The importance of measuring sales team performance and proper commission tracking

Written by Mauricio Duran | 03.31.2016

Keep track of your sales team performance and identify opportunity areas

Evaluating sales team performance and tracking commissions has always been significant for a business, and now that businesses are more data-driven, it is crucial for every sales team to have good time and productivity and commission tracking practices. It doesn’t have to be hard to use sales team performance tracking practices that can show you where you’re wasting time, and where you should put more energy to get the most out of every minute you spend selling.

So how, as a sales manager, do you create leading indicators and track the behaviors required today for sales tomorrow? One of the most common answers for this question is for a manager to take a deep dive into the places sales reps struggle most, and get actionable takeaways to ramp up your sales team performance. This enables a company to come up with an objective form of measurement that allows you a glimpse into your future before it’s too late to change the direction or solve any issues with your team.

There are different variables to measure the sales team performance:

Volume of sale in dollar – this is featured through measuring performance by quality where key elements of sales volume, dollar revenue generated and accounts are required. According to most sales managers it one of the simplest ways to measures the sales team performance and it includes deductions that are refund-related.
Total profit generated – this is one of the easiest estimates to work with because it is the amount of profits generated by each sales person, which is the amount a client paid less the sales person’s product or service cost.
Number of new account opened – this is one of the key element when measuring sales team performance through quality and it involves keeping track how many accounts a sales person has opened.
Number of “calls” made to existing accounts – this falls under measuring performance banked on quality and it involves customer relationship satisfaction and margin achieved.
Dollars spent entertaining customers – this can easily be described as measure of performance within agreed expense budgets that involves travel cost for sales people and more expenses in that line.

Measuring the sales team performance and tracking their commissions can be challenging because you have to deal with multiple dynamics that influence sales behaviors and, ultimately, results. But don’t’ worry, technology can be your ally: with a tool like Blitz, you can automatically identify how your sales reps are doing in different variables according to the commissions they receive.

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