In the realm of sales, the buzzword of the moment is Sales Performance Management (SPM), which not only focuses on compensation management but also incorporates software solutions to monitor day-to-day sales activities. Effective sales performance management is a combination of software and management of people that trains the sales team to evaluate data, manage quotas, discover possibilities to improve, and so on. This training helps the sales force be more successful. Through the implementation of SPM systems, companies of all sizes and operating in a wide range of industries are able to improve their sales operations and experience growth at the organizational level. It is anticipated that the size of the global SPM market will increase from USD 1.5 billion in 2020 to USD 3.4 billion by 2026, at a compound annual growth rate (CAGR) of 14.9% during the course of the forecast.
Also read: Why is Sales Performance Management important?
Leading SPM solutions from Varicent enable businesses to scale their digital operations. Through a centralized platform, Varicent delivers critical information, insights, and tools that boost performance, productivity, and revenue for businesses. Ultimately, SPM solutions help sales representatives, sales teams, and organizations improve their sales operations to achieve their business and revenue goals.
Here’s a closer look at how sales performance management helps enhance the employee experience:
Encourages employee training and development
It is essential for every sales representative to adapt to the constantly evolving market and trends. This is even more important now with hybrid and remote working models in place. SPM solutions enable businesses to put together training opportunities for their sales team. Its mobile presence facilitates anywhere, anytime access to the training resources. Additionally, it helps keep track of how sales representatives are doing at every stage of their training, identifies those who are underperforming, and the precise areas that require improvement.
The team benefits from the training by learning new approaches that will be useful in their daily work tasks and by staying current with their skills. However, it helps the sales representatives become subject-matter experts by helping them learn new sales tactics, methods, channels, and so on. All in all, sales training helps improve, maintain, and manage the organization’s sales performance.
Keeps employees motivated
What keeps a sales team motivated? Though the answer might be subjective to each individual, achieving targets or business goals is a major source of inspiration and engagement for any sales representative. Setting clear expectations further motivates the sales workforce to achieve these goals. The way to do this is by setting sales quotas for each individual or team and implementing processes. Quotas must be set correctly; if they are too high, the sales team will quickly become demotivated, and if they are too low, high commission costs can incur losses to the organization. The right SPM software such as Varicent helps make informed decisions and set realistic sales quotas by accessing real-time data.
Furthermore, SPM increases transparency with regard to compensation plans. The sellers need to know the compensation amount, the goals, quotas, and key performance indicators (KPIs) aligned with this compensation, the timelines, and everything in between to stay motivated. Sellers are motivated and inspired to keep working hard when variable compensation is transparent.
Enhances team communication
The expectations for each individual representative, the sales team, and the organization as a whole need to be communicated clearly throughout the workforce. Varicent SPM solutions, with features such as messaging and chatbots, eliminate long email threads and phone conversations and help address and solve common queries instantly and easily. Additionally, the features make it simple to resolve disagreements and misunderstandings. The streamlined communication process creates a positive employee experience and helps facilitate trust between the sales team, management, and the entire organization.
See how Vatsa leveraged SPM solutions to help a US-based healthcare organization align their sales operations with their business goals for multifold growth.
Maintains a positive team culture
Due to SPM’s transparent compensation processes, organizations can avoid over-or underpaying the sales team, resulting in a more focused and motivated workforce. The transparency, streamlined communication, and collaboration provided by the Varicent SPM solutions help build a positive work culture that aligns with the company’s core values. Gamification integrated with SPM also helps celebrate all wins, understand weak spots upon failure, and improve them. This not only helps with talent retention but greatly aids talent acquisition. Overall, fostering a positive work environment is crucial because a skilled, engaged workforce is what drives sales performance and organizational success.
For organizations, sales performance management by Varicent is a blessing as it helps streamline operations, discover new opportunities, develop reports and forecasts, and gain a competitive advantage in the marketplace. It also provides leadership counsel to sales leaders to improve decision-making and enhance strategies.
Vasta’s sales performance management solution helps optimize your revenue growth, boost efficiency, and implement better planning to provide remarkable performance both internally and externally.
Contact our experts at contact@vsplc.com to learn more.