Connect with us


All about Sales Performance Management

Avatar photo



WhatsApp Image 2022 09 06 at 08.37.35

Sales performance management consists of functions that help in the automation and unification of sales operations. It enables improvement in both the efficiency and effectiveness of business operations. Thus, sales management is necessary for any business to bring in higher revenues and profits. The strategies and tools for sales performance management are primarily used by the sales management team to improve the competence levels of their teams. Let us look at sales performance management and define it in detail.

What is SPM?

Sales Performance Management (SPM) is a systemized approach for planning, managing, and analysing sales performance. It is becoming an essential tool for all organisations as an active sales system that is fully integrated with their business goals. The incentives and compensation structure are some of the important parts of the SPM system. However, there are also other parts of SPM like sales forecasting, capacity planning, incentive design, territory mapping, etc.

What is the importance of Sales Performance Management?

To sustain in the competitive market, it is important to optimise how a company sells its products or services. An efficient sales team armed with an effective sales strategy will be able to sell any kind of product or service.   This will boost the competitive advantage of the organisation. Sales performance management is important because  sales managers to develop strategies for sales that cover all the phases of the sales cycle. The management team can implement new strategies as well as techniques that will help their organisations succeed in the various aspects of sales performance.

Having an effective sales performance management system in place is vital to success in today’s highly competitive market. The following are some of the major reasons why an organisation needs to implement a good SPM strategy:

  • Sales performance management can provide valuable data to help forecast sales trends for the future, as well as the employee compensation rates required for  .
  • Allowing sales reps to hone their skills – A proper sales performance management process in place contributes greatly to employee development and encourages them to learn new skills. From newbie ed professionals, everyone can benefit from the performance management program. Additionally, it helps in adding structure as well as accountability to the process of training.
  • Reduction of turnover – There can be a number of things that cause employee turnover. However, can use the sales performance process to engage their sales team and provide them with ample training opportunities.   progress in their careers and reduces the turnover rate among the sales teams.
  • Building a stronger sales rep team – With a performance management structure, the organisation will have the required framework for building a team of sales reps who are equipped with the valuable skills that are needed to effectively drive sales for the company. Clear goals and incentives will create more efficient and skilled sales professionals.
  • Accuracy in performance-based compensation – The organisations with efficient sales performance management keeps the structure of the compensation and the overall business goals aligned with each other, which results in a motivated sales team.

Sales Performance Reporting

It is essential to know what factors are driving the sales. In this regard, sales performance reporting has a major impact on the decision-making of the leadership. Sales reports are a critical priority for all the sales teams. They give an insight into the whole sales process and lay the foundation for successful operations, analysis, and strategy for the sales managers. In addition, a sales report keeps track of the information at each step of the sales process and even analyses the data gathered at different points of interaction. This can help in predicting the company’s success in selling a product and determining ways to improve the process.

What are the key parts of sales performance management?

There are three important components of a sales performance management strategy – field planning, defining the structure of commissions, as well as metrics tracking. These are described briefly as follows:

  • Field planning is the first component of sales performance management. It defines how the sales organisation can segment the current market and make sure that its sales teams are targeting the relevant product category. This will include the determination of account organisation, assigning salespeople to different regions, selling quotes, and building capacity.
  • The second component of sales performance management is the structure of commissions for the salespeople. It is essential to determine and communicate appropriate commissions to motivate the sales professionals of a A good incentive system will enable the optimum utilisation of a sales team. It will also help the sales teams to be flexible and adapt to the ever-changing business priorities and market conditions.
  • Lastly, an effective metrics tracking system will make sure that the sales team is on track towards achieving its set goals and objectives. It provides information about the deals that are closed and the revenue that has been earned in a given period by the sales team. This may include information about pricing and discounting, sales forecasts, and pipeline management over time. Metrics tracking is also useful in measuring the productivity of the sales team. With the help of valuable sales insights generated by a sales performance management solution, a sales organisation can improve its sales metrics.


Effective sales management will help any business succeed in increasing its revenues and profits. It ensures that every aspect of sales is functioning properly. Sales management enhances the performance of the sales team of a business. However, to ensure the success of sales management strategies, a talented sales manager capable of inspiring and leading a sales department is also important. A great sales manager and other sales leaders can help their team to maximise profits and deliver the best value to the customers. In addition, an effective sales performance management strategy must be designed to be consistent with the competitive and marketing strategies of the company.


Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top of the month

Copyright © 2023 STARTUP INFO - Privacy Policy - Terms and Conditions - Sitemap - Advisor


We are a global Innovative startup's magazine & competitions host. 12,000+ startups from 58 countries already took part in our competitions. STARTUP.INFO is the first collaborative magazine (write for us or submit a guest post) dedicated to the promotion of startups with more than 400 000+ unique visitors per month. Our objective : Make startup companies known to the global business ecosystem, journalists, investors and early adopters. Thousands of startups already were funded after pitching on

Get in touch : Email : contact(a) - Phone: +33 7 69 49 25 08 - Address : 2 rue de la bourse 75002 Paris, France