals.

10. Sales contribution to strategy

Where sales are incorporated as part of the company strategy, the revenue is likely to increase by 15%. There is a positive relationship between an organization strategy and performance of its sales. Companies which are classified as top performers display this behavior 53% of their time.

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