Why You Should Care About Sales Performance Management

A measurable and successful sales performance management tool is a crucial indicator of a company’s financial health. With incentive compensation representing a significant portion of any company’s budget, the need to successfully manage sales performance remains a top business priority – especially in economically challenging times.

However, the task of managing sales performance—and encouraging sales behaviors that help achieve corporate goals—is not an easy one for most organizations. Executives still struggle to build support for sales performance initiatives and to gain budget for automated solutions that can help generate the performance, and the revenue, they need to compete.
Many organizations underestimate the importance of sales performance management (SPM) to their financial well-being. According to analysts, only 54% of the business perceived incentive compensation as a strategic tool, while 42% viewed it as just a business necessity.

Companies can only truly gain control over sales performance functions by automating processes that are very time- and labor-intensive. By taking away the uncertainty and lack of visibility that exist when sales performance is not adequately managed, business leaders can focus on their most important task: aligning sales performance to business goals.

Companies can bring about dramatic improvements in sales performance, and meet more business goals than would have been possible without solutions that automate many SPM processes. With an SPM system in place, companies can address the “action items” below that often stand as roadblocks to business success.

1. Gain Confidence in Sales Performance Management

Executives need to make certain that they are getting the most possible value out of incentive compensation—which can represent as much as 10% of a company’s budget— while also using compensation as a strategic tool to drive desired sales behaviors that align with corporate objectives.

Since incentive compensation can represent a significant portion of a company’s budget, successful management of sales performance should become a top business priority. Companies that continue to use legacy methods such as spreadsheets, or do not recognize the importance of integrating SPM into their daily business processes, will find themselves at a competitive disadvantage.

In addition to faltering against competitors, companies without a confident approach to SPM lose out on potential revenue. It’s estimated that enterprises will miss the equivalent of 5% to 10% of annual sales as a “lost opportunity” that could have been captured through improved management of sales territories, quotas, and compensation plans.
As business environments become increasingly competitive, innovative and market-leading companies will turn more frequently to automated sales performance management.

2. Recognize the Value of SPM

The most valuable benefits of sales performance management are achieved via visibility into sales a capability that can only truly be achieved by the sophisticated automated software solution. Sales processes improve when all stakeholders gain visibility into sales programs and performance on a real-time, on-demand basis, and get a strategic understanding of how to align resources to drive profitability.

With an SPM culture in place, companies can bring this visibility to the sales organization, and react to quickly-changing market conditions faster than their competitors—who still struggle to get a window on sales, and who are stymied by spreadsheet-based systems.

By using SPM solutions, every part of the company where variable compensation comes into play—including sales, call centers, marketing, support, and other departments—can now play a part in driving improved corporate performance.

3. End Reliance on Spreadsheets and Manual Processes

The biggest problem facing many businesses that are trying to intelligently manage sales performance is that they rely too heavily on manual, spreadsheet-driven processes and homegrown solutions. These static solutions, can’t offer a real-time view into ongoing sales performance, and as a result, cause high error rates. Moreover, they offer no reporting or analysis and lack the flexibility to roll out new incentive programs to respond to rapidly changing market conditions.

4. Get Buy-in from the Top of the Company, On Down

The decision to implement a sales performance management solution requires a financial commitment, as well as buy-in from departments across the company. For a successful SPM-driven organization, it’s not just the sales department that must commit to the transformation – it’s also finance, IT, and top executives. The most dramatic improvements happen when every department is encouraged to improve performance and meet corporate goals.

A well thought Sales Performance Solution strategy comprises the following areas


At Cx100 we specialize in guiding organizations in the solution around the following areas
1. Agent onboarding
2. Commissions Management
3. Territory and Quota Management

The services that we provide to the organization in their SPM solution journey are as follows:
1. Product Advisory
2. Solution Design and review
3. Solution architecture review and audit
4. Implementation services
5. Adoption services
6. Performance optimization
7. SPM Investment optimization
8. Expert resource services


Check out our SPM offering overview here.

To learn more reach out to us at sales@cx100.com