There is no denying that the role of a sales leader is becoming increasingly challenging day by day. Growth leaders are faced with the daunting task of achieving aggressive goals in a remarkably short period of time to combat cut-throat competition. Another important realization is that data is everything! With digital transformation taking hold, there is no doubt among sales leaders that data-led approaches to sales strategy are the way to go.
Digital transformation has also helped organizations adopt technology that can help them use their data more effectively. Nearly 80% of organizations are reinventing their business models by incorporating broader remote work capabilities, strengthening cybersecurity defenses, and delivering new digital experiences to customers and team members. While most leaders agree that digital transformation is a necessity in this fast-paced environment, most of them report that they are not able to keep up. This is understandable. It is not a one-step process that can be completed overnight! Moreover, with a wide range of tools doing so many things, it becomes impossible for leaders to prioritize.
While digital transformation is not a one-step process, Sales Performance Management (SPM) could be step one for sales leaders. What is Sales Performance Management? SPM is a data-informed approach to planning, managing, and analyzing sales performance. To put it simply, SPM solutions allow you to use your data in a more systematic and accurate way. This means that you can now gain better insights, identify risks and take more bold decisions in real-time.
Over the years, it is becoming increasingly clear that SPM is not just a preference but a priority for most sales leaders to gain the agility and accuracy needed to thrive in today’s business environment.
Effective SPM solutions have the potential to
- Facilitate collaboration between departments and teams
- Automate and integrate processes
- Allow leaders to effectively design and manage quotas, territories and incentives
- Boost sales ROI
- Address market and economic shifts
Let’s break down the complexities of SPM into three simple components to understand how exactly SPM softwares make it easier to achieve business goals
Sales planning addresses a wide range of questions including-
- How are accounts organized?
- How are salespeople assigned their sales territories?
- How many sales reps are needed in various geographies?
When properly done, sales planning can optimize the potential of each account to make sure you stay ahead of the game! Most often than not, poor planning can dramatically affect motivation levels and SPM makes sure that your sales reps are in the best position to succeed.
To put it simply, a sales commission is a monetary incentive that is given to a salesperson when they hit their targets. The aim is quite clear- growing your revenue by incentivizing your salespeople to earn more.
Your sales commissions structure is more important than you think. It is instrumental in-
- Motivating your sales team to do their best and keep employee morale high
- Attracting and retaining the best in the industry
As businesses grow, incentives also need to keep up! This means that sales comp needs to be flexible and scalable. Incorporating data from across the company is therefore key to good sales comp management.
Ideally, A phased approach to ICM would entail
- A Design Phase
- A Consultation Phase
- An Implementation Phase
- An ongoing Adjustment Phase
One of the most pressing issues that you face if you are in charge of managing the Incentive Compensation plan for your organization is this- How do you bridge the gap between having data and using it? Reports should be produced throughout the year using both the drill-down and the drill-up approach in order to get a granular view of the data for better forecasting. The information collected from these forecasts can be used to make intelligent choices that drive your sales and revenue. Forecasts can also help your company administration identify potential problem areas and be better prepared for ‘what-if’ scenarios.
Traditionally, data is compiled from multiple spreadsheets throughout the quarter and is analyzed at the end of the quarter to create a roadmap for the future. While this sounds simple, the truth is that this is a mammoth task when done manually. Any errors in these spreadsheets can completely throw off your organization’s predictions and you may find yourself struggling to meet goals.
Same issues crop up when leaders try to manage pipelines and KPIs. A good SPM software helps you mitigate these risks!
Kennect’s SPM streamlines operations, automates menial tasks and aligns processes so that your top sales people are free to do what they do best. Sell! Book a demo today!