As a sales leader, your ability to develop and retain your sales rep is more important for the future of your company. The average sales professional turnover rate is 35 percent, and this is a dramatic number compared to the average turnover rate of all industries which is just 13 percent. When your sales reps are building the skills they need to feel prepared and successful in their roles, they are more likely to report job satisfaction and a feeling of being values by their employer. These are factors that make it less likely for them to jump ship.
Sales performance management
Sales performance management refers to the process of ensuring each member of your sales team is working to achieve organizational goals and objectives. A robust sales performance management process entails training, monitoring progress, and developing new skills for sales professionals. You need to establish sales performance management for the overall success of your team. Here are some of the reasons that show why it is such important.
Predicting future sales trends
Sales performance management tracking can help in providing valuable data that enables your organization to forecast future sales trends and employee compensation rates. This is more so the case for commission-based compensation structures. If a sales rep earns 15 percent commission for each deal they close and are projected to close about $100,000 in sales for the quarter, then the finance team can anticipate an allocation of $15,000 to pay out as commissions.
Allows sales reps to build their skills
High-performing sales teams are twice as likely to provide ongoing training to reps as compared to low-performing teams. A sales performance management plan helps in adding structure and accountability to your training process. In your sales rep development plan, you need to include tools such as; required training for sales enablement tools, informational interviews for sales reps within your company, supplemental reading from sales thought leaders, and any other relevant material.
Build stronger sales rep pipelines
If you have a structured performance management plan in place, your organization will have the framework to build a pipeline for sales reps with valuable skills, who can be very effective and efficient in driving sales for your company. You need to have clear and visible goals and incentives that are needed to build well-rounded sales professionals.
There are key steps and guides you can take to implement an effective sales performance management process. You will need to decide on the performance metrics you need to assess. Performance metrics should measure each task and activity concerning how well they serve overall business objectives. You also need to communicate objectives to your team and get them fully involved.
You also need to coach and develop your reps so that they can build performance improving skills. Many reps have identified skills they want to build and improve on. Have training in place to ensure they can build and advance on all those skills they need. Challenge your sales teams to always be current when it comes to seeking knowledge.