We’re in a unique situation with organizations moving their workforces fully remote, and in addition to many challenges, it has also created an opportunity for businesses to reevaluate their processes and ensure they’re operating at peak performance no matter the circumstance. Now more than ever, enterprises need solutions that give leaders the ability to pivot. Sales leaders need deeper visibility into performance, flexibility, accurate analytics, and insights to improve sales plans.
Sales Performance Management (SPM) solutions help achieve this. Every company has sales performance data, but if you’re like more than 70% of companies, it’s sitting static in a spreadsheet or other complicated homegrown system. Here’s why that’s a problem:
Your data isn’t useful if it’s only showing you the past. Rather, it should be actively working alongside you to continually optimize the present and improve your future performance. Especially in these unprecedented times, you need the ability to model scenarios and look toward the future of your sales team and not just the past.
What is Enterprise Sales Performance Management?
Sales Performance Management (SPM) and incentive compensation management (ICM) are often used interchangeably. However, it’s important to note that they are not the same. ICM refers to automating incentive processes and using your sales data to improve accuracy, efficiency, and overall performance. SPM takes this ideology and applies it across the entire sales planning spectrum, using data to optimize capacity, quota, territory, and incentive planning. In order to understand the current and future landscape of SPM, leaders should first be familiar with several key facts.
- Prior to the COVID-19 pandemic, Salesforce announced that 57% of reps will miss their quota this year. For an enterprise of 5,000 sellers with $100,000 quotas, imagine that the 57 percent only hit 50 percent of quota. That’s an astounding $142.5M lost in potential revenue. Now both of these numbers could be much higher.
- Gartner estimates that 10% of annual sales are lost by enterprises that do not have optimized management of sales territories, quotas, and compensation plans. Can you afford to lose more than that right now?
- A lost sales rep can cost companies an average of $115,000 to replace. Are your top reps engaged and performing amidst the challenges of managing a remote salesforce?
We often don’t see these types of problems coming until they’ve already derailed your progress towards goals—and at that point, there’s very little left for you to do to recover. Enterprises must be able to allocate reps and territories effectively. And businesses of all sizes, everywhere, are trying to mitigate loss and resuscitate their sales teams.
Ultimately, SPM helps you analyze performance in real-time to pivot strategies, adjust plans quickly, and stay on track to hit your goals. This helps you be confident that your territories are optimized for maximized sales opportunity and your reps have the resources they need to hit their numbers.
The stakes are certainly high, but in today’s business world can you really afford to stick to the status quo if it’s not driving the performance you need? Use automated SPM to unleash your full sales potential and drive real growth. Gain predictive analytics and optimize sales processes. See how you can get started today in the Enterprise Guide to Sales Performance Management.