These days sales productivity becomes a focal point. Every manager wants to increase the sales team’s performance. Everyone wants to be efficient and productive, but it can be an elusive goal to achieve for many salespersons. However, when the sales team is not meeting expectations or spending more time on non-sales tasks, some managers assume that team is not trying enough or is lazy. However, the sales team’s motivation and attitude may not be the problem, but a poor workflow can affect the performance of your sales team. When it comes to sales productivity, the pressure to meet revenue targets may make the sales team struggle. This is the case for most companies. Most companies chase aggressive methods to achieve their goals rather than focusing on improving the sales process. If you want to enable your sales team to sell better, then you are on the right. Here are some tips to increase your sales team’s performance.
What is a sales performance?
Sales performance is the process of maximizing your sales revenue while minimizing the resources that are used to achieve your goals. These resources include time, money, and effort. Sales performance is the measurement of sales activity and results that help you compare the sales quota. It is highly valuable because achieving the desired results can be elusive for many organizations and salespersons.
You can also say that sales productivity is the ratio of output (effectiveness) to input (efficiency). When we talk about organizational sales productivity, then it is an amount of expected revenue that we measure to generate from your sales team over a specific period of time. This helps you to know about the average productivity of your sales team. When we take it individually, then it will be the amount of revenue that each sales rep individual generates per working hour.
For instance, a sales rep brought in $40,000 in the first quarter of the year. He works 40 hours a week and 520 hours in the first quarter as there are 13 weeks in Q1. Now divide the Q1 revenue by the total number of hours worked. So, the total revenue that he manages to bring is $96.15 per hour.
Why is sales performance important for your business?
The sales team will impact your business from every aspect. Let’s look into the ways that will show you how a productive sales team can help your business.
- It is a great method for any kind of business to determine employee retention or bonuses within a different department.
- It also helps the businesses to set achievable targets. Moreover, this ensures that a business doesn’t exceed its capabilities.
- It gives a chance to the team leader to give personalized coaching to his/her team members of different departments. This way, he/she can measure the effectiveness of using sales performance.
- It shows you the capability of your sales team and let you know either your team can sell better with the highest margins with low sales expense or not.
- It also allows businesses to gauge how much resources each department needs.
- Furthermore, it enables the sales team to better utilize their time to achieve the target with a maximum profit margin.
Main factors that are involved in sales inefficiency
If you want to increase the sales team’s performance, then you must understand the factors that help to improve the performance of your sales team. There is a number of factors that are involved in sales inefficiency. We have listed some main factors, so this gives you an idea of how to combat all these factors. Some of these factors include:
- No proper training and coaching sessions
- Follow inconsistent processes and methods for sales.
- Lack of communication between team and manager
- Irrelevant sources and outside distractions
- Extreme pressure to perform better and achieve or exceed targets
- Don’t apply the latest technologies and innovative tools for sales.
- Bad sales culture that generates negative sales tactics
- Consistent change and huge turnover
All the above factors hinder sales performance and more productivity. But fret not; you can combat all of them and achieve what you want.
6 tips to increase sales team’s performance
Here are some simple yet effective tips to increase the sales team’s performance that most sales trainers use. They are a blend of old-school motivation strategies and the latest technology to increase sales activity.
Start with the right mindset
The right mindset has a great impact on your final outcome when you approach a deal. You think you will do it; then you will achieve your targets. However, becoming a higher achiever with constant productivity and sales performance can take a lot of years. Creating an annual vision board can help you become a high achiever. On the vision board, you can gather photos and phrases of what is your ultimate goal and why you want to achieve this goal. Moreover, it helps to visualize success.
Broadcast your sales activity in real-time
If your company can afford to buy a ticker on Fox news that scrolls your sales performance on TV in real-time, most of the audience will surely pick up the phone. But you don’t have to disdain your team members in front of the audience to urge them to take action. Monitor the activity of your team in real-time and put it on screen.
- Put it on your office TV, so the managers can glace at the total number when they see it
- Also, put it on a desktop dashboard, so every team member can reference it for the whole day.
- You can put it on mobile phones too. This way, you and your team can check it during the meeting, lunchtime, and on the road.
Give your team the latest sales tools they need to be flexible
Companies usually analyze their best clients to target them more precisely. Many organizations use the latest sales tool to meet their goals in record time. Reverse email search is the latest tool that many businesses use to get background information about their customers. This tool helps the sales rep to learn more about the customer based on his/her email address. Reverse email search helps to searches inline sources and databases and builds a link between the user and email address.
This enables your team members to personalize your customers’ experience. It will make them feel special and increase the chances of doing more business with your company. When your team has the information about the current customer, then it will make it easier for them to know what to say to each customer to get them engaged. So, if your sales rep uses this information effectively, it will lead to more improvement in their performance.
Track and measure sales activities
When it comes to increasing sales team performance, then tracking and measuring sales activities is most important. Gain deep insights into activity-based metrics for each team member. Consistency is the first condition to measure the activity-based metrics of your team. Ensure that your team members don’t be lazy at charting their daily sales activities. There should be a benchmark to track and measure their sales performance. The most popular methods to measure the activities of your sales team include mean percentage error, average sales, and conversion rates. Use these tools will help you to track the activity of your team and give you deep insights into what strategies to implement to increase the sales performance of your team and make them more productive.
Create a safe space for the sales representative
Have you nurtured a team environment that is accessible and safe for all team members? It is vital for a sales manager to focus on encouraging open discussion among team members and engaging assorted perspectives. Diverse teams perform better, but intentional leadership is very crucial. It is the responsibility of the managers to create a more accessible and safe environment in which employees feel comfortable sharing new ideas and concerns with their co-workers. When everyone’s voice is heard, then they will feel comfortable and perform better.
Combine marketing and sales
When it comes to sales performance, combining marketing and sales can give you magical results. This is also crucial for sales productivity. Most businesses are operating this way and call it ‘Smarketing.’ The partnership of the marketing and sales team can define high-quality leads, determine pain points, and create sales personas together. When both teams work together on a plan, that helps the sales team feel invested in the generation of leads, and it helps the marketing team feel invested in seeing high streams of lead turn to sales.
Monitor the performance of your team, which is very important, and try different methods such as reverse email search. However, keep your sales rep engaged and happy is essential. Also, appreciate their efforts and reward them by offering bonuses, free days, and even pay raises. This will go a long way in encouraging them to stay focused and achieve their goals with dedication. Find the balance between humanity and work to increase sales performance. That’s a win-win situation for you and your team.