Types of sales rep performance measures
There are a variety of measures that you can use to assess and manage your sales rep performance, all of which make a perfect fit for your sales compensation plan. Let’s talk about them!
To make up the sales rep performance management framework, we recommend you organize your choices into these 4 key components:
1. Sales force effectiveness drivers
Perform periodic assessments and evaluations of the decisions and programs you perform to control and shape your sales force.
2. Salespeople
Test your team’s knowledge, competencies, skills, attitudes, behaviors, motivation, and employee satisfaction through peer and subordinate periodic reviews.
3. Salesforce activities
These activities include account planning, targeting, calls, reach, frequency, hours, coverage index, customer service, prospecting needs assessment, demonstrations, proposals evaluations, solutions, and maintenance. All of which have to be taken into account while measuring sales rep performance.
4. Customer results
Customer satisfaction and results are also really good measurements to know how your sales reps performance is going. Pay close attention to customer relation, customer loyalty, repeat rates, complaints about the sales force, returns, penetration, message memorability and percentage of sales growth from existing customers.
Let’s not forget that sales rep performance management consists of the ongoing planning, coaching, measurement, communication, coordination, evaluation and training activities that will ultimately lead to success or to corrective actions for goal achievement in your sales department.
Commissions are most effective when they are based on objectively measurable criteria with short-term impact. Therefore, with a good and effective sales rep performance management and with a sales commission tracking software like Blitz, your commission plan will be easier and smoother to perform. Set and achieve all your sales goals.
Sources
The Complete Guide to Sales Force Incentive Compensation: How to Design and Implement Plans that Work. Authors: Andris A. Zoltners, Sally E. Lorimer, and Prabhakant Sinha. 2006: New York, NY. Amacom Editorial.