Why Your Business Need Sales Performance Management Backup
In brief, Sales performance management refers to the methodologies and practices that help the senior officials like Sales Managers optimize sales force productivity and related means increasing the volume of sales or services. Why do enterprises think of implementation of SPM or sales performance management? The most relevant answer to this question is, obviously under circumstances if it is found that the target sales as well as revenue out of sales proceedings is not up to the mark, this is the ideal solution. For example, equipped with great sales force, dedicated channel partners and required sales strategies, if you find that that sales figure is impressing while the expected revenue is not achieved, take it granted that there’re lacking.
This is a great failure and needs fixing immediately. Why revenue shows lower than your company’s expectation? There may be extended sales cycles which is not well administered; lack of sales team management; improper sales forecast; unrealistic action plans; detachment in sales and marketing policies, ineffective channel partner policies and so on. That is why; all big companies hire services of high profile sales performance management consultants like Mark Stiffler to attain the highest productivity. Synygy is a global organization that offers specialized consultancy services for sales force management to pharmaceuticals, insurance, manufacturing and other retail business enterprises.
According to the personality that, in this intensely competitive market, it has become significant for companies to make proper planning, undergo close monitoring to ensure that sales and marketing have been well tuned or sales vs. cost ratio is up to the mark. Typically, in the earlier period, most companies used to evaluate their performance of sales two times a year. However, living in 21st century this kind of analysis is completely unrealistic. If the time gapping is too much then you have all chances to loss the potential of revenue as well as margins out of your sales per unit, and this can be simply disastrous in the long run.
As per experts that sales performance management is a combined approach of conventional sales management theories with new generation looks. This is more focused, thorough, system based and metrics driven that helps in optimizing resource utilization and thereby advances sales performance. The whole objective should be generation and reaching of predicted revenue scale. Most importantly, your sales team may combine higher performers as well as poor performers. If sales persons are underperforming they can never reach the given target or quota. Thus, this will hamper the overall performance.
The persons who perform well are not just due to they are incentivized, or they are more focused. That is where proper analysis and management is significant. As per version of Mark Stiffler that business enterprises that don’t follow SPM, typically find that 50-60% of their sales persons to reach the sales quota. Notably, in the same organization when SPM is employed it can boost sales figure magically making over 85% of the sales representatives performing. It has been established that businesses using the plus points of SPM can achieve 3 times better out of sales revenue opposed to companies that are non-SPM.