8 SPM Best Practices for Successful Sales Organizations

Jan 03, 2017
2 min read
Sales Performance Management (SPM) helps companies drive performance and manage sales teams more effectively. Here are 8 SPM best practices you need to know.

There’s simply no excuse for allowing your company to tolerate poor sales compensation—especially when the sales transformation process has the potential to completely turn around a rep’s performance, and thus help your company reach its desired goals.

Here are eight best practices to keep in mind as you put the final touches or changes on your compensation plans. 

1. Let Data be Your Guide 

When you design a sales compensation plan without using empirical data, you simply don’t have any way of knowing the industry specific benchmarks that demonstrate how your compensation and incentive plans compare with your peers. Designing without this visibility leaves you guessing, wondering, and relying on your gut for metric decisions that should be made based on unique industry insights.

2. Differentiate by Role

Many sales organizations don’t differentiate by role, but this is a mistake. People like to know where they fit in the team. Knowing that their specific role can help the company meet its goals inspires each employee to perform better.

3. Automate Execution

Often, sales information is gathered from several different sources of truth, while other times it’s simply erroneous – the result of spreadsheet errors or a manual process gone awry. Inaccurate and outdated measurements won’t motivate success or deliver the results you want. If you’ve already hopped on the CRM train, the next stop is SPM automation town.

4. Provide Quota Relief

 Lowering a rep’s quota due to extenuating circumstances can be necessary, and may even result in higher performance. It’s all about market consideration. Let’s say there was a major natural disaster in a rep’s territory. It’s likely to legitimately affect his or her ability to close deals. Relief should be considered in this instance.

5. Promote Cross-sellers

 If you want to promote a rep to a management position, don’t fall for the common mistake of promoting your best Account Exec. Instead, look for reps that cross sell like champs. Why? Great cross-sellers are skilled at seeing things from different perspectives. That’s a trait that is more likely to help them succeed in a management role.

6. Experiment with Incentives 

Has it been a while since you used a SPIF? Maybe it’s time to put more than just cash on the table. Tap into your reps’ personal interests. For example, Super Bowl tickets, an iWatch, or an expensive bottle of wine can outweigh a bonus check of equal value if it’s tailored to fit the personalities of your team.

7. Build a Recognition Culture 

The key to tapping into and leveraging a “recognition culture” lies in finding ways to sincerely recognize and reward all employees. That means not only recognizing their unique talents and contributions, but also recognizing them in ways that are meaningful to them.

8. Eliminate Commission Caps 

Capped commission plans sabotage your efforts to motivate your sales force, sending employees a message to stop trying once they’ve reached a certain level. Plans that are capped too soon also tell employees that you’re not looking out for their best interest, which can result in feelings of mistrust. 

  • Analytics and Technology
  • Sales Performance Management
Jordan Scott
Jordan Scott
Manager, Content Marketing

Jordan Scott is the Manager of Content Marketing at Xactly. She attended The University of California at Santa Cruz, and received degrees in Literature and Education.