SPM tools help sales managers to accurately monitor, understand, and make changes to sales processes deemed to affect the effectiveness and efficiency of the sales reps, based on sales key performance indicators (KPIs).
Unfortunately, SPM software is yet to be clearly defined. There are many vendors out there who still confuse SPM to incentive compensation management (ICM), probably because SPM suggests some high-level value proposition of incentive compensation management. Others have this confusion because SPM is a later category that originated out of ICM. We, however, cannot define SPM in this narrow manner because there are now SPM software solutions supporting more comprehensive approaches to management of sales performance. Besides, other vendors take a broader view of sales performance management but consider sales performance management to be a use case for their point solutions. A good example of such vendors is SAP which advertises SPM solutions, while defining SPM as a strategic function that can be achieved using a variety of SAP software pieces, instead of being a dedicated SPM product.
How to measure sales performance
SPM tools use sales KPIs to track and report on how well sales reps and teams are performing. The sales performance management platforms are tailored to understand the factors influencing sales success, and how those factors influence the bottom line.
Critical questions asked by a sales performance manager and addressed by SPM software are:
- What makes sales reps succeed? How does success look like in this company?
- How does sales performance affect the revenue earned?
- How can the sales performance be adjusted to optimize revenue?
Sales performance management is concerned with the motivation of sales reps through incentives, commissions, sales knowledge, following best practices, sales accountability regarding corporate goals, and projected revenue gains to foster a healthy competition that fuels the team’s success.Learn More
Comparison between SPM and Sales Enablement
Sales performance management seems to be closely similar with sales enablement, only that sales content that is a highly relevant component of sales enablement is not included. Usually, the most useful SPM software will offer a combination of features that enable a manager to view and adjust interrelated sales processes based on the approach the company takes in managing sales performance. Comprehensively, we can define SPM software as the suites that may include two or more of the following capabilities:
Sales training and coaching
This includes such things as skill development, onboarding workflows, and sales playbooks among others. These capabilities are usually designed around best practices for optimal performance and may be tailored to a specific sales rep’s performance.
This refers to incentive compensation management that allows managers and sales reps to better understand how revenue/ earnings are related to performance and how specific changes to performance would affect the revenue. It may include monetary functionality for commission accounting and fulfillment, as well as non-monetary incentives. However, it should be noted that ICM point solutions are usually branded as sales performance management even though not all SPM tools have full ICM capabilities.
Sales pipeline management
This can also be referred to as lead/prospect/opportunity management. The tools here will help both managers and sales reps to visualize and plan how to approach the sales pipeline, either manually or automatically. Sometimes, this may involve built-in best practices that automatically create alerts for warm opportunities, route certain opportunities to specific reps, and give recommendations on how to reach out.
Sales forecasting and sales performance analytics
These tie together all sales key performance indicators to offer a comprehensive view on the relationship between sales behavior, revenue, compensation, pipeline management, and change over time. Most of sales forecasting point solutions are designed to help users in generating the expected deals and projected revenue reports. Predictive sales analytics tools, on the other hand, help in generating highly accurate and specific set of expectations. However, it is true that predictive and analytics tools for sales and marketing focus more on models that use machine learning to update the expectations dynamically.
Sales planning and monitoring
This includes all goal planning tools, goal alignment tools, as well as those that help managers to doubtful scenarios and plan on the best changes to optimize sales performance. This may include the ability for coaches and managers to provide informal feedback to individual sales reps conduct job evaluations or conduct performance reviews.
The best sales performance management product
There are many sales performance management products out there, but the choice you make determines the success of your sales reps and the entire sales team and organization. The right choice of SPM software will come in handy to give you dynamic insight into your entire organization so that you can easily anticipate market changes and act accordingly. Besides, the software solution will help you to motivate the right sales behaviors, maximize selling time, and model future performance, all while keeping your company flexible, connected, and prepared for the future.
This is a cloud-based customer relationship management software that drives efficient sales processes enabling total control over the complete customer journey. This includes sales performance management as the software manages the entire sales cycle. Bpm’online sales offers out-of-the-box processes that serve as best practices for opportunity management, quote management, order and invoice management, as well as lead management. By following pre-defined processes, it becomes easy for your organization to jump-start the system adoption and bring industry best practices to your work. Reviews by thousands of bpm’online sales users confirm that indeed blueprint processes can guarantee excellent results.
SPM is meant to educate and motivate sales teams to set goals that ensure maximum customer satisfaction.
Features of bpm’online sales
Before checking out the specific features of this software solution, it is important to note that the system’s interface has a social look and feel, which makes it quick to learn and navigate. Many of the users acknowledge this fact and love the design from redundant information that may keep them away from focusing and what is relevant. You can, therefore, be assured of a consistent user experience regardless of the device you are using: tablet, phone, laptop, or desktop.
You can manage all opportunities in bpm’online sales using out-of-the-box business processes. You and your sales team have the chance to define tactics for each opportunity, track competitors, identify key decision makers, and analyze their strengths and weaknesses. Having done that, you can then quickly generate meaningful sales forecasts taking into account your budget, probability and opportunity stage.
In sales performance management, lead generation is a crucial component to consider. Bpm’online has the right tools to capture and track leads through a broad range of sources. You can simply add leads from different sources into a single database with only a few clicks. Bpm’online sales then, will automatically verify the data, create a new contact and guide you and your sales team through the process of lead management.
This feature helps you and your team to automate all internal processes, be it document approvals or collaboration on complex projects involving several teams. Bpm’online comes with a complete set of tools to effectively manage business processes like modeling, execution, monitoring, and analysis. You can take advantage of the best industry practices to ensure maximum efficiency of business process management in your company.
Sales performance management entails building a 360-degree of your customers by having all accounts and contacts on a single database. Bpm’online sales will enable you to keep a record of all contact data, including addresses, with the ability to track connections between accounts and the relationship in various company structures. This will help you to see the activities they are involved in, and entire interaction history. This all-round customer view will help you to predict the customers’ buying behavior and preferences thus winning their trust.
Sales performance managers can efficiently manage the company’s field force using a single window in bpm’online sales. The software also allows you to create a schedule of visits for each of the sales rep. You can then leverage the data obtained to analyze the efficiency of your sales team and department as a whole.
The sales performance management applications market is rapidly growing at a compound annual growth rate of almost 5% meaning that the SPM applications market is expected to hit over $1050 million by 2021! Organizations can no longer ignore the relevance of SPM especially in tracking and automating different incentive programs for sales reps among other functions specific to inside, outbound and channel sales activities like account segmentation and scoring, territory and quota management, and deal and quote management. Choose the one of the top ranking SPM software today and see robust growth in your organization. Don’t be left behind!